Cryptocurrencies are not suitable in investment portfolios because of unstable returns and volatility, and low correlation between various cryptocurrencies.
A number of my posts over the years have highlighted evidence that manager selection does not add value to the portfolio process. (See "Manager Selection is a Hail Mary Pass"). This holds true for investment consultants, hedge fund of funds, among others. This latest study finds the same holds for pension fund consultants.
ShapeShift cryptocurrency platform has started asking customers for personal information in what will be an increasing trend for firms to conform to a version of know-your-customer rules. This would be an important step in increasing the legitimacy and assets of cryptocurrency. Enhanced transparency for cryptocurrencies is also a high priority for government regulators in getting comfortable with the market.
Is a 1993 and 1998-type debt crisis coming? For those of us who lived through the previous debt crisis see some critical similarities to today's conditions: shrinking risk spreads; increased leverage, especially in emerging countries and China; potential dramatic political mayhem; an increase of concern about the level of debt. In previous cases, the key to the crisis was a global turn towards risk avoidance. So far, this has not been onerous. But the risk is certrainly there.
Ezra Zask has been actively managing, consulting, teaching, advising, writing and speaking on hedge fund and investment management issues for over three decades.