Bitcoin is in a clear bubble, says Ariel Investment's Charles Bobrinskoy

uh could end badly here with opportunities outside of crypto is Charlie vincoy who is vice chair and head of the Investment Group at Ariel what what a back-to-back pairing Charlie welcome love to hear your thoughts thanks for having me Kelly the headline is that Bitcoin is going up because it has gone up recently people are playing this momentum they have seen people on television get rich this is a getrich quick scheme getrich quick schemes always end badly there is no they used to pitch it as being having transactional value now they are admitting that the

only value it has is store of value and what and where he Mike is wrong and God bless him he's he's done very well and built a real company where he's wrong is in thinking that the government has had a sledgehammer against their knees Bitcoin has less regulation than other Commodities less regulation than foreign currencies it is benefiting from in fact that's its main appeal that's why it's used by blackmailers and foreign terrorists is because it isn't regulated you can send massive amounts without having to live with know your customer rules the way that banks

have to deal with a $50,000 deposit try making a $50,000 payment out of Bank of America you will get lots of questions about know your customer so the point of this is that it has gone up because it's gone up and it will go down dramatically if it starts to lose that momentum and that will happen Mike's right that in the short-term regulation is unlikely to get worse but there are lots of people in the government who do not believe that undermining the US dollar is a good thing for the US and who are worried

about individuals getting badly hurt yeah by the way I'm still in the camp that I don't like the dollar being the reserve currency it makes it too expensive this is what's hollowed out our manufacturing base it's criminal the fact they were putting tariffs on China when all this could be solved if they didn't artificially suppress their currency it's like we're we're creating two problems to solve the original one I agree with you but we've got $33 trillion worth of debt and people better believe in the dollar or we're problems are going to be a lot

worse we we can Ser we can service that households will buy it we saw how many people created a treasury direct account for 5% rates over the past couple years 100% we could fund this no Kell you a lot of US Treasury Securities are owned by foreign entities yes because they have to because they have to buy them in order to keep their currencies low and if they didn't do that they wouldn't be enabling this massive debt pile that we now have to deal with so you may be right my point is that the US

government and the leaders of the Federal Reserve and frankly members of Congress do not believe it's in the best interest of this country long term I know undermine the dollar yeah and I think and crypto is all about undermining the dollar and so I think they they are not as regulated as he thinks Mike thinks they are they are certainly less regulated than other Commodities other Financial Assets in the short term he's right because the regulatory environment is not going to get worse but I think longer term um regulation is more likely to go up

than down which is a great point about kind of how it's going to mature as a kind of traditional and classic um financial asset class Charlie you mentioned that you kind of and so did Mike share this concern that not only crypto but the S&P the markets are kind of frothy right now so what's the Practical advice to do about all that great question Kelly we we don't think you should trade tactically all the evidence says that people when they try to trade around valuation do it exactly wrong they buy at the top and they

sell at the bottom that's why the average investor doesn't get as good a return as the indexes do but you can make adjustments and you can do small things Warren Buffett has been trimming positions we do believe right now is a good time to trim um stocks that have run too much they're things like giving um appreciated stocks to your favorite Charities this year you can take a full tax deduction on an appreciated stock without paying the capital Gant get the deduction this year we would advise doing that and frankly I would advise going down

the risk Spectrum a little bit taking some beta off the table the nice thing here is one industry that's gotten beaten up is the healthcare industry with people being worried about Kennedy coming in and so there are a lot of low beta less iCal Healthcare stocks that are more attractive so on the margin take risk off maybe even put increase your cash give to your favorite charity um and don't add more at the top