Soros' Fund CEO Says Crypto is Here to Stay, Warns of Recession and FOMO Trap
Crypto is “here to stay,” but a recession may be around the corner and investors should beware of “FOMO,” according to Soros Fund Management CEO and Chief Investment Officer Dawn Fitzpatrick.
Speaking in a video interview with Bloomberg, Fitzpatrick said that crypto is not going away any time soon as “it has gone mainstream” with companies like Fidelity allowing US clients to add bitcoin (BTC) to their retirement savings.
Still, the fund manager said there is “one caveat” to her view on crypto.
“Climate impact is coming increasingly in focus, so in that context, I think ethereum (ETH) is likely to gain some more traction over Bitcoin,” Fitzpatrick, whose fund was founded by legendary investor George Soros, opined.
Commenting on the chances of a recession in the US, Fitzpatrick said that demand from consumers and companies in the US remains “robust.” However, she added that “the bottom line is that a recession is inevitable, it’s just a matter of when.”
And although Fitzpatrick said that markets are pricing in that a recession will come “fairly soon,” she added that she thinks the markets “might be wrong.”
“I don’t think we’ll avoid a recession, I just think it will be further out than people expect,” the investment manager said, noting that the US is “one of the most insulated” countries in terms of the war that is going on in Ukraine. “Europe is way more affected,” she added.
Lastly, Fitzpatrick also touched on the common psychological trap investors often fall into, known as ‘FOMO’, or the fear of missing out.
“I think FOMO, buy high sell low,” is the most common mistake investors make, Fitzpatrick said, explaining that “you don’t need to have a great idea every day.”
“There are times to be patient, and there are times to
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