Crypto could outperform stock, says Bank of America chief
The chief investment strategist at the Bank of America noted that there are less favourable situations for stock and bond markets over Crypto & Commodities.
In the last 3 years, the world saw a huge economic downturn because of the Covid-19 pandemic and also impacts because of the Covid-19 are going, which can be seen in Turkey, Sri Lanka like countries, where inflation is rapidly climbing upwards and further increasing prices of goods and services significantly. Some decisions were taken by the federal reserve in favour of the US dollar dominance and that resulted in a significant hike in inflation, which is now maximum by more than 4 decades. Now US financial bodies and stakeholders are engaged in lowering inflation.
By taking such things under consideration, the chief investment strategist at the Bank of America (BofA), Michael Hartnett, stated on the money market in the weekly research note to the organization.
Through the research note, Michael claimed that the latest efforts by the Federal Reserve to slow down the inflation may initiate a sudden shock for the US economy because of tightening policies, under a situation where investors are expecting to see 0.5 points more hike in the interest rate.
“Inflation shock’ worsening, ‘rates shock’ just beginning, ‘recession shock’ coming.”
Chief of Bofa also noted that it may further boost the dominance of cash, volatility, commodities, and cryptocurrencies, which may outperform bonds and stocks.
Earlier this, Bloomberg’s senior commodity strategist Mike McGlone also passed a similar type of comment and noted that the crypto industry may get a better situation over the stock and further it there will be chances for crypto to evolve as a dominant money market in the US economy.
Mike added:
“The key thing about crypto this year is that they are part of an ebbing tide of the lower stock market and the Federal Reserve fighting inflation, (as well as) almost all central banks in Western countries (…), yet they’re coming out ahead.”
Read also: Mozilla Foundation will re-start to accept crypto donation
