The chief global strategist at JPMorgan Asset Management is reportedly warning investors to avoid Bitcoin (BTC) as the threat of a recession looms.
In a new Bloomberg report, David Kelly says that there’s a high risk of recession and further volatility.
“The economy has got one foot into a recession and the other on the banana peel now.”
Kelly’s comments come after U.S. Federal Reserve Chairman Jerome Powell gave a speech at the Fed’s annual meeting that rattled markets last Friday. Powell said that the Fed’s primary goal is bringing inflation back down to 2% and therefore does not plan to lower interest rates in the short term.
“The Federal Reserve is overestimating the strength of the US economy as it feels guilty about the fact that inflation went up under their watch.”
The JPMorgan strategist also predicts the economy will feel “more normal” by the end of 2023. He suggests staying away from Bitcoin and large-cap tech stocks. He also advises selling crypto.
“Make sure you overweight US and international value, as well as stocks with relatively low price-to-earnings ratio.”
Bitcoin is trading at $20,341 at time of writing. The top-ranked crypto asset by market cap is flat on the day and down nearly 7% in the past seven days.
Read the full Bloomberg story with Kelly here.
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