Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

Consider reducing exposure to US stocks and Bitcoin, this analyst says

admin by admin
December 4, 2024
in Stock
0
Consider reducing exposure to US stocks and Bitcoin, this analyst says
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

Investing.com — Investors should consider paring down their positions in US equities and Bitcoin, according to a market commentary from US Tiger Securities, Inc.

While the US economy shows stability, the firm warns that elevated valuations and rising risks make these assets less attractive heading into 2025.

The firm said the CAPE (Cyclically Adjusted PE Ratio) ratio for US stocks has surpassed its 2021 highs, nearing levels last seen during the dot-com bubble.

Historically, such valuations are sid to have signaled heightened correction risks. The firm says that for example, in the early 2000s, the S&P 500 fell by over 50% from its peak and took seven years to recover.

While it’s impossible to predict whether 2025 will bring a correction or continued gains, the commentary firm notes that probabilities no longer favor investors.

They explain that the risks are compounded by potential policy uncertainties under the incoming administration, such as aggressive tariff measures, immigration policies, and the impact of the strong dollar on US exports.

Additional geopolitical and macroeconomic concerns, including Japan’s rate hikes and global retaliatory measures, further cloud the outlook.

Bitcoin, which has soared above $90,000, faces similar challenges. US Tiger Securities says that realized profits from Bitcoin sales have hit historic highs, a pattern typically associated with market peaks.

Furthermore, they believe a significant sell-off by long-term holders and heightened FOMO (fear of missing out) sentiment signal potential exhaustion in the current rally.

“Reducing positions now might be prudent,” the firm advises, noting the deteriorating risk-reward profile for both US equities and Bitcoin.

“With market uncertainty rising, the risk-reward profile is less attractive,” says Tiger Securities. “The current sell-off rate is approaching March’s levels, further supporting the notion that Bitcoin may have topped.”

This post appeared first on investing.com

Previous Post

PSQ Holdings shares dip on stock offering following Trump Jr. board addition

Next Post

European stocks climb as French no-confidence vote looms; Indian PSU banks lead gains

admin

admin

Next Post
European stocks climb as French no-confidence vote looms; Indian PSU banks lead gains

European stocks climb as French no-confidence vote looms; Indian PSU banks lead gains

Trending News

European shares rise on tech and resources; France’s politics weigh, DAX 40 outshines

European shares rise on tech and resources; France’s politics weigh, DAX 40 outshines

December 3, 2024
Firefighters gaining control over devastating wildfire near Los Angeles

Firefighters gaining control over devastating wildfire near Los Angeles

November 9, 2024
Long IDXX: IDEXX Laboratories Breaks Out After Strong Earnings, Eyeing $510 Resistance

Long IDXX: IDEXX Laboratories Breaks Out After Strong Earnings, Eyeing $510 Resistance

February 4, 2025
Subscribe to Insightful Word


    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025
    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    June 26, 2025
    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    June 26, 2025

    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025

    Latest News

    • S&P 500 nears record high despite headwinds: key drivers behind the surprise rally
    • Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high
    • S&P 500 nears record high as Wall Street opens higher amid tech momentum

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.