There is much buzz over the recent comments made by a leading asset manager, and if you are an investor in one of these big name companies then you may not have heard of him. In his recent Financial Times article, Tom Mludzinski, the CEO of Morgan Stanley Asset Management Group, has said, “Bitcoin is now the number one treasury reserve asset.”
So what does this mean? Well, it means that any sort of investment in digital assets like e-gold, e-coin or e-shares must be considered as a main treasury asset.
So why does a CEO at a top asset management group think that there are two distinct asset classes in the world of financial markets? This is because many investors like to invest in a number of different types of assets so they can diversify their portfolio as much as possible.
What’s more, different asset managers are taking a different approach in terms of how they are choosing their main assets. Some of them like to invest in physical gold and silver rather than digital ones. Others prefer to use more tangible assets like bonds, stocks, and even money. This means that they are looking at the value of the different assets and making a distinction between their main treasury reserves.
What’s the implication here for an investor in the asset management world? If this statement is true then it means that any type of investment into digital assets such as e-coin or e-gold needs to be seen as a primary treasury asset. If you own any of the above assets then you need to consider this and decide whether your asset portfolio will hold up even with a major change in the US dollar.
And if this happens then you should go ahead and sell these assets for a quick profit and not hold on to them and risk losing them as the value of the currency pair goes down. I would expect that in the future many investors will do this because it makes sense financially. But until then it is important for investors to learn about asset management and make sure that they know what they’re actually doing and when it makes sense to sell something for a quick profit in the market.
What an asset manager does is they put together a portfolio of all of the different types of assets that they own. They look at the current price and their main treasury reserves to decide which ones will hold up best. They then make a call to sell the assets that will give them a big profit.
You can buy into the above theory and consider it an asset manager’s forecast for the future of the asset portfolio and then take action to protect it. Or you could ignore it all together and let it ride and hope that it all holds up.