How Fixed Returns Can Protect Your Portfolio Amid the Bloodbath

Who are you to disagree with Frank Sinatra?

It’s an ugly one out there.

The stock market is off to its worst start to a year since 1939, while April was the reddest month for equities since October 2008. You know whenever the phrase “since October 2008” is used in finance that it’s not going to be pretty.

That’s before we even mention the Luna turmoil, with the UST collapse unlike anything we have seen before.

Diversification

But hey, what a time to be in stablecoins (safe ones, at least - hah). It’s times like these that hammer home how vital portfolio allocation is. This is exactly what SuperBonds offers bondholders - a fixed, risk-free yield denominated in USDC.

As Frank Sinatra once sang:

“The market outside is frightful, but my stablecoins are quite delightful”

The hunt for a fixed yield is a sector of the market that has been heating up recently, as investors go risk-off in response to the carnage. Indeed, this is partially why the Anchor system within Terra was so popular, offering a fixed yield of 19.5%. Of course, let’s just say that was unsustainable and leave it that.

Twitter is no longer awash with screengrabs of 1000x returns via obscure alt-coins, nor do you see as many paid promoters shilling unknown gambles. The phrase “up-only” has seemingly fallen out of use. It’s a bloodbath out there, with people doing whatever they can to preserve their portfolios.

The economy is cyclical, as it has been throughout human history, and right now we are squarely in a downtrend. It’s just the market’s latest demonstration of how important diversification and responsible portfolio allocation is.

Narratives

A product yielding safe, fixed and sustainable interest definitely isn’t as sexy as some other assets out there. But investing is about making money, not about flexing to anons on Twitter. It’s an area where cryptocurrency still shows its youth, compared to established financial asset classes.

Many crypto enthusiasts have only ever experienced a bull market, until now. Bear markets humble you, and teach you valuable lessons. Nearly half of investors currently active entered the space in the last two and a half years, when even a chimpanzee in a zoo could have picked a profitable asset to invest in.

Many are now wishing they had been more responsible, with several alt-coins down 90%+ from all-time highs, with even Bitcoin down over 50% from its peak.

Dollar Strength

Another thing which has benefitted those holding the right kind of USD stablecoins is the immense strength of the dollar. The USD Index, which measures the strength of the dollar against a basket of foreign currencies.

Currently, up 6.5% this year, it’s provided a little bit of sweetener on top of those protected by stablecoins.

In conclusion, it’s important to practice prudent portfolio allocation, in order to position oneself best to generate returns in the long run. SuperBonds is one such platform which offers this - a sustainable, risk-free fixed yield that allows investors to diversify their portfolio, manage their risk and earn passive income.

What we are seeing now is no different from any other point in history - markets can go down, as well as up - and that will never change.

Stay safe out there, frens.