JP Morgan advises betting on alternative assets next year
21:51
The so-called alternative assets, which also include digital currencies, private debt, and private equity funds, should continue to do better than the market in 2022, experts from JP Morgan, the largest American bank forecast. They estimate their return next year at 11 percent, against 5 percent of stocks and bonds.
At the same time, JP Morgan strategists make a reservation that although cryptocurrencies may become more expensive, the volatility of their quotations is too high to recommend them as basic assets. They give bitcoin as an example. JP Morgan considers it a competition to gold. They also indicate that taking into account that bitcoin has four times greater volatility of quotations than the gold quotations, according to the JP Morgan model, the fair value of the cryptocurrency is approx. $35,000. If the relative volatility was halved next year, they considered it "reasonable" to increase the target price to $73,000. On Tuesday, bitcoin is traded at approx. $64,000.
"Digital assets are in long-term structural growth, but the current entry point seems unattractive," JP Morgan strategists said.
