Market Action – This past week saw markets challenged by the prospect of rising taxation (Biden administration indicating taxes may rise significantly for the higher income earners echelons), concerns (Canada’s third wave triggering additional government imposed restriction/extension of lockdown duration in Ontario) regarding COVID-19 developments (and impact on the reopening of the economy) and worries about potential government intervention in the Bitcoin / cryptocurrencies world (related to tax worries, respectively combined with concerns regarding increased regulatory intervention/risk in crypto world).
Bitcoin – So … Bitcoin suffered biggest drop in apparently over a year (back to March 2020) this past week, taking with it (naturally, since it is the reference ETF providing access/exposure to it) the Purpose Bitcoin ETF click HERE! Back to below the levels it originated at back in the middle of February 2021.
Incidentally, in case you missed it, an interesting debate took place recently regarding bitcoin, courtesy of Stansberry Research this past week – with Daniela Cambone moderating a discussion between Frank Giustra (Founder LionsGate Entertainments amongst other things) and Microstrategy CEO Michael Saylor. The purported goal was to see whether Frank might ultimately be convinced to sell his gold and invest in bitcoin. If you missed it … Click HERE to replay! I can’t say I listened to the whole thing from start to finish … BUT, suffice to say there were some interesting arguments raised in the portion I did watch – all suggesting to me that Bitcoin is pretty much its own … “religion” … you either believe, or you don’t … and if you don’t … well, according to the Bitcoin evangelists out there, you are pretty much soon to join the herds of dinosaurs which populated the Earth a while back …
Anyways – for the FOMO crowds out there that wish they were in bitcoin but hadn’t pulled the trigger … there you go – here is an opportunity to not fear missing out IF/WHEN it next moves back up (if it does, which its history suggests it may, but which … well there is no guarantee it will, of course … except in the eyes of those either long, or part of the evangelising…).
Bubble / no Bubble – One of the non-evangelists: one Jeremy Grantham (GMO), who earlier made references to the crypto currency in an interview I came across recently, but which took place a little while back already. Worth listening to nonetheless, if you haven’t already => Click HERE! As far as words of caution regarding markets and the challenges ahead – again, definitely worth a listen. US stocks – in a bubble according to Jeremy … and the pain ahead … well it will be severe!
Gold – taking note of what I would call recent relative strength in Gold, I checked in via Twitter with Horizons ETF’s Brooke Thackray (HAC) – to see whether the seasonal strength often exhibited by Gold around late May / June happened to perhaps look like it might be kickin’ in early this year. Here is what Brooke kindly responded:
“After a pull-back since last August, a bounce is expected and gold could be starting its seasonal period early. Should be noted that gold can be volatile in May & June. Usually does not start a strong run in April. Last time(s) were in 2010&2011. Strong run throughout the year”.
Recent launches – Aside from recent long / inverse bitcoin ETFs, Horizons ETFs also launched a new ETF called Horizons Global BBIG Technology ETF. Let’s call this one a “Multi-themed” ETF – with the ticker BBIG reflecting exposures to Battery, biotech, internet and gaming. Read More => Click HERE!
The webinar featured Clean Edge Founder and MD Ron Pernick, with participation from First Trust Portfolios Canada’s Head of ETFs Karl Cheong, whose firm recently modified the investment mandates of their line-up of sectors ETFs to provide specific “thematic” exposures instead.
For our next webinar, scheduled for May 20, 2021 (12:00pm EST), we will be exploring 5G, again with First Trust sponsoring the webinar. Join us => Click HERE!
And, wrapping up for this week, a slide I kind of liked, courtesy of WisdomTree Head of Equity Strategy Jeff Weniger:
The slide is self-explanatory, but I figured I’d ask Jeff for some comment in terms of what he thought as far as how long this whole “leadership” realignment in the market could take. His answer: “depending on which metric you pick, you could argue that growth started beating value in 2006, with the dominance persisting through November 2020. With that as the guidepost, it is a distinct possibility that the six months of Value dominance so far could be just the start”.
Corporate news: CN Rail stepped up to disrupt CP’s Kansas City Rail takeover arrangement, which promises to alter the Rail landscape in North America. Who wins … time will tell obviously, and it the rationale for a deal is as compelling as both CP and CN seem to believe it to be … well, somebody may end up spending even more $$$.
Great story earlier today: Man sacrifices Tesla to come to the aid of another driver in Germany. Outcome? A live saved. A Tesla damaged … and Tesla’s boss Elon Musk, taking note of what had taken place stepping up to the plate by announcing that any repair to that good Samaritan’s Tesla was going to be “on the house”. Awesome!
Have a great week all!