That's what one top Wall Street Analyst thinks anyways.
Tom Lee said today that he thinks Bitcoin will outperform stocks and bonds the rest of the year, or any other asset class for that matter.
If you have been following my blog for any length of time, the name Tom Lee might sound familiar to you.
I wrote a post about him several weeks back, it can be read here:
https://steemit.com/cryptocurrency/@jrcornel/the-mother-of-all-game-changers-central-banks-will-start-buying-if-cryptocurrency-tops-usd500-billion
Basically, Tom Lee is the first major Wall Street Analyst to issue a report on Bitcoin.
To the details...
Why does Mr. Lee think that Bitcoin is going to out perform other asset classes from here on out?
To, Mr. Lee it is quite simple:
"Bitcoin is an under-owned asset with potential for huge institutional sponsorship coming."
That's great Tom, but why are they all of the sudden going to buy it now?
"In the past, institutions had to directly buy the coin through a broker, but now that both the CBOE and the CFTC have opened up options and futures trading, I think it's going to grow in it's holdings."
That is very interesting and something I touched on briefly as well in my post on the topic.
By the way, more about those CBOE and CFTC announcements can be read here:
https://steemit.com/cryptocurrency/@jrcornel/bitcoin-options-are-on-the-way
https://steemit.com/cryptocurrency/@jrcornel/and-just-like-that-the-derivatives-market-is-opening-up-to-bitcoin
Basically, it sounds like Lee is thinking that with derivatives coming, it will open up Bitcoin to a much wider group of investors, which will ultimately drive the price higher into the end of the year.
Others agreed with Lee about Bitcoin outperforming other assets mostly because there wasn't many places for money to go right now.
The stock market is at or near all time highs, gold is locked in a trading range, and bonds are still not offering much in the way of returns.
Bitcoin is making new highs seemingly every month, where else would money go?
This isn't Lee's first comment on Bitcoin.
Referenced in my post linked at the top of the page, Lee published a report in early July outlining his thoughts on Bitcoin and why he thinks it will ultimately rise above $20,000 by 2022 at the minimum. His maximum price target was $55,000 by 2022.
As you can see, he is pretty optimistic about Bitcoin in general.
However, before you dismiss him as being overly optimist or another pie in the sky dreamer, keep in mind that he has nailed a lot of his calls in the past.
In fact, he was one of the few on the street that predicted a Donald Trump victory in the elections would cause a stock market rally, a contrarian view at the time as most thought a Trump victory would be bad news for stocks.
He has also been right on a number of other calls in the past, in fact he has turned out to be one of the best performing analysts I have ever come across in regards to making predictions.
He is a perennial favorite among big institutions and one of my personal favorites as well.
The one caveat to all of this...
It sounds great hearing him say that he thinks Bitcoin is going to outperform all other assets from here, but he didn't really give us a number.
That is important because if you look at his prediction for the US stock market from here, he actually has stocks ending the year roughly 8% lower than they are today.
Making him one of the most bearish analysts on the street by the way.
Given that context, Bitcoin could actually end the year 5% down from current levels and still outperform US stocks, if his prediction for the markets is right anyways.
Either way, after listening to his interview, and even though no numbers were given, it seemed clear that he thinks Bitcoin is going to SIGNIFICANTLY outperform from here...
Not just fall less than the rest. ;)
Stay informed my friends!
Sources:
https://www.cnbc.com/2017/08/10/fundstrats-tom-lee-expects-bitcoin-to-be-the-best-asset-through-year-end.html
Image Sources:
http://www.businessinsider.com/tom-lee-strategies-ytd-returns-2016-4
https://www.slideshare.net/HubSpot/stop-being-a-creep-why-emailopenclicktrackingwithsalesstrategyslideshare
Follow me: @jrcornel