While the whole US economy struggles to reduce inflation and provide protection to many industrial sectors from a crisis, analysts and experts are more and more prone to talking down cryptocurrencies and, to be fair, most other speculative assets that have been so popular as of late. Jim Cramer was along people warning against buying crypto, but he is not alone.
JPMorgan Asset Management’s main strategist David Kelly has been vocal about the performance of the US government which is, as he puts it, underestimating the severity of the economic issues and overvaluing the strength of the US economy. He noted that the Federal Government made a couple of big mistakes that led to increased inflation and the situation best described by Jerome Powell, the chairman of the Federal Reserve.
He said that the US economy is standing on one foot in a recession and on another balancing on a banana peel. In general, the situation is worrisome to many investors who trade volatile assets, since the volatility usually increases in such economic circumstances. It means that short-term investments are less reliable.
David Kelly believes that all investors must enter defensive positions and avoid using value stocks and income generation strategies. He also stated that he believes that the economy will stabilize by the end of this year which is an optimistic take compared to what many other analysts say.
Many corporations and fund managers have the same position and talk about tightening belts and going for stable assets and long-term investments that can survive the storm. On the other hand, it feels like a conspiracy with known shills like Cramer chiming in and talking down cryptocurrencies and value stocks.
We have to do our research and focus on what can save us the most money. It seems that the idea of getting some Bitcoin and holding to it is a good strategy since it is the most reliable crypto asset. However, other crypto-related investments do seem wonky at best and scare away many individual investors and guys in black suits.