Cryptocurrency has been making headlines in recent months, and three types of digital currencies, in particular, are gaining the most attention: Bitcoin .
By John Jannarone Stable Road Acquisition Corp.
Index.“Equity investors might feel it’s too hot, as higher inflation has historically been associated with lower equity valuations,” Leuthold’s Chun Wang wrote in a Thursday report.But that finding came with a caveat.“Admittedly, this relationship has weakened over the past two years but, given the heady valuation level today, it wouldn’t take a big increase in inflation to trigger a derating move.”A prior research note from the firm postulated that such a move could translate to a fall of 37% for the S&P 500 Index if its multiples to sales and earnings return to their mean levels since 1995.Ultimately, the answer might lie not in whether inflation appears, but in the extent to which it manifests, said Keith Lerner, chief market strategist at Truist Advisory Services.“Some inflation is fine for the overall equity market,” Lerner said.
benchmark move relative to each other — remains well below the average of the last 10 years.“Our way to cope is being overweight in equity alternatives such as Merger Arbitrage and CTAs and focus on idiosyncratic ideas rather than broader sectors,” said Bantleon AG portfolio manager Oliver Scharping.Transitory ShockStill, not everyone believes the world is set for a new era of higher prices and JPMorgan’s Keen isn’t making significant changes to her portfolio despite the recent inflation concerns.The portfolio manager sees inflation as transitory due to year-over-year base effects and temporary supply chain bottlenecks and is conscious of structural deflationary forces that remain in place such as technology, high debt levels and poor demographics.“Loan growth remains muted and fiscal stimulus comes with offsetting tax increases,” Keen said.
With that said, perhaps the most important lesson here is that instead of gambling on Dogecoin, why not learn a trading strategy that can deliver real results? For example, Mindful Trader has created a data-driven swing-trading strategy that can potentially help you grow your account.
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