Bonds and deposits predicted to fall out of favour this year
Bonds and deposits are forecast to decline in popularity this year, in favour of cryptocurrencies, stocks and peer-to-peer loans.
Analysts at European P2P platform Robo.cash studied eight assets using a variety of metrics including simplicity, entry threshold, five-year yield, risk assessment and growth outlook.
Cryptocurrencies took the first place in terms of attractiveness.
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“In our previous ranking for 2023, they were first from the end, which was not a surprise to anyone,” said Robo.cash analysts. “Gradually investors began to remember about Bitcoin halving 2024, and discuss the approval of spot bitcoin-ETFs. Such expectations led to the crypto market doubling in 2023, and in fact this is not the limit yet.”
Stocks and P2P lending were also ranked in the top three.
“The main driver of stocks’ growth in 2024 may be the ‘cooling’ of the monetary policy in the leading countries,” said Robo.cash. “The P2P sector shows a consistently good rate of return – 10.7 per cent at the end of 2023, which is much higher than bonds and deposits. We expect the market to set a new record in terms of volumes at a nominal rate above 10 per cent per annum.”
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In contrast, bonds and deposits were ranked as the least attractive assets. The analysts attributed this to the US regional banking crisis and an increase in bankruptcies in developed countries amid challenging macro conditions.
However, Robo.cash analysts said they were broadly positive about investment opportunities in 2024.
“Most likely, it will be possible to make money on any of the assets, which could not be said about 2023,” they said. “However, we should expect a reasonably tense geopolitical backdrop this year, which will largely affect all financial markets. And added to this is the still high risk of some assets, which is not going anywhere.”
Read more: P2P has place in “optimal” 2024 portfolios