Mark Cuban Stock Market Prediction

Mark Cuban Stock Market Prediction: Even though many look to established companies to invest in for financial security, the truth is that investing is almost always an unpredictable thing. For this reason, guiding lights are a source of both inspiration and reassurance – the Warren Buffetts and Mark Cubans of the world have been there and done it.

Cuban in particular is a noteworthy voice because he’s been a successful entrepreneur and a wealthy investor as well as a successful brand builder and media personality. But what is it about Cuban that so many seem to trust? And what does he have to say about where to park your money now? 

Why Mark Cuban Has Credibility

It all started back in the 1990s, when Cuban and business partner Todd Wagner started an audio streaming site called Broadcast that eventually sold to Yahoo for almost $6 billion just four years after they founded the site.

From there, Cuban has continued to be a success story, amassing a net worth of over $4 billion by investing in Magnolia Pictures, AXS TV, and countless other small but lucrative startups.

His investments largely focus on companies that do good in the world, such as Luminaid and Mahmee. As a result, his name has become somewhat synonymous with good investments. His time on ABC’s Shark Tank has only helped boost his credibility as a financial guru of sorts.

Is Mark Cuban Predicting Stock Market Crash?

Mark has been involved with the stock market through thick and thin over the past few decades, and his immense wealth clues us in on the fact that he’s more or less an expert on the subject at this point.

As such, his thoughts on a potential stock market crash are not to be ignored: In January of 2021, Cuban expressed concern over deflation in response to recent interest rate trends.

He said he’s “hedged the heck” out of his portfolio over the last several months in an attempt to cushion the blow of any negative trends that may be on the horizon.

To be clear, he’s not predicting a crash, per se, but he is certainly wary of some potentially tumultuous times for the financial world coming soon.

Mark Cuban on Money Printing

While much of Mark Cuban’s financial advice is taken by retail investors and traders at face value, some of Cuban’s comments prove to be quite controversial.

Take his stance on money printing, for example: Back in March of 2020, with the novel coronavirus just beginning to take a strong hold of the world, Cuban called on the government to print as much money as it takes in order to keep the country, its people, and its businesses afloat during the pandemic, then deal with the consequences later on down the line.

The distribution of stimulus checks, expanded unemployment benefits, and PPP loans were just a handful of the programs that sparked to-date a forecasted $6 trillion in spending, which is now a cause for inflation concerns more broadly.

Mark Cuban on Inflation

More than anything else, Mark Cuban currently seems most concerned with inflation in America. He fears that low interest rates will lead the way to much higher interest rates down the line, potentially resulting in a period of financial stress for many Americans.

We’re in the middle of the greatest economics experiment ever. The old models are useless. We are printing$6T. What if we can print $1T a year and not have inflation? What if we could just accumulate that debt? Would it work? How could we change the economy as a result?Thoughts?

— Mark Cuban (@mcuban) July 15, 2020

This connects back to his thoughts on a potential stock market crash: hedging your investments is the way to go right now, at least according to Cuban. One possible way to do this is investing in crypto, which Cuban has done plenty of himself.

Mark Cuban’s Bitcoin Views

Considering Cuban earned much of his wealth during the dot-com boom of the late 1990s and earned even more off of lucrative startups, it makes sense that Mark would have a lot of trust in the potential wealth to be found in disruptive technologies — namely Bitcoin (BTC) and other forms of crypto such as NFTs and DeFi (more on that next).

Cuban says that Bitcoin is so appealing to invest in right now because of low interest rates. He says this results in people willing to take more risks with their money, because the returns could be greater.

He went on to explain that Bitcoin is a not exactly a safe way to hedge your investments from any rough patches on the stock market. While it’s far too expensive and limited to ever become a real currency in Cuban’s opinion, Bitcoin is still an investment worth looking into for him.

Mark Cuban on DeFi

Bitcoin is a legitimate opportunity to Mark Cuban, but what he’s really passionate about is DeFi — also known as decentralized finance.

Cuban says he urges his companies to take a percentage of their cash balances and learn how to use DeFi to maximize yields on that percentage.

He predicts this will become a key part of a CFO’s job, and that it’s only a matter of time before most companies will be looking to DeFi as a way to increase their yields — to Cuban, DeFi is just too straightforward and frictionless to be ignored.

How To Protect Yourself

Seeing as Mark Cuban has taken the time to hedge his investments, it might be in your best interest to do the same. Looking to him as a guide on what to do, let’s explore some of the different ways to protect yourself and your investments should Cuban’s predictions come true.

Buy Tangible Assets

Investments in tangible assets like real estate, private equity, oil, gas, and agriculture are a smart way to allocate money to ensure proper diversification from the big-name tech companies that grab headlines.

These tangible assets are not completely removed from Wall Street trends but equally they do not necessarily live and die by what the stock market is doing.

Invest in Stocks Less Correlated To Big Tech

As we’ve seen with COVID-19 and the widespread dips that followed the onset of the virus, there are some companies that prove to be recession-proof:

Stores like Target (TGT) and Lowe’s (LOW), utilities like NextEra Energy (NEE), and discount stores like Dollar Tree (DLTR) have thrived in the midst of recession before, and are likely to do so again should another come our way.

Hedge With Cryptocurrencies

Lastly, there’s Bitcoin and other cryptocurrencies like Dogecoin, Ethereum (ETH), and even NFTs. Because these cryptocurrencies live outside the confines of the stock market — just like tangible assets — they’re a potential way to save your portfolio from taking too big of a hit when things take a downward turn.

Keep Cuban’s advice in mind, though: It’s unwise to put all your eggs in one basket, so to speak, especially with the kinds of dips we’ve seen with crypto in the past.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.