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Monday, May 10, 2021
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Investing Today is Not a ‘Zero Sum’ Game

#investing #stocks #metals #currencies

$DIA $SPY $QQQ $RUTX $XAU $GLD $BTC.X $ETN $VXX

Nothing is 1 dimensional in our multi-faceted investment universe“– Paul Ebeling

For the past 15 yrs the majority of our investment decisions have been non-zero-sum considering the trillions that comprise the global capital markets that we participate in. 

Example: Crypto’s gains are gold’s losses. The impulse bring the decision to either/or comes with a costly lesson, that is; your money.

Our approach is this: a prudent asset mix considers the maximum return for the lowest level of volatility.

And in the case of gold and crypto, each fulfils a complementary asset function as a repository of value in a global context of uncertainty and coming inflation.  

The gold market is estimated at over $11-T, which reflects a 2,500yrs as a globally recognized medium of exchange and value.

The Bitcoin market has a cap of about $1-T.

The amount of physical gold held by central banks and investors equates to many times bitcoin’s current market. In 2020, gold’s average daily volume was $125-B, or 30X bitcoin’s daily volume of $4-B, both assets have very liquid markets, so there is space for both crypto and gold to flourish.

That being the case, we do not see crypto and gold as competitors, but consider crypto as the legitimate now gold-like asset with these common markers. They both have low correlation to other families of assets, and they are inflation–sensitive, great diversifiers and alternatives to fiat (paper) issues. Gold is reliable and secure store of value, and crypto is a new and growing store that reacts quickly but lacking gold’s longevity.  

Young investors worldwide have taken to the crypto bandwagon because they can carry the asset with them in their pockets, which might create the impression that gold is yesterday’s mashed potatoes, it is not, as people accustomed to buying gold are only now considering and buying crypto.

Economist Bruce WD Barren notes: “Gold is a depleting asset while crypto-currency is not but not so for the US Dollar which Congress and our current Administration are taking a pork barreled  legislation attitude. That is why both gold and crypto-currency are good investments, especially in light of the US Government’s mixed fiscal policies, including uncontrolled deficit and irrational spending. In the short and long-term, both offer excellent investment opportunities, depending on the size and needs of your balanced investment portfolio.

As believers in both gold and crypto, DeFi, we see gold back at its $2,200 highs and beyond. But that does not mean investors should not diversifying into other asset classes i.e. crypto.

We are and have been seeing clear indications of growing inflation, much more so than the Feds would have consumers believe, and as governments continue to print money, it will continue due North.

The Big Q: What does that mean?

The Big AL That means the price of gold, bitcoin, Ethereum and DeFi (critically decentralized finance) will all benefit. 

We here at HeffCap have all of the tools for qualified investors outside the US to participate in all financial markets worldwide 365-24/7

Tuesday, the benchmark US stock market indexes finished at: DJIA -256.33 to 33821.30, NAS Comp -128.50 to 13786.29, S&P 500 -28.32 to 4134.94

Volume: Trade on the NYSE came in at 879-M/shares exchanged

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Very Bullish in here a the market consolidates its recent big gains.

  • Russell 2000 +10.8% YTD
  • DJIA +10.5% YTD
  • S&P 500 +10.1% YTD
  • NAS Comp +7.0% YTD

Looking Ahead: Investors will the weekly MBA Mortgage Applications Index and the weekly EIA Crude Oil inventory report Wednesday.

Have a healthy day, Keep the Faith!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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