HSBC Advises Investors to Favor Equities Amid Stable U.S. Growth

HSBC has recommended investors adopt a risk-on approach, emphasizing equities and high-yield assets while reducing exposure to sovereign bonds and oil. According to NS3.AI, this strategy is based on expectations of stable U.S. growth and controlled rate volatility. The U.S. dollar's recent multi-year low prompts questions about Bitcoin's behavior, as it can function either as a high-beta risk asset or a liquidity hedge, contingent on market conditions. Current data reveal that Bitcoin's returns have a strong correlation with equities but not with the dollar, suggesting that Bitcoin's future movement will rely on the continuation of a risk-on and low volatility environment.