Experts say that stocks, bonds, and even cryptocurrencies are being crushed right now, leaving no safe place for investors to hide. Business Insider notes that diversification among the trio failed to protect investments from risks, including rising interest rates, record-high inflation, and slowing economic growth. In other news, more experts are paying closer attention to the next housing bubble. Economists argue that regional housing markets are starting to look more like they did back in 2007.

 

Business Insider/Matthew Fox
There’s nowhere to hide in markets right now with stocks, bonds, and crypto all getting crushed

It’s been a brutal year for investors.

There is seemingly no corner of the market that’s providing a safe haven less than halfway into 2022, and stocks, bonds, and the once high-flying cryptocurrency market are all getting crushed.

This means that diversification — a key tenet of a healthy portfolio — has failed to protect investments from a trifecta of risks, including rising interest rates, record inflation, and slowing economic growth.

Read the full story, here.

 

Fortune via Yahoo Finance/Brian Sozzi
Housing bubble 2.0? Regional housing markets are beginning to look like they did in 2007

When the U.S. housing bubble burst more than a decade ago, it brought the global economy to its knees. It turned out the multi-year housing boom through the early 2000s was hiding skeletons. Homebuyers, driven by a fear of missing out on home price gains, were stretching themselves well beyond their financial means. While zealous lenders were giving out mortgages (or better put, subprime mortgages) to folks who historically wouldn’t have qualified. As that credit rushed in, it helped to drive the housing boom. However, as the housing market corrected, those bad loans created a foreclosure crisis that took many of the nation’s biggest financial firms, like Bank of America and Citigroup, to their brink.

Continue reading, here.

 

Kitco News/Anna Golubova
Gold price’s 5-year outlook: $1,300 or $4,000? MKS PAMP weighs in

With the Federal Reserve’s tightening cycle on everyone’s minds, where will the gold price be five years down the line?

According to the analysis provided by MKS PAMP, there are two options for the precious metal — dropping to $1,300 an ounce or surging to $4,000 an ounce. But it all depends on how fast or slow the Fed tightens.

To project where the gold price could be in 2027, MKS PAMP looked at the yellow metal’s response to the past Fed hiking cycles.

“As the markets continue to digest whether a 50/50/50x hiking profile (vs. 50/75/50x over the next few meets) is actually enough to tame inflation, induce a recession etc., it’s worthwhile to take a step back and assess just what Gold did during past slow and fast Fed hiking cycles,” said MKS PAMP metals strategist Nicky Shiels. “There is a lot of asymmetrical risk depending on whether the Fed hikes quickly (as seen in years 1980/1987/1994) or slowly (years 2016/2004/1999/1977).”

In a slow cycle scenario, defined by incremental hikes, gold could be at $4,000 an ounce in five years.

You can read the full story, here.

 

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