'We don't think it has a role': Zenith tells clients to avoid crypto after market rout
The crypto asset class has fallen in tandem with equities and other risky assets during this year's market rout and has not provided a hedge against inflation.
Fund researcher and wealth adviser Zenith Investment Partners is telling clients to avoid crypto after the asset class failed to provide diversification or a hedge against inflation during recent market turbulence.
Speaking at a media briefing on Tuesday, the research and advisory house's head of asset allocation Damien Hennessy said he was sceptical whether crypto had a place in portfolios given there was only 12 years of data available for the asset class.
He said gold had provided a better inflation hedge than crypto and that crypto had not provided diversification in a declining market.
“It’s been more of a risk-on asset. That's what the evidence says today. If you're buying it and putting in a portfolio as a diversifier, I think you're misleading yourself,” Hennessy said.
