Macro Markets, hosted by crypto analyst Marcel Pechman, airs every Friday on the Cointelegraph Markets & Research YouTube channel and explains complex concepts in layman’s terms, focusing on the cause and effect of traditional financial events on day-to-day crypto activity.
This week’s show starts by discussing the mutual fund industry, including the well-known BlackRock, Fidelity and Vanguard, and how the top 15 asset managers handle over $54 trillion. Can you believe it? That money could buy all the companies listed in the S&P 500 Index, plus all the gold, fiat bills and coins in circulation on the planet.
Pechman explains how the $120 trillion managed by these mutual funds relies heavily on fixed income and why it remains their top bet despite paying below inflation for the past three years. Moreover, the show discusses how passive investment strategies might catapult Bitcoin (BTC) into a whole other sphere, instantly gaining adoption among institutional investors.
The next segment of Macro Markets answers a question from “Film City,” who posed a question in last week’s YouTube video comments. Pechman explains why the 40-year low unemployment rate in the United States is not necessarily bullish for risky investments. On the other hand, the analyst illustrates how an increase in the unemployment rate, especially above 10%, is certainly detrimental to cryptocurrencies.
The show concludes by examining the U.S. credit default swap (CDS) rates, which recently reached an 11-year high. Those insurance instruments activate if the debt issuer fails to honor their payments — in this case, the U.S. government Treasury. Pechman explains why the U.S. CDS is not worrisome at the moment and how one should analyze specific risks to the U.S. dollar currency.
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