Forward View: Crypto and Ukraine

Forward View

February 2022

Cryptocurrencies like Bitcoin and Ethereum have exploded. There are now over 15,000 cryptocurrencies on the market. Meanwhile, the growth of DeFi and smart contracts is accelerating.

These technologies will become part of a global financial platform that could eventually challenge mainstream institutions.

In this 30 min video, I provide a summary of the blockchain ecosystem and a compelling case for why cryptocurrency is a revolutionary innovation. For current investors in crypto, I also discuss how it fits into portfolios, the current "crypto winter", and what happens next.

Click here for video.

Jim Lee, CFA, CMT, CFP

Founder, StratFI

Ukraine Invasion and the Markets

It's all over the news today - Russia has launched a full-scale invasion on Ukraine. I'm no expert in geopolitics. I follow Peter Zeihan for this sort of thing... and he put out his commentary early this a.m.

What I do know is that markets are reacting negatively... and that this is temporary. The S&P 500 is now in correction territory (10%+ loss from peak), and Nasdaq 100 is in a bear market (20%+ loss). S&P 500 corrections generally do not end in bear markets unless the economy is in a recession. No signs of that yet.

Historically, the average drawdown after a major geopolitical event is about -5%, which can take around 3 weeks, typically followed by a meaningful recovery.

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Disclosure: Information contained herein is for educational purposes only and is not to be considered a recommendation to buy or sell any security or investment advice. Securities listed herein are for illustrative purposes only and are not to be considered a recommendation. The author may personally hold positions in securities mentioned.