Luis Stuhlberger, CEO of Verde Asset, has embraced Bitcoin amidst growing inflation in the U.S. and a weakening dollar.
Key Points:
- Luis Stuhlberger on Bitcoin: Luis Stuhlberger, CEO of Verde Asset, stated that investors need to adopt a pragmatic attitude by recognizing Bitcoin’s outperformance during times of macroeconomic instability.
- Bitcoin’s Relevance: Bitcoin, along with gold, has gained relevance in Verde Asset’s portfolio due to its uncorrelation with traditional markets in times of turbulence.
- First Bitcoin Investment: Verde Asset first invested in Bitcoin during the cryptocurrency bull market in 2021 and now holds 2.5% of its portfolio in Bitcoin, representing part of R$ 17 billion in assets under management.
Bitcoin’s Surge Amid Market Skepticism
Although Bitcoin remains a controversial asset for traditional investors due to its lack of dividends, Stuhlberger pointed out its tremendous potential for appreciation. “Everyone hates it, no one wants to own it, but it’s rising crazy,” said Stuhlberger, emphasizing Bitcoin’s decoupling from traditional risk assets during the turmoil caused by U.S. tariff wars.
The recent market environment, particularly the economic strain caused by tariff wars and increasing geopolitical uncertainties, has positioned Bitcoin as a potential “digital gold,” offering a hedge against the volatility of traditional financial assets.
Inflation and the U.S. Dollar’s Decline
Stuhlberger also predicts that the U.S. will experience rising inflation as tariffs on Chinese products drive up import prices. He projected that the average price of imported goods could rise by about 11%, with capital goods seeing an increase of up to 20%, contradicting the expectations of many experts. “The market thinks the tariff shock won’t spread, and that U.S. economic weakness will keep inflation under control. I disagree,” Stuhlberger stated.
As part of Verde Asset’s strategy, they maintain a 24% allocation to this thesis, betting that U.S. inflation will surpass market expectations in the next three years. Stuhlberger has also positioned the firm to benefit from the declining value of the U.S. dollar, driven by uncontrolled public debt growth. The instability in the U.S. Treasury bond market signals a decrease in demand for the U.S. dollar.
Greenback’s Decline: A Benefit for the Euro
In light of the U.S. dollar’s expected decline, Stuhlberger sees the euro as a potential beneficiary. Verde Asset has also allocated 5% of its portfolio to a long position in the euro against the dollar.
Brazil’s Political and Economic Outlook
On the Brazilian front, Stuhlberger remains optimistic about the Brazilian stock exchange, B3, as the upcoming presidential elections near. He referred to this as the “electoral trade,” which began earlier than expected, even though official campaigns have not yet started. Despite the country’s fiscal situation, Stuhlberger believes that the market can continue to rise above it.
Stuhlberger has placed his bets on Tarcísio de Freitas (Republicanos) as the opposition candidate to President Lula. “Here in Faria Lima, no one believes Lula will win,” he said.
Conclusion
Luis Stuhlberger’s comments highlight a growing acceptance of Bitcoin as a hedge against inflation and geopolitical instability. Despite Bitcoin’s controversial position in traditional investment portfolios, its performance amid global uncertainty reinforces its appeal as a digital asset, poised for further growth.
Disclaimer: This article does not provide investment advice. All investments and trading carry risks, and readers should conduct their own research before making any financial decisions.
