January 30, 2023
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Rate hikes and stock sell-off? Here’s what it means for your retirement portfolio, and whether you should add crypto into it


Hello! Welcome back to Distributed Ledger, our weekly crypto newsletter that reaches your inbox every Thursday. I’m Francis U, Marketwatch’s Crypto Reporter. Find me on Twitter Franান্সois_ Feel free to send feedback or we should cover.

I am Jamie P., managing partner at Carson Group Resources Solutions. Sit down with Hopkins to chat about what the Fed’s tightening of the rules for retirement investing means and of course its views on Bitcoin.

Crypto in an instant

Bitcoin BTCUSD
CoinDesk lost 0.1% in the last seven days, trading at around .4 36,423 on Thursday, according to data. Ether ETHUSD
The seven-day stretch rose 0.6% to about $ 2,738. Meme Token Dogecoin DOGEUSD
Another 2.7% loss when another dog-themed token, Shiba Inu SHIBUSD,
6.7% less than seven days ago.

Crypto matrix
The biggest beneficiary


% 7 day return








$ 4.49



$ 104.47


Pancake swapping

$ 7.84


Source: CoinGecko 5 May

The biggest decliner


% 7 day return


$ 0.31





Axis Infinity

$ 32.97



$ 15.12





Stocks and bonds

Rising interest rates are “not bad for retirees in general,” Hopkins said in an interview.

“Many retirees are looking for higher bond yields, CD yields, fixed income yields. So if you don’t stop all of this, for the retirees around, it could be a little bit better, “Hopkins said.

Meanwhile, for those who stand just before retirement, “the downturn in the market is actually a good situation, which feels the opposite,” Hopkins said. “When good things go down, you are more likely to rise and fall through flats in the next few years or at least after retirement. And so you get a higher sustainable withdrawal rate, ”according to Hopkins.

Hopkins added that despite the current macro environment, he prefers a portfolio with a growing equity segment through retirement. When performing Monte Carlo simulations, which model the probability of different outcomes, “portfolios that spin off their allotted bond portions before retirement actually exceed certain portfolios, such as 60-40 (60% in stocks, 40% in bonds), equity portfolio.” Hopkins says. “And that doesn’t mean you’re buying more stocks, but you’re not spending them.”

Investing in Bitcoin for retirement?

Although Hopkins says it is reasonable to allocate 1% to 2% of the portfolio in cryptocurrency, he is cautious. “I think a lot of people in the area are looking at how I can take risks and make more money. I still sit next to the investment philosophy around it, “Hopkins said.

Hopkins says he is concerned about the risk of cryptocurrency custody. He is also concerned that many existing crypto projects may fail or be replaced by new ones, as the ecosystem develops. Looking back, as of February 2018, nearly half of the initial coin offer projects launched in 2017 were destroyed, Fortune reported at the time.

Although the crypto industry has matured, it is still in its infancy, Hopkins noted.

Hopkins said, “I think the challenge, though, is that in five years it will leave consumers feeling intimidated, because they will have to experience something that is essentially invisible.” “If you just say, invest in the stock market, and in five years, half of it will be gone. How will consumers feel, right? They’re a little scared of the stock market, “said Hopkins.

In addition, although Fidelity Investment plans to offer bitcoin offers for 401 (k) plans, according to Hopkins, the U.S. Department of Labor’s response could raise employers’ concerns.

401 (k) The department issued a statement warning planning trustees to “exercise extreme care” before considering adding a crypto option to the plan’s investment menu.

Read: Bitcoin on your 401 (k)? Loyalty has introduced this as an alternative – when it makes sense and when it doesn’t

Loyalty “It’s going to be available, but you still have to sign off on a trusted investment committee. It’s very risky because if something goes wrong, the Department of Labor tells you to be extremely careful. It doesn’t look good, does it?” Hopkins says.

SEC’s crypto Unit

Adding regulatory headwinds to crypto is the latest move by the U.S. Securities and Exchange Commission. The company said on Tuesday it had almost doubled the location of its cyber unit and renamed it “Crypto Assets and Cyber ​​Units” in a statement.

The unit will have 50 locations, up from 30, and is now responsible for “protecting investors in the crypto market and from cyber-related threats”.

Binance supports Musk’s bid

Binance, the world’s largest crypto exchange, has agreed to contribute $ 500 million to Elon Musk’s pending acquisition of Twitter at $ 54.20 per share, or about $ 44 billion, reports MarketWatch’s Emily Berry.

Twitter’s board of directors accepted Mask’s bid to buy the company in an April 25 deal. The agreement is subject to shareholder and regulatory approval.

Crypto Company, Fund

Shares of Coinbase Global Inc. Coins
Thursday fell 11.6% to $ 115.05 It has declined 6.2% in the last five trading sessions. Michael Seller MicroStrategy Inc.
Thursday lost 13.1% to $ 318.91, while it has fallen 20.4% in the last five days.

Excavator Riot Blockchain Inc.
The stock has fallen from 12.2% to 10.16 and has fallen 7% in the last five days. Shares of Marathon Digital Holdings Inc.
It has lost .6 15.70 from 11.6% with a loss of 6.7% in the last five days. Another miner, Ibang International Holdings Inc.. Ebon,
Lost $ 0.85 to 16.5% with 9% loss in last five days.

Overstock.com Inc.
The stock was down 8.3% at $ 35.86. Shares rose 11.1% during the five-session period.

Shares of Block Inc.
Officially known as Square, the week went from 10.4% to $ 95.70 with a loss of 8.5%. Tesla Inc.. TSLAOf
The stock lost 7.6% to $ 879.91 while its shares rose 0.3% for the last five sessions.

PayPal Holdings Inc.
8% down to $ 85.33, and during the five-session extension it dropped 7.4%. Nvidia Corporation
Lost 7.6% to 7 187.9, while the last five trading days saw a loss of 5.1%.

Advanced Micro Devices Inc.
It fell 5.5% to $ 93.99 on Thursday, up 4.7% from the previous five trading days.

In crypto funds, ProShares Bitcoin Strategy ETF
8.7% down $ 22.72 on Thursday, when Valkiri Bitcoin Strategy ETF
Was down 8.6% to .1 14.1. Vanek Bitcoin Strategy ETF
Lost 9.5% at $ 35.30.

Grayscale Bitcoin Trust
The stock traded down 8.9% at .3 25.32.

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