You might be asking yourself, How can I make money in 2022 with a turbulent market? There is a lot of FUD (Fear, uncertainty and doubt) circulating in the markets this year, and if you haven't figured out why yet, it is because of the rate hikes due to inflation.
The consumer price index for all items rose 0.6% in January, driving up annual inflation by 7.5%. That marked the biggest gain since February 1982 and was even higher than the Wall Street estimate. Core inflation rose 6%, which also was a notch above expectations, with real earnings for workers increased just 0.1% on the month when accounting for inflation.
Investors new that the Fed will raise rates March, and that is why stocks dropped in January. Now, the question is how much of a rate hike is being priced in. Early last week, we saw the markets seemingly wanting to move up. When the more than expected CPI data came out on Thursday, stocks routed for the remainder of the week. A lot of 'experts' are seeing a 0.5% rate hike in March now.
Goldman Sachs Group Inc. strategists lowered their forecast for U.S. stock returns this year as the prospect of more aggressive monetary tightening weighs on valuations.
The strategists cut their year-end target for the S&P 500 benchmark index to 4,900 points, down from 5,100 points previously. It compares with Friday’s close of 4,418.64.
The less optimistic outlook still implies 11% upside from current levels to fresh record highs, although the strategists cautioned that risks are skewed to the downside.
It shouldn't come as a surprise that this year will be a little volatile and we should expect less returns in our buy and hold portfolios than last year when the Fed was printing money. Of course, I wouldn't be surprised if this is more or less the bottom and a good buying opportunity for your high conviction long term plays. Also, I can see when the Fed raises the rates in March, markets start moving up into the summer; almost as if a weight has been lifted. In my opinion the biggest thing keeping markets down right now is that FUD. Uncertainty is scary.
What should we invest in now?
Of course this is the golden question, and I can only answer for myself. I think the biggest shift or add to in your portfolios this year should be crypto. I don't buy and hold many alt coins because most of them won't be here in a few years time. My biggest crypto holdings are BTC, CRO and ETH respectively.
The best thing about buying and holding these coins is that you will be able to stake them in Crypto.com for up to 14% APY. Click the link to sign up and receive $25 for free.
CRO is the native token for Crypto.com. Let's take a look at a comparison of technical analysis between it and other blue chip coins.
CRO is down 15% YTD.
BTC is down almost 10% YTD.
However, ETH is down 22% YTD.
CRO is more volatile than BTC, most everything will be. However, it is outperforming ETH right now. For the last 12 months CRO has risen more than 500%.
If we look closer at the performance of these three coins, CRO is winning most every category. How can that be? Crypto.com has spend hundreds of millions on marketing, it is an emerging top tier exchange and is the fastest growing. They have secured partnerships with Lebron, Snoop, F1, Aston Martin, some NBA teams and the UFC + much more.
The best thing, besides the appreciation you will realize and besides staking your CRO for up to 12%apy, is their VISA card that you can get up to 8% cash back on. No card in the world is doing that. Check out their website for more info.
I am a firm believer of diversification, and I think we should be in all of these blue chips that I've mentioned. However, CRO has the best chance to grow your net worth more than the others at this point. Let's look at how much I expect CRO to grow.
There is almost $36B of market cap that is garbage meme coins.
If CRO jumps into the 10 spot, that puts CRO at almost $1.
When CRO goes into the top 5 and has $60B mcap, that is a 500% gain from today.
In my opinion it is realistic. Binance coin, or BNB, it Binance's native token just like CRO is to Crypto.com. Binance has been trending down as a platform while CRO has been trending up this past year. If the trend continues, CRO will catch up to BNB. Don't forget that Coinbase ($COIN) has a market cap of almost $51B, and let's be honest - Crypto.com is much better than Coinbase. CDC has no fees, while Coinbase is still charging 2%. Just like stock trading platforms that eventually phased out trading fees, Coinbase is in a losing business model right now.
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Have a great weekend everyone!
Disclaimer: The comments opinions and analysis expressed herein are for informational and educational purpose only and should not be considered as individual advice or recommendations. Prostockadvice.com is not responsible or liable in any way for opinions expressed here. This is not meant to be financial advice as we are not a licensed financial advisor.