Clem Chambers is CEO of Online Blockchain plc, the UK's leading listed blockchain research and development company. He is also founder and former CEO of stocks, shares and cryptocurrency website ADVFN.
"With the euro markets - and particularly with the UK market - there's a very obvious trend down; not a crash but a bear market grind down. It is quite possible that could go on for another two to three years. Meanwhile the American markets are ludicrously high and it’s a few gigantic stocks driving the indices. The prices of various companies are utterly ridiculous; look at Tesla, it’s worth five times Ford and GM put together. Something is fundamentally wrong and to me that’s prognostic of a crash.”
I say put your assets into 33% cash, 33% stocks and 33% gold/crypto, but that might be rather dramatic for many people. So, here is a thought for the cash-loving who idolise their regal cash and would be sad to part with it, even while the spectre of inflation looms...
Spread your cash as follows: 33% USD (probably the most inflation prone), 33% euro (printing but not like the confetti folks at the Fed) and 33% yen (Japan practically invented deflation, and for a good reason (spoiler): they like it.
The market is meant to be a super-efficient valuation mechanism but it appears to be broken. In a nutshell, a company the scale of Berkshire Hathaway should not be performing this way. The stock market has lost its ability to value companies and is now a warehouse for cash.