Elon Musk, the world’s richest man, has revealed what investments he believes are best when inflation is high, while stating he will not sell Bitcoin, Ethereum or Dogecoin.
The world’s richest man, Elon Musk, took it to Twitter to share his thoughts on the issue of high inflation in the country. Musk has always been outspoken about his beliefs and even shared his views on the topic of asset allocation with an investor during a conference.
- In an unusual move on Twitter, Elon Musk, the CEO of Tesla and SpaceX, has shared that both companies are coming under increasing pressure from increasing commodity prices.
- Musk posted an article from the Financial Times discussing the fact that global commodity prices are on track to see the biggest weekly rally in over 50 years.
- High inflation numbers are also reflected in the US Consumer Price Index. The Bureau of Labor Statistics released the numbers on March 10th, and the index that’s largely used to gauge inflation came in at 7.9%.
- Commenting on Musk’s post was MicroStrategy’s CEO, Michael Saylor, who said:
USD consumer inflation will continue near all-time highs, and asset inflation will run at double the rate of consumer inflation. Weaker currencies will collapse, and the flight of capital from cash, debt, & value stocks to scarce property like Bitcoin will intensify.
- Musk said that “it’s not surprising that [Saylor] would reach that conclusion” since Saylor’s company holds over 125,000 bitcoins, the biggest chunk of all the crypto assets.
- However, Musk also shared his thoughts on what assets he thinks are good to hold under the current predicament:
As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.
- He also outlined that he still owns and has no plans of selling his Bitcoin, Ethereum, or Dogecoin.
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