‘Coming storm’ in crypto, stocks as Fed ‘cracks’ markets – Clem Chambers

https://www.youtube.com/watch?v=/bSH4pueyL6g

Investors should expect markets to “break” as the Federal Reserve continues to raise interest rates, according to Clem Chambers, CEO of Online Blockchain.

“if so [The Fed] Of course he wants to drive out inflation, something has to go wrong, he said. “If this is indeed the case, there will be an almighty fall.”

Chambers said stocks and crypto assets are in the middle of a “coming storm” that has seen significant declines in 2022, ahead of a major crash.

“Everybody remembers the big crash in 2008, but there was a bear market in 2007, which was the coming wave,” he said. “I think what we’re in right now is a potential storm.”

Chambers spoke with David Lynn, anchor and producer on Kitco News.

Investing in bear markets

Some analysts have suggested that stocks and crypto are experiencing a bear market. Chambers said he took a high position in cash, as a hedge, even though his assets were being “moth-eaten by inflation.”

“I’d rather have my money in Benjamin than Facebook,” he said, hinting that cash loses less buying power than stocks.

His strategy, he said, is to wait for the markets to reach lows and then “pile up” using cash reserves to buy bargain properties.

“Instead of trying to navigate this downhill slope, let’s give it a foundation,” he said. “Save cash, base it, and pile on the bottom.”

However, he suggested that if investors want to go long in certain assets, they should invest in companies with “high risk”.

“Take some money from your pile and put it aside and [invest in] Things at risk,” he explained. “You have to look for special opportunities.”

Inflation and stocks

In the year Inflation in 2022 rose to 9.1 percent in June, dropping to 7.7 percent in October. Chambers says inflation is fundamentally about more than money.

“Inflation is driven by the money supply.” “If you keep printing more money because you’ve got a huge fiscal deficit, you owe that deficit… If you’re printing $1 trillion more every year to fill the government deficit, they’re going to go. To achieve lower inflation of 4, 5 or 6 percent.

Although loose monetary policy can lead to asset bubbles, this is not always the case, Chambers said.

“Some people say it’s inflation, so if you have 11 percent inflation, Microsoft shares are going to be worth 11 percent more,” he explained. “That didn’t work in the 1970s, the last time we had high inflation. The equity market is really affected because everyone [thought] It was a scary environment.”

To learn Chambers’ ‘secret investment tip’, watch the video above

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