Cryptocurrency sell-off flags U.S. inflation fears
The Hindu
Investors are paring their risk appetite
A sell-off in cryptocurrencies, high-growth stocks and other high-flying assets may be signalling a more cautious outlook among market participants after a stretch of rampant exuberance, investors and analysts said. Few believe the bull run that broader U.S. stock markets have experienced over the past year is set for a reversal. Still, concerns are growing that a looming rise in inflation combined with a potential peak in U.S. economic growth could force investors to cut down on risk in their portfolios, hurting many of the assets that shot higher earlier this year. “Higher-risk assets, whether in the form ... of cryptocurrencies or the more speculative growth stocks, are seeing their multiples taken down markedly as investors begin to reassess what impact the potential for inflation will have,” said David Mazza, managing director at Direxion.More Related News