Concerns that the tension between Russia and Ukraine would slow down the global economies caused the sales in the US indices to continue. bitcoin seems somewhat comfortable today.
Oil rose as high as $139 on the 13th day of Russia’s invasion of Ukraine, testing levels last seen in 2008.
Meanwhile, gold rose above $2000 again. As of our news hour, gold continues to be traded at $1984 and oil at $123.
In risky products, we see that the pricing regarding the Russia-Ukraine tension and inflation concerns continues.
The US stock markets, which have been falling for 4 weeks, started this week with sellers. As of our news hour, the losses in the stock markets exceed 2%, and it remains unclear how the indirect effects of the Ukraine crisis will hit the economies.
The Risk of Stagflation Is At The Door
Investors are weighing the potential economic consequences of possible disruptions to the global energy supply.
Leuthold Group’s chief investment strategist, Jim Paulsen, stated that the market is preparing itself for “stagflation” and said;
“As a result, stagflation has become a central point in portfolio strategies. Investor fears and actions are mounting as preparations continue for slower growth and more persistent inflation.”
Meanwhile, despite the pullback in US indices bitcoin It continues to be traded at a premium of 1% on a daily basis.
Exam Time for Bitcoin
At the end of this chaotic period bitcoin He will have passed an important test. Because, how long will Bitcoin, which wants to create its own story as digital gold, protect its investors in the environment of war and high inflation? we will see it all together.
Since Bitcoin is a new instrument, it is acceptable that it is more volatile than gold. Regardless of short-term movements, Bitcoin will send the message to the world at the end of this struggle whether it is a good inflation hedge.
*Not Investment Advice.