David Kelly, global strategist at one of the largest investment banks JPMorgan, believes that until the US Federal Reserve develops a plan to overcome the economic crisis, investors should play it safe.
David Kelly gave some advice to those who are concerned about the aggressive behavior of the Fed and the ongoing crisis in the cryptocurrency markets. According to him, now investors should focus on defense and assessment of their actions, and not on short-term investments.
The businessman offers to invest in stocks, long-term bonds and their alternatives, which will bring, albeit small, but income. At the same time, he recommended selling digital currencies and avoiding large-cap tech stocks and bitcoin.
According to him, the economic situation will stabilize next year, but he advised not to make big bets on this, since the behavior of the Fed in the current conditions is very unpredictable.
“The Fed is overestimating the strength of the US economy as it feels guilty that inflation shot up when they took control. The big question now is how much more damage the Fed will do to the economy,” Kelly said.
In his opinion, the US economy will be on the verge of a recession until the Fed eases its efforts to curb inflation. Recently, Fed Chairman Jerome Powell said the economy “has one foot in recession and the other on a banana peel.”
Earlier, JPMorgan analysts reported that the “contagion effect” from the collapse of Terra has been overcome, and the future transition of the Ethereum network to PoS will have a beneficial effect on market growth.
