Jack TaTar
Forbes cryptoasset & blockchain advisor
FoCus: Cryptocurrencies, blockchain and fintech
strategy: Tatar views crypto assets and bitcoin as appropriate alternatives in a well-diversified investment portfolio, with a potential 5% to 15% overall allocation based on financial goals and objectives. He analyzes crypto assets using traditional financial-analysis tools such as modern portfolio theory, Sharpe ratio and correlation analysis. Tatar provides education and investment recommendations. “I believe that the next Amazon or google will come from the crypto-asset and blockchain space,” says Tatar, noting that even with the volatility, an investment in bitcoin has seen fivefold appreciation over the past five years. “This is an asset class with a lack of correlation to equities and fixed income that shouldn’t be ignored by investors,” Tatar says. “Plus, you have the potential of high rewards for investing in the next transformative technology company or currency out there.”
Case study: Tatar views bitCoiN (BTC) as a relative blue chip among cryptocurrencies, and it has an allocation within his crypto and blockchain portfolios, which also include common stocks of companies that benefit from blockchain and other innovations in fintech. Tatar also seeks smaller or lesser-known crypto-asset investments, such as stellar (Xlm), which he feels have a compelling catalyst for significant growth. “recently I recommended Ethereum and its etHer (etH) crypto asset, which I had avoided because of concerns with transaction speeds, significant price drops and confusion around long-needed software upgrades,” Tatar says. “After the substantial crypto bear market, it was oversold, and I recommended it because of the technical picture, as well as upcoming software upgrades being welcomed by the community to address speed and network-congestion issues.” From prices below $100 in December 2018, Ethereum had risen above $150 by mid-January 2019. Crypto assets and blockchain are revolutionizing a myriad of industries, including healthcare, financial services and tech. But which investments deserve a place in your portfolio? Go to forbesmagazine.com/crypto