The analysts have spoken (well, some of them) and they agree that gold is still the real hedge against inflation, not cryptocurrencies. “It is now clear that bitcoin trades parallel to the risk assets, rather than [as] a safe haven,” Ipek Ozkardeskaya, an analyst with Swissquote, said in a report earlier this month. “Bitcoin is still not the digital gold, it’s more of a crypto-proxy for Nasdaq, apparently.” Louise Street, Senior Markets Analyst with the World Gold Council, added, “Stagflation risks are rising and geopolitical tensions show few signs of a quick resolution. Gold is historically one of the strongest performers in a stagflationary environment, in which equities suffer and commodities often retreat.” In related news, Deutsche Bank has predicted that the Fed will trigger a major U.S. recession by the end of 2023 by hiking interest rates to between 5% and 6%.
 

CNN Business/Paul R. La Monica
Sorry, crypto fans. Gold is still the real hedge in times of uncertainty

It looks like bitcoin and other cryptocurrencies may not be digital gold after all.

Bitcoin prices are down more than 15% so far in 2022. Other top cryptos, such as ethereum, solana and Elon Musk’s beloved dogecoin, also have fallen sharply this year. Meanwhile, tactual gold is up more than 4% and back around $1,900 an ounce, once again flirting with record highs of above $2,000.

Savvy investors seem to realize that, at a time when the Federal Reserve is aggressively raising interest rates, gold and other precious metals such as silver and palladium are better hedges against inflation.

“It is now clear that bitcoin trades parallel to the risk assets, rather than [as] a safe haven,” Ipek Ozkardeskaya, an analyst with Swissquote, said in a report earlier this month. “Bitcoin is still not the digital gold, it’s more of a crypto-proxy for Nasdaq, apparently.”

Continue reading, here.

 

Business Insider/Harry Robertson
The Fed will plunge the US into a major recession by hiking rates above 5%, Deutsche Bank predicts

The Federal Reserve will plunge the US economy into a major recession before the end of 2023 by hiking interest rates to between 5% and 6%, Deutsche Bank has predicted.

The lender’s economists, led by David Folkerts-Landau, said in a note on Tuesday they believe the Fed will have to raise interest rates much higher than analysts currently expect to successfully stamp down on inflation.

“We will get a major recession, but our strongly held view is that the sooner and the more aggressively the Fed acts, the less longer-term damage to the economy there will be,” they said.

Read the full story, here.

 

Fox Business/Megan Henney
What do a barrage of big Fed rate hikes mean for Americans’ wallets?

Federal Reserve Chairman Jerome Powell last week solidified expectations for a half-percentage point rate hike at the central bank’s May meeting as officials look to tame red-hot inflation, a move that could have major implications for millions of U.S. households.

Central bank policymakers raised rates by a quarter-percentage point in March, but have since confirmed that sharper, half-point increases are likely in the coming months, beginning in May, as they look to tame sky-high inflation. The government reported earlier this month that prices soared by 8.5% in March from the previous year, the fastest pace since 1981.

You can read the full story, here.

 

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