The founder of the world’s largest hedge fund says cryptocurrencies like bitcoin meet his firm’s criteria for a market bubble. Bitcoin and its peers can’t be spent very easily and they make for a poor “storehold of wealth” compared with, say, gold, due to their extreme volatility, Ray Dalio of Bridgewater Associates told CNBC in a Tuesday morning interview. Read: Everything you need to know about digital currencies, in one massive graphic “Bitcoin is a highly speculative market. Bitcoin is a bubble,” he said. See: Bitcoin might be forming a top when…your 68-year-old dad paints a picture of it Bitcoin BTCUSD, -1.67% hit an all-time high around $4,950 on Sept. 1 but has since retreated to $3,982.13,
The U.S. central bank is poised to begin a two-day meeting. The Fed is expected to take another step towards normalization and could also announce plans to begin unwinding its $4.5 trillion portfolio of Treasuries and mortgage backed securities. The central bank has grown concerned both with the effect low rates have on stock markets while simultaneously grappling with lethargic inflation metrics and sluggish wage growth. While investors doubt bankers will elect to raise rates in September, more and more now foresee another rate hike by the end of the year.
shares will plummet at least 25% when its production fails to match Wall Street's guidance, Jefferies analyst Phillipe Houchois wrote in a note Tuesday. "Given capital intensity, we don't think DCF can justify the current valuation, let alone upside," Houchois wrote.