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Chris DeMuth Jr., a portfolio manager at Rangeley Capital, writing in prominent investor portal Seeking Alpha, suggests investors optimize their cash holdings and put 10% of it in bitcoin.
DeMuth began his explanation with an overview of the current investing environment. He noted the stock market is very pricey.
Stock Market Pricey
The stock market price is currently about 119% of the GDP. The annual average total returns from that level is less than 1% historically. The cyclically adjusted price-to-earnings ratio is around 26, which is 58% higher than average, which is 92% as high as it’s ever been. The implied future annual return is negative, and the price-to-sales ratio globally is as high as ever.
The U.S. market is one of the most expensive in the world. It is also expensive relative to earnings, sales, book value, cash and