[Delio Weekly Academy] Essential Economic Indicators to Secure Your Investment Portfolio during the Inflation | Lecture 6 & 7 Review

Unlike the world’s economy and the historical inflation, which is pushing the price of pretty much everything higher than it’s been in years, the cryptocurrency market, is rapidly moving in the opposite direction reaching new records daily. Alongside many new opportunities, the growing digital assets market has tested the investors’ portfolios’ strength.

Regardless of the market situation, economic indicators are some of the most valuable tools investors can place in their arsenals.

The past two episodes of Delio Weekly Academy, co-hosted with Korea’s top economists, attorney Jung Soo-Ho and economist Dongmin Lee, have brought to light how to secure the investment portfolio during the inflation crisis of the 21st century.

Delio Weekly Academy Episode 6

Security token offerings: essential market evolution indicator

Korea:

As the blockchain industry continues transforming the way fiat money is being pursued, governments worldwide are urgently seeking to regulate the industry with the legislation and the security token offering establishment.

Recently, South Korea announced that the Financial Services Commission would release a “Digital Asset Basic Act” draft to the People’s Power in November. In accordance with the common perception that the protection of investors is necessary worldwide, the law focused primarily on investor protection in Korea.

US:

The US Securities and Exchange Commission has strengthened restrictions on “security tokens,” digital assets that might be classified as “investment contracts” or other securities. Regardless of the issuer’s awareness, a security token may be issued “intentionally” after being tokenized by the issuer or “unintentionally” even if it is categorized as an investment contract under securities regulations.

Hong Kong:

In the meantime, Hong Kong, which recently announced plans to legalize retail crypto trading to become a hub, claims that security tokens can ‘revolutionize’ how Hong Kong, Greater Bay Area property developers fund mega projects highlighting the importance of enhancing the fintech environment, and how investing more capital in the sector is one of the government’s priorities.

Delio Weekly Academy Episode 7

Fear of an economic downturn

The synchrony with which central banks have been raising interest rates this year has not been witnessed in the previous 50 years, and this trend will probably go far into next year.

Despite the fact that an economic downturn is growing across the world, there is still opportunity.

According to the short-run look, the global economy is deteriorating quickly, with rapid recessions in the US and Europe and much slower growth in China in 2023. The economy may avoid a recession, but 2023 will likely change much below the trend at 2.1%.

Productivity gains will take on increased significance if these quantitative development drivers diminish, as they will be the main drivers of production and revenue growth.

The dollar index has risen more than 13% this year as the Fed has hiked rates at the fastest pace since the 1980s. According to analytics, in the long run, the coming year will show likely show that the US trade balance and fiscal deficit and the US dollar’s appreciation in crisis are skeptical about the reliability of the USD.

Bottom Line:

Hedge against inflation

Inflation is complex economic concept investors can benefit from with long-term investment in digital assets. While most traders look at timing the market, the investor’s best bet is the time! The longer the period of holding, the higher the gains.