It seems like for the past 12-18 months people have been predicting a recession. Interest rates have skyrocketed from zero to 5%. Companies have been doing lots of layoffs. Regional wars have been started in Ukraine and Israel. Seems like a no brainer that the economy would slow and recession would be entered. This doesn't seem to be happening however.
Growth in the United States continues to be strong. Tech companies, Crypto and many other assets are on a solid run lately. Perhaps we will make it through unscathed with a magical soft landing.
Ever the cautious optimist I am positioned conservatively. I'm holding about 30% of my portfolio in interest bearing cash accounts, roughly 4% yield across the whole range of currencies. About 60% is held in stocks, mainly large cap tech, and about 10% held in various digital assets. Returns have been great this year, about 42% year to date has almost fully erased 33% drop in portfolio in 2022.
Overall there seems to be a lot more positivity in the market that rates have peaked, and inflation has been tamed. If this is true, great, but could also be a headfake similar to the 1970's so best to be prepared for that possibility too.
Growth in the United States continues to be strong. Tech companies, Crypto and many other assets are on a solid run lately. Perhaps we will make it through unscathed with a magical soft landing.
Ever the cautious optimist I am positioned conservatively. I'm holding about 30% of my portfolio in interest bearing cash accounts, roughly 4% yield across the whole range of currencies. About 60% is held in stocks, mainly large cap tech, and about 10% held in various digital assets. Returns have been great this year, about 42% year to date has almost fully erased 33% drop in portfolio in 2022.
Overall there seems to be a lot more positivity in the market that rates have peaked, and inflation has been tamed. If this is true, great, but could also be a headfake similar to the 1970's so best to be prepared for that possibility too.