{"id":15893,"date":"2022-05-05T20:35:49","date_gmt":"2022-05-05T20:35:49","guid":{"rendered":"http:\/\/egrowonline.com\/?p=15893"},"modified":"2022-05-05T20:35:49","modified_gmt":"2022-05-05T20:35:49","slug":"rate-hikes-and-stock-sell-off-heres-what-it-means-for-your-retirement-portfolio-and-whether-you-should-add-crypto-into-it","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=15893","title":{"rendered":"Rate hikes and stock sell-off? Here’s what it means for your retirement portfolio, and whether you should add crypto into it"},"content":{"rendered":"


\n<\/p>\n

Hello! Welcome back to Distributed Ledger, our weekly crypto newsletter that reaches your inbox every Thursday. I\u2019m Frances Yue, crypto reporter at MarketWatch. Find me on Twitter at @FrancesYue_<\/a> to send feedback or tell us what you think we should cover. <\/p>\n

\n

I sat down with Jamie P. Hopkins, managing partner of wealth solutions at Carson Group to chat about what the Fed tightening means for retirement investments, and of course, his views on bitcoin.<\/p>\n

Crypto in a snap<\/strong><\/h6>\n

Bitcoin
\n BTCUSD<\/a>
\n lost 0.1% over the past seven days, trading at around $36.423 on Thursday, according to CoinDesk data. Ether
\n ETHUSD<\/a>
\n was up 0.6% over the seven-day stretch to around $2,738. Meme token Dogecoin
\n DOGEUSD<\/a>
\n logged a 2.7% loss while another dog-themed token, Shiba Inu
\n SHIBUSD,<\/span><\/a>
\n traded 6.7% lower from seven days ago. <\/p>\n

Crypto Metrics<\/strong><\/h6>\n\n\n\n\n\n\n\n\n
\n Biggest Gainers<\/strong><\/p>\n<\/td>\n\n Price<\/strong><\/p>\n<\/td>\n\n %7-day return<\/strong><\/p>\n<\/td>\n<\/tr>\n
\n TRON<\/p>\n<\/td>\n\n $0.08<\/p>\n<\/td>\n\n 31.7%<\/p>\n<\/td>\n<\/tr>\n
\n GateToken<\/p>\n<\/td>\n\n $6.55<\/p>\n<\/td>\n\n 6.6%<\/p>\n<\/td>\n<\/tr>\n
\n DeFiChain<\/p>\n<\/td>\n\n $4.49<\/p>\n<\/td>\n\n 4.4%<\/p>\n<\/td>\n<\/tr>\n
\n Litecoin<\/p>\n<\/td>\n\n $104.47<\/p>\n<\/td>\n\n 4.1%<\/p>\n<\/td>\n<\/tr>\n
\n PancakeSwap<\/p>\n<\/td>\n\n $7.84<\/p>\n<\/td>\n\n 3.5%<\/p>\n<\/td>\n<\/tr>\n
\n <\/td>\n\n <\/td>\n\n Source: CoinGecko as of May 5<\/em><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n
\n Biggest Decliners<\/strong><\/p>\n<\/td>\n\n Price <\/strong><\/p>\n<\/td>\n\n %7-day return<\/strong><\/p>\n<\/td>\n<\/tr>\n
\n Cronos <\/p>\n<\/td>\n\n $0.31<\/p>\n<\/td>\n\n -20.7%<\/p>\n<\/td>\n<\/tr>\n
\n ApeCoin<\/p>\n<\/td>\n\n $15.60<\/p>\n<\/td>\n\n -19.5%<\/p>\n<\/td>\n<\/tr>\n
\n Axie Infinity <\/p>\n<\/td>\n\n $32.97<\/p>\n<\/td>\n\n -14.4%<\/p>\n<\/td>\n<\/tr>\n
\n Filecoin<\/p>\n<\/td>\n\n $15.12<\/p>\n<\/td>\n\n -14.4%<\/p>\n<\/td>\n<\/tr>\n
\n Fantom <\/p>\n<\/td>\n\n $0.84<\/p>\n<\/td>\n\n -14.4%<\/p>\n<\/td>\n<\/tr>\n
\n <\/td>\n\n <\/td>\n\n <\/td>\n<\/tr>\n<\/table>\n
Stocks and Bonds <\/h6>\n

Rising interest rates \u201care not bad for retirees in general\u201d, Hopkins said in an interview. <\/p>\n

\u201cA lot of retirees are looking for higher bond yields, CD yields, fixed income yields. So if you haven\u2019t locked all that in, for near retirees, that can be a little bit better,\u201d Hopkins said.\u00a0<\/p>\n

Meanwhile, for people who stand right before retirement, \u201ca market downturn is actually like a better situation, which does feel counterintuitive,\u201d Hopkins said. \u201cAs good stuff goes down, you\u2019re more likely to get upswings through the next couple years of retirement or at least flat. And so you get a higher sustainable withdrawal rate,\u201d according to Hopkins.\u00a0<\/p>\n

Hopkins also said that despite the current macro environment, he prefers portfolios with rising equity portion through the retirement. When performing the Monte Carlo simulations, which model the probability of different outcomes, \u201cportfolios that spin down the bond portions of their allocation earlier in retirement, actually outperform fixed portfolios like 60-40 (60% in stocks, 40% in bonds) or decreasing equity portfolios,\u201d Hopkins said. \u201cAnd it doesn\u2019t mean you\u2019re buying more stocks, but you\u2019re just not spending them.\u201d<\/p>\n

Investing in bitcoin for retirement?\u00a0<\/strong><\/h6>\n

Though Hopkins said it is reasonable to allocate 1% to 2% of the portfolio in cryptocurrencies, he remains cautious. \u201cI think a lot of people are looking in that area for how do I take risks and generate more wealth? I kind of still sit on the side of the investment philosophies around it,\u201d Hopkins said.\u00a0<\/p>\n

Hopkins said he is concerned about the custody risks\u00a0of cryptocurrencies. He is also worried that many existing crypto projects may fail or be replaced by newer ones, as the ecosystem evolves. Looking back, as of February 2018, about half of initial coin offering projects launched in 2017 went bust, Fortune reported<\/a> at the time.\u00a0<\/p>\n

Even though the crypto industry has been maturing, it is still at a very early stage, Hopkins noted. <\/p>\n

\u201cI think the challenge to that though, is it leaves consumers, the mass, a sense of fear in five years, because they will have experience with stuff that basically disappears,\u201d Hopkins said. \u201cIf you just said like, go invest in the stock market, and in five years, half of that\u2019s going to be gone. How are consumers going to feel, right? They\u2019re gonna be a little fearful of the stock market,\u201d Hopkins said.\u00a0<\/p>\n

In addition, though Fidelity Investment plans to provide bitcoin offerings for the 401(k) plans it administers, the reaction from the U.S. Department of Labor could add to employers\u2019 concerns, according to Hopkins. <\/p>\n

The department issued a statement<\/a> cautioning plan fiduciaries to \u201cexercise extreme care\u201d before they considering adding a crypto option to a 401(k) plan\u2019s investment menu.<\/p>\n

Read: <\/strong>Bitcoin in your 401(k)? Fidelity just introduced it as an option \u2013 when it makes sense, and when it doesn\u2019t<\/a><\/p>\n

Fidelity \u201cis gonna make it available, but you still have to have a fiduciary investment committee sign off on it. That\u2019s a lot of risk because if something goes wrong, the Department of Labor has told you to use extreme caution. It\u2019s not a good look, right?\u201d Hopkins said. <\/p>\n

SEC\u2019s crypto\u00a0<\/strong>unit <\/h6>\n

What adds to the regulatory headwinds for crypto is the latest move by the U.S. Securities and Exchange Commission. The agency said Tuesday that it has almost doubled the positions for its cyber unit and has renamed it <\/a>as \u201cCrypto Assets and Cyer Unit,\u201d according to a statement. <\/p>\n

The unit will have 50 positions, up from 30, and is now responsible for\u00a0 \u201cprotecting investors in crypto markets and from cyber-related threats,\u201d according to the statement. <\/p>\n

Binance backing Musk\u2019s bid <\/h6>\n

Binance, the world\u2019s largest crypto exchange, has agreed to contribute $500 million<\/a> to support Elon Musk\u2019s pending acquisition of Twitter<\/a>\u00a0for $54.20 a share, or about $44 billion, MarketWatch\u2019s Emily Bary reported.<\/p>\n

Twitter\u2019s board of directors accepted Musk\u2019s bid to buy the company in an April 25 agreement. The deal is subject to shareholder and regulatory approvals.<\/p>\n

Crypto companies, funds<\/h6>\n

Shares of Coinbase Global Inc<\/strong>.
\n COIN<\/a>
\n plunged 11.6% to $115.05 on Thursday. It has fallen 6.2% over the past five trading sessions. Michael Saylor\u2019s MicroStrategy Inc.<\/strong>
\n MSTR<\/a>
\n lost 13.1% Thursday to $318.91, while it was down 20.4% over the past five days.<\/p>\n

Mining company Riot Blockchain Inc.<\/strong>
\n RIOT<\/a>
\n shares were down 12.2% to $10.16, and it was down 7% over the past five days. Shares of Marathon Digital Holdings Inc.<\/strong>
\n MARA<\/a>
\n lost 11.6% to $15.70, with a 6.7% loss over the past five days. Another miner, Ebang International Holdings Inc<\/strong>.
\n EBON,<\/span><\/a>
\n lost 16.5% to $0.85, with a 9% loss over the past five days.<\/p>\n

Overstock.com Inc.<\/strong>
\n OSTK\u2019s<\/span><\/a>
\n shares were down 8.3% to $35.86. The shares have gained 11.1% over the five-session period.<\/p>\n

Shares of Block Inc.<\/strong>
\n SQ,<\/span><\/a>
\n formally known as Square,\u00a0tanked 10.4% to $95.70, with a 8.5% loss for the week. Tesla Inc<\/strong>.
\n TSLA\u2019s<\/span><\/a>
\n shares lost 7.6% to $879.91 while its shares gained 0.3% for the past five sessions.<\/p>\n

PayPal Holdings Inc.<\/strong>
\n PYPL<\/a>
\n declined 8% to $85.33, and it was down 7.4% over the five-session stretch. Nvidia Corp.<\/strong>
\n NVDA<\/a>
\n lost 7.6% to $187.9, while was looking at a 5.1% loss over the past five trading days.<\/p>\n

Advanced Micro Devices Inc.<\/strong>
\n AMD<\/a>
\n dropped 5.5% to $93.99 on Thursday, while it was up 4.7% from five trading days ago. <\/p>\n

Among crypto funds, ProShares Bitcoin Strategy ETF<\/strong>
\n BITO<\/a>
\n went down 8.7% to $22.72 Thursday, while Valkyrie Bitcoin Strategy ETF<\/strong>
\n BTF<\/a>
\n was down 8.6% to $14.1. VanEck Bitcoin Strategy ETF<\/strong>
\n XBTF<\/a>
\n lost 9.5% to $35.30. <\/p>\n

Grayscale Bitcoin Trust<\/strong>
\n GBTC<\/a>
\n traded down 8.9% to $25.32. <\/p>\n

Must Reads<\/h6>\n<\/p><\/div>\n


\n
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Hello! Welcome back to Distributed Ledger, our weekly crypto newsletter that reaches your inbox every Thursday. I\u2019m Frances Yue, crypto reporter at MarketWatch. Find me on Twitter at @FrancesYue_ to send feedback or tell us what you think we should cover. I sat down with Jamie P. Hopkins, managing partner of wealth solutions at Carson […]<\/p>\n","protected":false},"author":1,"featured_media":15894,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[39],"tags":[962,62,164,458,1661,1817,830,1458,251,593],"class_list":["post-15893","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ico","tag-add","tag-crypto","tag-heres","tag-hikes","tag-means","tag-portfolio","tag-rate","tag-retirement","tag-selloff","tag-stock"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/05\/1651782947_social.jpeg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/15893","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15893"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/15893\/revisions"}],"predecessor-version":[{"id":15895,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/15893\/revisions\/15895"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/15894"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15893"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}