Market insights and analysis

How dynamic, risk-managed investment solutions are performing in the current market environment

2nd Quarter | 2022

Market insights and analysis

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Updates on how dynamic, risk-managed investment solutions are performing in the current market environment.

Last week, gold prices tested the lows for the year before bouncing back. The metal closed the week at $1,801.50 per ounce.

As we continue to face economic slowdowns, high inflation in the U.S. and Europe, and the threat of global food shortages, now is a good position to evaluate the effectiveness of various “safe haven” assets.

Cryptocurrencies were originally billed as competitors for the “safe haven” classification, alongside gold. However, so far they have failed to perform in a way that shields an investment portfolio from the economic and political storms that are now upon us.

While major equity indexes such as the S&P 500 and the NASDAQ plunge into bear market territory and bonds continue to struggle with rising interest rates, gold has held relatively steady at less than -1% year to date.

By contrast, two of the major cryptocurrencies have crashed this year: Bitcoin (BTC-USD) is down 60%, and Ethereum (ETH-USD) is down over 70%. Cryptocurrencies have failed to perform as stores of value in these difficult times, while gold has again proved its worth as a “safe haven” for investor portfolios.

Rick Andrews is president of Avant Capital Management.



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