- David Kelly has come up with suggestions for crypto investors.
- He asked the investors to buy the value and sell their crypto with the hawkish Fed.
- Kelly’s suggestion went behind Powell’s remark on the Fed’s monetary policy.
David Kelly, Chief Global Strategist of JPMorgan Asset Management, has put forward some advice in the context of the recent inflation preventive decision of the US Federal Reserve. Kelly stressed that those investors suffering from the hawkish Fed rules could forget “short-term direction and focus on valuations.”
On August 26, Jerome Powell, Chair of the US Federal Reserve, talked about monetary policy and price stability in an economic policy symposium at Jackson Hole. Powell said that the central bank is willing to raise rates and keep them higher for a longer period to combat inflation. This has made the equity market value panic on the same day.
In response to Powell’s speech, Kelly said, “The economy has got one foot in a recession and the other on the banana peel now.” Furthermore, he added that investors should make sure that they overweight US and international value, as well as stocks with a relatively “low price-to-earnings ratio.”
Kelly also expects a high risk of recession and more volatility in the market, and at the end of the next year, the economy will come back to normalcy. More so, he said that the Federal Reserve is overestimating the strength of the US economy as it feels guilty about the fact that “inflation went up under their watch.”
The global economy, including stocks and crypto, has been going through a financial recession since the beginning of this year. The Russia-Ukraine war and the US monetary policies and inflation rate hikes are some of the global issues that badly affected the crypto market.
As of now, Bitcoin (BTC) has surged 2.7% in the last 24 hours and is currently changing hands at $20,406. However, the coin has been trading low by over 3% in the past seven days. In the past week, BTC was hovering at $21,000, which then steeply tumbled on August 26, and registered around $20,000. As the price of BTC went down, other major coins were also trading low, at the time of writing.