When the latest set of economic data was released in early August, it didn’t make the prettiest of reading.
Most analysts pointed at what’s known as a yield curve inversion, as a sign that the US economy was possibly heading towards dreaded recession, with many sectors still recovering from the last one caused by the housing crash of 2008.
But what exactly is a yield curve inversion, what what does that mean for investors?
Almost every standard investment portfolio will contain some kind of bond, which is a loan given to companies or the government (e.g. US Treasury bond).
A yield curve is a tool used to measure those bonds. What happened on Wednesday 14th August was that the 10-year bond yield value dropped below the yield of a 2-year bond.
Why is that worrying for investors?
Well a traditional yield curve trends upwards, with longer investments accruing higher yields to account for the longer amount of time the money stays invested.
Yet this inversion means that people are willing to take less interest on a long term investment than on a short term investment, which is a sign investors aren’t confident about the economy’s long-term future.
What’s worse is that every recession has been preceded by such an inversion.
There are two reasons.
Firstly, investments should be looked at as long term projects.
Any successful investor has ups and downs with their portfolios. Even with the longest and deepest recession since the wall street crash taking place between 2007 and 2008, most portfolios have still added significant value over the following 11 years.
Secondly, the digital landscape has completely changed since the last recession.
Investing in cryptocurrencyand other ways of making money onlineare now commonplaceand what’s more, they are recession-proof since they aren’t influenced by economic data the same way that bond and other traditional investments such as stocks are.
Cryptocurrency investments often provide the most stable returns despite the fact that they tend to be incredibly volatile commodities.
How you ask?
Those experienced in investing in cryptocurrency know how to take advantage of that volatility to extract profits from the various different cryptocurrency markets.
And although these cryptocurrency traders spend large portions of their day sat in front of computer screens making profits, traditional investors can still make a passive income by investing with managed services such as Cryptolico.
Cryptolico is made up of a team of those successful cryptocurrency traders mentioned above and a set of developers who have worked hard with those traders to produce a propriety machine learning algorithm that takes advantage of the volatility of cryptocurrency.
Investors funds are only traded using that algorithm 3 hours out of every 24 to take advantage of the spikes and troughs that occur during the normal trading day of multiple different cryptocurrencies.
Those funds are then transferred back and held in the US dollar-backed USDCoin.
The Crytpolico fund consistently achieves an increase of 0.11-0.15% per day, with returns averaging a cumulative 3.6% per month, often outperforming the Standard and Poors 500 index.
These levels of performance will continue regardless of an economic news or yield curve inversions, and will deliver these results even in the midst of a recession, due to the fact that cryptocurrency has no economic foundation.
If you think you are ready for consistent market-beating returns, make sure to get in touch withour team who areavailable 24/7 via live chatto discuss your options when it comes to investing in cryptocurrency.