Investing: Crypto, Paper, or Bullion?

Investment options are in flux as we near the close of 2022. Cryptocurrency, Credit and Debt, the US Dollar, the US GDP, and US Politics all seem volatile, but there is good news for the savvy investor.

Many cryptocurrency firms look to adopt plastic debit cards to provide tangible access to accounts. They hope easy access to crypto funds will encourage global participation in the market (source). Cryptocurrency as a whole has lost 90% of its value thus far in 2022. In order to offer potential investors security, some firms have pinned their coins to the USD. These pinned-to-USD-cryptos are called USDTs. If “buy low, sell high” is your motto, then the time is now.

Although the US is financially stable and in good standing at this time, the nation lost its Standard & Poor’s triple-A credit rating in 2011. Eleven years on, the nation has yet to regain the AAA status and the national debt has increased every year. Living within a fractional lending system means that additional bank debt is viewed as wealth. In other words, Uncle Sam’s loans make the National, and International Banks richer (on paper) because of the fractional lending system. That increase in perceived worth stabilizes the Global Economy which is good news for global investing.

That being said, the Dollar is still gaining traction as inflation reaches a 40-year high. The Federal Reserve may or may not decide to increase interest rates to combat inflation next month, as stocks, gold, and real estate continue to decline in value. Treasury Secretary Janet Yellen aims to reduce “inflation while maintaining a strong labor market” (source). This is good news for investors in domestic manufacturing.

The United State’s gross domestic product (GDP) is also experiencing a downturn, but that decline has taken us back to pre-Covid levels. Covid-19 caused a decrease in GDP (down 3.4%) in 2020, followed by a spike (up 5.7%) in 2021, and now, the current decline (down 1.6%) is well within the realm of normal. The current numbers are comparable to the GDP changes of 2011 and 2013. Things are not as dire as the shock jocks portend.

For many years, the US political climate has been divided. This year, people on both sides of the aisle are concerned with the US economy. Budget concerns are but one of many pressing matters on voters’ minds as they head to the polls on November 2nd. What can you do?

With inflation making everyday purchases more expensive it is difficult to parse out the best potential investments. Diversity provides resilience in your portfolio, and in our nation. Check your registration status, or get registered to vote at USA.gov and find your polling location at VOTE.org so your voice can be heard.

Thank you for joining us today.