Ewpple | Income For Life
Ewpple - Yield, Crypto & Gold Market Outlook Jan 2022
Yield Market
- The Fed might end its QE program in Q1. 3 rate hikes are expected. 7% inflation is the highest in 39 years
- Analysts prefer government and investment-grade corporate bonds with a maturity of <5 years
- Data centers, infrastructure, and industrial REITs recovered the fastest
- Past 1 year returns for AGG: -3.2%
- Past 1 year returns for VNQ: +30%
Crypto Market
- Deflationary BTC and ETH could benefit from Fed action
- Loose monetary conditions and novel applications like DeFi, NFT, and crypto gaming trigger a demand surge
- BTC & ETH holders & miners are storing their holdings in long-term cold storage
- Past 1 year returns for BTC: +16%
- Past 1 year returns for ETH: +130%
Gold Market
- Gold is negatively impacted by rising government bond yields & tighter monetary policy
- But, gold is also an inflation hedge
- Analysts expect gold to range between US$1,700 and US$1,900
- Past 1 year returns for GLD: -0.3%
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