Ric Edelman, Founder, The Digital Assets Council Of Financial Professionals, explains why aggressive investors should allocate 40% of their portfolio to cryptocurrency.
Transcript:
CAROLINE WOODS: You’ve made a lot of headlines, Ric, about the percentage allocation you’re recommending for crypto. Fill us in about how much of our portfolios should be in crypto at this point?
RIC EDELMAN: I created a white paper that I released a couple of weeks ago that says for conservative investors, you should have a 10% allocation. Moderate portfolios should be 25% And aggressive investors should be 40% into crypto. This is astonishing. No one has ever said anything like this before. Most who are investing in Bitcoin would argue a low single digit 2 three 4% So this is a radical departure from that.
CAROLINE WOODS: And a radical departure from the 60/40 portfolio, which doesn’t even include crypto. So in terms of that 40% for aggressive portfolios, what is that replacing? Replacing all bonds? Or what’s in the other 60% then?
RIC EDELMAN: Yeah I don’t agree with the 60/40. Fundamentally the 60/40 is dead and obsolete and should be replaced by 80 over 20. And the primary reason for that, Caroline, is longevity. We’re living longer than ever before. Odds are very high. Most people alive today will live to age 100 or beyond. This is because of astonishing improvements in medical technology and innovation. And if you’re going to live to age 100, having only a 60% allocation to equities makes no sense. You need to be able to have your money last as long as you, and that means an 80% allocation to equities. And if you’re going to have 80% of your money in equities, I’m suggesting that 40% half of it for an aggressive investor should be in crypto.
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