Robocash: P2P market poised to rival S&P 500 in returns

Peer-to-peer (P2P) lending is predicted to offer the most attractive real returns among fixed-income instruments by the end of 2024, and may overtake the S&P 500 index, according to analysts at Robocash.

The Croatia-based P2P lending platform said people that invested in P2P in late 2023 or early 2024 will earn approximately 6.7 per cent per annum net of inflation in US dollars at the end of the year.

“This value is dozens of times higher than, for example, in the case of bonds or deposits,” the lending platform said.

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The lender highlighted that the European Central Bank has kept deposit and bond rates flat at 4.5 per cent for seven months and is likely to start lowering it towards the end of the year.

If the predictions come true, P2P investments will overtake the S&P 500 with dividends, which experts estimate will give a 6.1 per cent return.

Сryptocurrency and the commodity market are already showing strong performance. Robocash analysts assume that by the end of 2024, the total capitalisation of all traded cryptocurrencies will be at between $7.5trn (£6.03trn) and $8trn.

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“We also estimate that the commodities market will grow by 25 per cent when adjusted for EU inflation,” the analysts added. “But we realize that these are just market expectations, which are built taking into account a number of factors such as inflation, interest rate parity, etc. As we know, cryptocurrency and commodity markets can experience sharp price fluctuations, so investing in them should be done with caution”.

The Robocash platform itself is currently advertising target investor returns of 11.8 per cent per annum.

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