PrimeXBT’s Kim Chua: Risk-on Appetite Is Back After Biden’s New Infrastructure Plan

Ever since March of last year, where most of the world’s markets crashed heavily on the realisation of Covid-19’s impact, the appetite for risky investment has been extremely low. Many have been waiting to see how the global economy recovers from the pandemic, and the signs are starting to show.

In the US, the powerhouse of trading and investment, there has been special attention paid to government policy in regards to the handling of the pandemic. The new Biden administration has put through a new stimulus plan, but also spelled out a new infrastructure plan that ranges in at $2.2 trillion.

US policies have already played their part with the markets, and as PrimeXBT analyst Kim Chua notes,after the hiccup regarding rising yields sending risk assets correcting lower, the markets are back to risk-on mode again after Biden announced his $2.2 trillion infrastructure plan.

This new spending will again be financial by USD printing, which will send the USD back lower and stop yields from rising. With yields stable at 1.67% and the US government having just given out $1.9 trillion in reliefs, this additional $2.2 trillion if approved, will not only cause optimism to spike, thereby shoring up risk assets, it will also fuel higher inflation, which will mean higher asset prices.

Employment is recovering, which means people will have more ability to spend. Earnings by companies will then increase due to increase in economic activities and higher spending by consumers. Either way, everything points to higher stock prices, and way higher crypto prices.

The S&P has already broken 4,000 on the back of this positive news and I see the stock markets a lot higher than they are now by September. For cryptocurrencies, the timing cannot be better for a $100,000 BTC and $3,000 ETH by that time.

The rise in traditional markets thanks to this risky appetite is of course pleasing, but it is further highlighted in the growth of cryptocurrencies. Still seen as incredibly risky and volatile, a bigger appetite should help bolster these digital assets in the coming months.


About Kim Chua, PrimeXBT Market Analyst:

Kim Chua is an institutional trading specialist with a track record of success that extends across leading banks including Deutsche Bank, China Merchants Bank, and more. Chua later launched a hedge fund that consistently achieved triple-digit returns for seven years. Chua is also an educator at heart who developed her own proprietary trading curriculum to pass her knowledge down to a new generation of analysts. Kim Chua actively follows both traditional and cryptocurrency markets closely and is eager to find future investment and trading opportunities as the two vastly different asset classes begin to converge.

The post PrimeXBT’s Kim Chua: Risk-on Appetite Is Back After Biden’s New Infrastructure Plan appeared first on Blockonomi.

28 thoughts on “PrimeXBT’s Kim Chua: Risk-on Appetite Is Back After Biden’s New Infrastructure Plan

  1. Heya i am for the first time here. I found this board and I find It truly useful & it helped me out
    much. I hope to give something back and help others like
    you helped me.

  2. I am really inspired with your writing abilities and also with the layout to your
    weblog. Is that this a paid subject matter or did you customize it yourself?
    Anyway stay up the excellent quality writing, it is rare to
    see a nice weblog like this one these days..

  3. Asking questions are in fact fastidious thing if you
    are not understanding something fully, but this post presents good
    understanding yet.

  4. Thanks for the marvelous posting! I definitely enjoyed reading it, you’re a
    great author.I will make certain to bookmark your blog and will often come back in the future.
    I want to encourage you to ultimately continue
    your great work, have a nice holiday weekend!

  5. My coder is trying to convince me to move to .net from PHP.
    I have always disliked the idea because of the expenses.
    But he’s tryiong none the less. I’ve been using Movable-type on a
    variety of websites for about a year and am concerned about switching to another platform.
    I have heard good things about blogengine.net. Is there a way I can transfer all my wordpress content into it?

    Any kind of help would be really appreciated!

  6. Have you ever considered publishing an ebook or guest authoring on other
    websites? I have a blog based on the same topics you discuss and would really like to have you share some
    stories/information. I know my audience would value your work.
    If you are even remotely interested, feel free to shoot me an email.

  7. Nice blog here! Also your site loads up fast!
    What web host are you using? Can I get your affiliate link to your host?
    I wish my web site loaded up as quickly as yours lol

  8. Nice post. I was checking continuously this blog
    and I am impressed! Very useful info specifically the
    last part 🙂 I care for such information a
    lot. I was seeking this certain info for a long time. Thank you and best of luck.

  9. fantastic post, very informative. I wonder why the other experts of this sector do not notice this. You should continue your writing. I’m sure, you have a huge readers’ base already!

  10. I’m really loving the theme/design of your blog.
    Do you ever run into any browser compatibility problems? A couple
    of my blog audience have complained about my blog not operating correctly in Explorer but looks great in Safari.
    Do you have any tips to help fix this problem?

  11. Good post. I learn something new and challenging on sites I stumbleupon on a
    daily basis. It will always be useful to read articles from other writers and use something from their web sites.

  12. I don’t know whether it’s just me or if everyone
    else experiencing problems with your blog. It appears as though some of the written text within your
    posts are running off the screen. Can somebody else please comment and let me know if this is happening to
    them too? This may be a problem with my internet browser because I’ve
    had this happen previously. Thanks

Leave a Reply

Your email address will not be published. Required fields are marked *