Quick dive Friday (Interest rates And Volatility)

We don’t yet expect a crypto comeback.

The main reason is the US Fed’s decision to hike or not to hike moves; how many hikes remain unclear, but some experts peg the number at four rate increases. Due to this hawkish mood, market narratives and sentiment have shifted from risk-on to risk-off.

We do expect increased and persistent volatility.

Volatility means a need for the market to shift expectations. We are moving from an economic recovery into an expansion. And as the global economy transitions, monetary policies adjust from being accommodative to more normal. Investors are now pricing in their expectations of monetary policy. Once the market takes these expectations into account. We could see a reduction in volatility, possibly once interest rate hikes start to come through. It just takes time.

As we transit

We believe that: This is the beginning of the transition to a less exceptional / more normal market regime, and investors need to digest several variables as they navigate the bumps in the road. The transition itself is not a surprise, but how it unfolds is unpredictable. It pays to be a selective, patient, and knowledgeable investor at these moments.

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Quick Dives

Quick Dives

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Our dives are the result of our relentless in-depth analysis and our convictions. We share them so that you can invest with conviction, too.