Billionaire hedge fund manager Kenneth Griffin is warning that a combination of persistent inflation and rising concerns over U.S. sovereign risk is driving investors to seek shelter in alternative assets like gold and cryptocurrencies.
Gold And Crypto’s ‘Unbelievable’ Run
On Monday, in an interview with Bloomberg, Griffin said, “inflation is substantially above target, and substantially above target in all forecasts for next year,” noting that it was part of the reason behind the U.S. Dollar’s sharp depreciation during the first six months of this year, the “single biggest decline” in the currency in 50 years.
This depreciation in the dollar, according to Griffin, is fueling significant flows into non-dollar stores of value. “Gold is at record highs,” he said, while noting that “other Dollar substitutes” such as cryptocurrencies have had a similarly “unbelievable” run-up.
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“We’re seeing substantial asset inflation away from the dollar as people are looking for ways to effectively de-dollarize or derisk their portfolios vis-a-vis US sovereign risk,” he said.