Jeffrey Gundlach, the wealthy financier renowned as the 'Bond King,' foresees an unconventional asset class leading the way in returns this year, driven by Federal Reserve interest rate reductions.
In a series of predictions, DoubleLine Capital CEO Jeffrey Gundlach has stated that he expects the Federal Reserve (Fed) to cut interest rates multiple times in 2025. This assertion is based on a revision by the Bureau of Labor Statistics (BLS) that showed a combined 258,000 decrease in May and June job growth.
The potential ease in U.S. monetary policy, as signified by these anticipated rate cuts, is expected to have a significant impact on equities trading outside the U.S. stock market. Gundlach believes that easier monetary policy in the U.S. will fuel a rally in global risk assets, especially outside the U.S. He expects a softer U.S. dollar and a steepening Treasury curve to contribute positively to international equities, implying a favorable environment for non-U.S. markets as the Fed lowers rates.
Goldman Sachs shares a similar view, predicting that a Fed rate cut will trigger FOMO rallies in the European stock market. The weakening dollar, as a result of Fed rate cuts, is expected to benefit dollar-based investors in some other places.
Meanwhile, the cryptocurrency sector is also seeing some significant developments. The BYDFi Card officially launched on August 7, aiming to seamlessly bridge Web 3.0 assets and real-world spending. Solid also launched on Fuse Network, offering decentralized banking for normies. Dreamcash began the rollout of its trading platform with Hyperliquid Integration via Waitlist Access.
In another development, Plume and Mercado Bitcoin aim to tokenize $500 million real-world assets, driving RWA adoption across Latin America. Little Pepe's Memecoin Presale reached $16,475,000, with Stage Nine sold out.
However, it's important to note that the cryptocurrency market remains volatile, and investors should exercise caution. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is it an investment advisor. The Daily Hodl participates in affiliate marketing.
On the other hand, cybercrime continues to pose a threat. A report identified 200,000 potential victims as malware disguised as legitimate apps crack bank accounts, and a 63-year-old woman was arrested for stealing bank information, printing fake IDs, and draining $26,000 from bank accounts across three states.
In the AI sector, CARV's AI Stack is being used by builders to prove what's possible. Caldera announced a partnership with EigenCloud to integrate EigenDA Version Two.
As we move forward, it will be interesting to see how these developments unfold and how they impact various markets. Stay tuned for more updates.
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- The expected interest rate cuts by the Federal Reserve in 2025 might stimulate investments in cryptocurrency, as easier monetary policy in the U.S. could potentially fuel a rally in global risk assets, creating a favorable environment for altcoins.
- The launch of new cryptocurrency-related products, such as the BYDFi Card, Solid on Fuse Network, and Dreamcash's trading platform, could contribute to the growth of the blockchain and cryptocurrency industry in the business world.
- As the cryptocurrency market remains volatile and vulnerable to cyber threats, investors should exercise caution when engaging in cryptocurrency investing, ensuring proper security measures are in place to protect their digital assets.
