JPMorgan investment bankers advise investors to focus on hedge funds and real estate in the new year. These alternative assets could clearly outperform the stock and bond markets. Here you can achieve gains of an average of eleven percent, the strategists at Wall Street Bank JPMorgan believe that the stock and bond investments can only increase by around 5 percent, as Bloomberg reports.
In particular, those hedge funds that select assets based on macroeconomic trends are expected to have a strong year. The reason: The Federal Reserve is now curbing its purchases of securities. This will increase market volatility again, which will weigh on bond prices. Real estate – and above all industrial and residential real estate – would also benefit from the above-trend economic development.
However, the bankers see difficulties for investors with an investment horizon of less than a year. “Unlike traditional asset classes, building positions and exiting them is less easy here,” the experts emphasize.
Market experts also believe that cryptocurrencies will develop strongly in the new year and assume that digital assets will increase by 15 percent in 2022 – and thus probably more significantly than real estate (12.5 percent). However, the strong fluctuations in the cryptocurrency market would reduce the attractiveness of cyber currencies, Bloomberg continues to quote the experts. For Bitcoin, they expect a price target of $73,000 for the new year. “Digital assets are in a multi-year structural ascent, but the current entry point looks unattractive,” it says, with a view to the current price level and the persistently strong fluctuations.
