Hello, guys.
Here are some news: Morgan Creek Digital (crypto-focused institutional asset manager) issued a $1 million bet against the S&P 500 stock market index. The crypto fund bets that a basket of ten major crypto assets will outperform the SPX over the next 10 years, starting Jan. 1, 2019. The S&P 500 is based on market capitalizations of 500 large companies that have common stock listed on major stock exchanges.
The challenge from Morgan Creek Digital, dubbed “Buffett Bet 2.0,” evidently echoes a similar bet made by Wall Street’s prominent crypto critic Warren Buffett, who in 2008 bet $1 million that the S&P 500 would outperform a group of hedge funds over a ten year period.
Anthony Pompliano, co-founder and partner at Morgan Creek Digital, stated:
"A lot of people might look at this and just think we're bullish on crypto — but you need to look at what asset we're going up against. Public equities aren't exactly at their all time highs either."
He also made an observation about the performance of traditional stocks in a tweet last month, stating that FANG (Facebook, Amazon, Netflix and Google) went down 20-40 percent from their all-time highs, while the Dow Jones Industrial Average (DOW) had its “worst Thanksgiving week since 2011.”
What do you guys think? Who will win the bet?
