The current level has shown great strength. Which could be telling us that we have already hit rock bottom. Or, in the worst case, the bottom is very close. Of course there is still a lot of volatility and uncertainty.
We still have a war in Europe. Time goes by. But things there do not seem to improve. In fact, in many respects, the contest has escalated. Putin is not a baby. And his broken pride can still give us a surprise. Europe is entering a recession fueled by an energy crisis.
The Chinese economy is experiencing a major slowdown caused by the fight against Covid-19. Inflation in the United States refuses to go down thanks to an overheated economy and insufficient supply.
In these times of volatility and uncertainty, investors are finding stability and predictability by adding cash and bonds to their portfolios. The dollar, of course, is not a perfect solution. It can be quite a safe haven. However, the yields are usually very low.
In fact, they can be negative when taking inflation into account. Of course investments are good or bad relative to their alternatives. For most investors, it is better to lose 3%-8% a year than to lose 30% or more in the S&P 500. Or better than to lose 60% or more in Bitcoin and other cryptocurrencies.
Bitcoin Outlook
Outlook cryptocurrencies
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