graphic courtesy of macrotrends.net
Without a doubt, there are those that have considered the high inflationary environment a time to make more aggressive investments. With the governments response to the covid virus we are seeing the highest inflationary rate since 1980.
In 1978 the Fed's increased rates by 20%, then in 1979 and 1980 we faced the highest rates of inflation in 60 years and went into a recession. If the Fed's raise rates too high they will with certainty cause another recession, yet they state rate increases are on the way.
Note that in 1976-1978 we experienced good GDP growth and in 1983 GDP was again good. This suggests a 2-3 year window in which inflation jump starts the economy.
graphic courtesy of thebalance.com
The Fed's are running more of a bluff to raise rates to bring stability to the economy. They just won't do it to an extreme because they no full well that it will cause a nasty recession. Inflation is not going to decrease dramatically anytime soon.
With little relief from inflation, more aggressive investments will still look attractive and that includes cryptocurrency. China and Russia's stance on cryptocurrency, however, has not been favorable. Yet, the most impactful decision on regulation will come from the United States with information coming as soon as February. Unfortunate for bitcoin holders, countries are considering have their own digital currency known as CBDC or central bank digital currency.
If bitcoin, tech stocks, and real estate are overpriced where do investors go? The only certain thing is that investors will not let their money turn into nothing because of inflation.
These are my opinions and I am not a financial advisor.