Economic uncertainty, which peaked in the first half of 2022, “challenged investors to reconsider finance instruments in terms of risk-reward ratio,” according to an update from Robo.cash.
The analysts at Robo.cash recently commented on “popular” assets and how they have been performing since the beginning of the year and what returns they are promising investors.
Robocash specialists analyzed “the profitability of financial instruments against the backdrop of significant global events of the current year.” They used stock indices “for their calculations, as they reflect the aggregate average dynamics of the assets included in them.”
The largest increase in the first half of this year “was shown by natural gas (+107.8%).” It means that “if a hypothetical investor at the beginning of 2022 had decided to put $1,000 in natural gas, now he would already have $2,078 and a profit of $1,078.”
The top leaders in terms of profit also “include Brent oil (+39,3%) and Palladium (+15,6%). P2P investments are in fourth place.”
Cryptocurrency showed “the biggest decline in returns (-67.1%).” It was “represented in the analysis by the Bitwise 10 cryptocurrency index, which is 99% correlated with the entire crypto market.”
Robo.cash analysts further noted that the dynamics of these instruments “are most likely related to the Russian-Ukrainian crisis, which limited gas supplies to Europe.” The seasonality of the crypto market and the transition of Ethereum to the POS (Proof of Stake) algorithm in August 2022 “probably made their impact too.”
To determine the profitability of two or more assets at the same time, the growth rate formula was used, which “shows the ratio of the selling price of a portfolio of securities to the purchase price of a portfolio.”
The combination of NGAS, Brent oil, palladium, P2P, dollar index and deposits “has the highest return of over 23.8% in the first 7 months of 2022.” Cryptocurrencies and bonds together, according to experts, can “bring the greatest losses.”
It should be noted that “all the findings are based only on historical statistics, which, due to the unstable global economic and political situation, is unlikely to be repeated in the future.”
Robocash recommends having “a well-balanced, diversified portfolio that matches your goals and a plan for the unexpected events will help you succeed in investing.”