Global economy, US President Trump’s tariffs in the midst of the tariffs, economic stagnation in the markets and rising inflation in the stagflation concerns are discussed. Investors focus on the necessity of developing long -term strategies while evaluating the returns of existing developments.
Economic Stagflation and Tariffs
Grayscale Research President Zach Pandl, tariffs can reduce economic growth and increase inflation, expressing the tariff’s possible stagflation effects on the agenda, he said.
“Tariffs give the economy a shock of stagflation; reduces growth, raises inflation.” – Zach Pandl
Currently, the markets are focused on the risk of recession, but evaluations are made on the possibility that inflation will continue over time.
In the 1970s, investors, such as the Arab Oil embargo, turned to gold in the face of uncertainty in the market. Experts emphasize that the current situation has different dynamics compared to the past performance of the American economy.
Bitcoin and Tariffs
Bitcoin $84,870.96Although he was inadequate in giving what is expected in the past economic uncertainty periods, he began to attract the attention of different investor groups under current market conditions. Especially if the dollar is weakened, it is expected that investors in developing markets will come to the fore with the quality of crypto assets.
Steve Sosnick, Chief Strategist of Interactive Brokers, said that the unemployment rate in the US economy is low and inflation is more controlled than the past.
“Although there are stagflation concerns, the weight of the shocks in the 1970s has not yet been reached.” – Steve Sosnick
This approach shows that discussions on risk and opportunity balances while evaluating the general situation of the markets.
At the Fed’s last meeting, the clues to interest policy indicate that perhaps the way to reduce the existing interest levels to support the economy. Pandl, after the meeting in the statements, interest rate cuts can come to the fore the support of the economic -supporting effect, he added.
“The message we receive from Jay Powell points out that it is possible to reduce interest rates.” – Zach Pandl
In the light of these developments, while the efforts of diversifying the portfolios of investors increase, comparisons between gold and digital assets continue. In the general uncertainty environment of the markets, long -term strategies have become important.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
