Alfonso Peccatiello, author of The Macro Compass; Risky assets like stocks and cryptocurrencies, as well as traditional safe-haven assets like gold, could take a hit this year, with rising interest rates, disrupting global supply chains and shrinking aggregate demand, he said. Here are the details…
Peccatiello shared his comments on possible investment tools
Peccatiello said, “This is an environment where you have nowhere to hide. “You can’t buy stocks, you can’t buy gold, you can’t buy Bitcoin,” he said. The expert, who is the author of his own newsletter after managing the multi-billion dollar multi-asset portfolio fund, noted that today’s macro environment is similar to 2018, when all assets fell together:
All you want to have is cash dollars and dollars at the end of the day. there would be some protection on your risk assets. So some volatility, some VIX and some dollar cash. Other things are, but sorry but it doesn’t work.
Peccatiello states that he takes a short position in stocks, especially technology stocks. He also mentions that the S&P 500 will drop its trade to 10 percent lower than current levels this year.
Gold and Bitcoin review from Expert
The expert said that while gold may enjoy some of its factors later in the year, the risks for the precious metal in the foreseeable future are to the downside. “The problem is that inflation expectations are starting to unravel. We have started pricing traders with the probability that inflation will rise above 5 percent in the next five years,” he said. I claim we are. They will really make sure that interest rates are raised to much higher levels and this will hurt gold. As we have reported as
Kriptokoin.com, the FED is expected to accelerate the rate of interest rate hikes this year, which will be negative for technology sectors. As Bitcoin has such a close relationship with tech stocks, Peccatiello expects Bitcoin to pull back as low as $26,000 per coin.
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