Investing in non-fungible tokens and the DeFi market

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By Prof Louis C H Fourie

The year 2020 brought many surprises. The incredible fast spreading of the COVID-19 virus across the world, the economically disruptive lockdowns, the large government stimulus packages, and the unequalled fast recovery of the stock market since the crash that started on February 20, 2020.

In March 2020, the lockdown of almost half the world’s population thrust the global economy into an unprecedented recession, and global stock markets shed 34% in thirty days.

Although they bounced back strongly after the announcement of government measures (gradual exit from lockdown, economic stimulus policies, extended unemployment assistance, and the development of vaccines), the short-term environment remains uncertain.

Recently, scientists have been warning of a third and even a fourth wave of the virus while countries are racing with their vaccination programmes. Add to this, the current high levels of unemployment, significant slack in the economy and the labour market, the possibility of harmful inflation, a possible asset price bubble, and the perfect storm of uncertainty has been created.