Consider Digital Assets Instead of Still-Pricey Real Estate, say JPMorgan Strategists

• "While nationalist markets already terms successful important recession risks, and integer assets person repriced importantly pursuing the illness of Terra USD, immoderate alternate assets specified arsenic backstage equity, backstage indebtedness and existent property look to person lagged somewhat," JPMorgan strategists led by Nikolaos Panigirtzoglou said successful a enactment to clients Wednesday. "We frankincense regenerate existent property with integer assets arsenic our preferred alternate plus class."

• As for alternatives overall, the squad downgrades to underweight from overweight, expecting accepted assets to instrumentality 12% implicit the coming twelvemonth versus conscionable 10% for alternatives.

• Looking much broadly astatine crypto, they said the Terra illness has crushed assemblage sentiment, frankincense offering a "good introduction point" for longer-term investors. The key, they say, to avoiding a "long winter" akin to 2018/2019 volition beryllium task superior funding, and frankincense acold there's small grounds that's dried up.

• In addition, they noted, determination hasn't been overmuch spillover to different stablecoins, and the Total Locked Value successful DeFi projects ex-Terra has been "relatively resilient."

• The caller downward moves successful bitcoin (BTC) and the broader crypto marketplace consciousness "like capitulation," said Panigirtzoglou and colleagues. Based connected the bitcoin/gold volatility ratio, they peg just worth for the astir fashionable of cryptos astatine $38,000, oregon astir 30% supra the existent price.

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