Without a doubt, the second quarter was a tumultuous one for stocks and cryptocurrencies. The S&P 500 fell 16.1%, the Nasdaq 100 fell 22.7%, BTC fell 56.6% and ETH fell 67.5%. In June alone, BTC was down 38%, its worst calendar month ever.
Inflation and the policy response of the Federal Reserve were the most significant factors moving markets over the quarter. Stock and crypto markets moved lower as it became clearer that the Federal Reserve will need to increase interest rates substantially to tame the highest inflation in a generation. Within the stock market, growth stocks were hit the hardest, underperforming value stocks by about 9% over the quarter.
While all of those factors weighed on the macro environment, digital assets were faced with their own unique challenges. In May, we witnessed the collapse of Terra. Then, in the final weeks of the quarter many crypto companies faced liquidity and solvency issues.
View the complete market commentary and detailed performance of our strategies for the period April 1st through June 30th in our exclusive Q2 Investor Letter. Registered users can view the complete market commentary and detailed performance of our strategies in their inbox.
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* As of the time of this writing, Domain Money Advisors, LLC clients are invested in: BTC, ETH