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Tag: Equities

  • Looking back at 2025: Equities | Insights | Bloomberg Professional Services

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    How did U.S size and style leadership evolve in 2025? 

    Prediction: Large caps could outperform small caps, mirroring 2017, where easing regulatory expectations initially boosted smaller companies before rate dynamics reasserted themselves. 

    Outcome: Right 

    The B1000 Index is up 17% this year, outpacing the B2000 Index’s 14% gain. Market moves in the US have largely been the result of strong gains in some of the largest names such as the Magnificent 7.  

    Prediction: Growth could continue to outpace Value, as it did in 2017. 

    Outcome: Right 

    The B1000 Growth Index advanced 17.3%, beating the B1000 Value Index at 16.9%. The equity style leadership pattern from 2017 repeated, with investors rewarding earnings durability and high-quality balance sheets throughout bouts of market volatility. 

    Which sectors and innovation themes led the market in 2025? 

    Prediction: Materials might benefit from tariff dynamics, similar to the strong performance from that sector in 2017. 

    Outcome: Wrong 

    Instead of leading, the Materials sector lagged. The Bloomberg 500 Materials (B500MA) Index returned just 11.3%, trailing the broad B500, while Communications (B500C) was the standout at +33.3%. Tariff expectations and industrial-metal dynamics did not repeat the 2017 pattern, underscoring the importance of distinguishing between tariff speculation versus tariff implementation. 

    Sector & Theme Predictions in 2025

    Which innovation themes led or lagged equity markets in 2025? 

    Prediction: Solar, digital finance, and broader innovation-driven themes could experience strong performance—reflecting their 2017 surge.

    Outcome: Mixed to Right

    • Solar (BSOAP): Right. Up 33.9%, closely tracking 2017’s strong results. Even though the underlying solar industry still faces challenges, investors responded to both positive catalysts and changing expectations throughout the year.  
    • Future of Finance (BFFAP): Right. Up 46.1%, echoing 2017’s structural-disruption enthusiasm. Many crypto linked stocks, such as Robinhood and Cipher Mining, have benefited from increased regulatory clarity and stronger investor participation in digital asset markets. 
    • Digital Payments (BDPAP): Wrong. While the index is up 15.8% this year, it trailed global equities. Payment companies have been under antitrust scrutiny and litigation over swipe fees and merchant network practices. Some investors also viewed the loosening of crypto regulations as increasing the risk of disruption to traditional card payment models. 
    Bloomberg 500 Sector Returns for 2025

    Which global regions led equity performance in 2025? 

    Prediction: Despite early selling pressure, Emerging Markets could ultimately outperform—just as it did in 2017— raising questions on whether trade-war fears were overstated. 

    Outcome: Right

    Both the Bloomberg Emerging Market (EM) Index and the Bloomberg China (CN) Index outperformed the B500 by over 10%. Even developed markets (DM Index) beat the U.S. by 2.5%. Fears of renewed trade tensions proved excessive, much as they did in 2017. Moreover, with U.S. equity concentration remaining a key concern for many investors, demand for additional portfolio diversification has strengthened. In fact, of the 47 countries included in the Bloomberg World Index (WORLD), only 5 produced negative returns in 2025.  

    Global Outlook Predictions in 2025

    How did currency movements influence equity returns in 2025? 

    Prediction: In 2017, the dollar weakened against other major currencies, as many investors were concerned about U.S. fiscal and monetary policy. 

    Outcome: Right 

    The DMXUHU (hedged) Index gained 20.5%, trailing the unhedged DMXUN Index at 28.1%. Even with post-election dollar strength (+4% vs EUR, +3% vs JPY and GBP), the return benefit of foreign-currency exposure mirrored the pattern seen in 2017’s weaker-dollar environment. Uncertainty related to U.S. fiscal policy has left some investors less inclined to hold dollar assets. 

    Global Equity Returns in 2025

    Which equity factors mattered most in 2025? 

    Prediction: Companies with strong fundamentals either through core-earnings strength (BCORE) or disciplined capital returns (BSHARP) would attract greater investor interest. 

    Outcome: Mixed 

    The market leaders of 2024 largely maintained their strength into 2025, resulting in a strong year for the momentum factor. Although conventional factor-based methods outside of momentum offered limited excess return, some alternative or updated factor approaches demonstrated more meaningful results. 

    • BCORE: Right. Up 27.0%, confirming that investors rewarded earnings resilience in a volatile environment. The index consists of names like Applovin, which reported strong financial results, with big year-over-year revenue growth and expanding profitability.
    • BSHARP: Wrong. While the index is up 9%, its muted relative performance may reflect investors preference for higher growth names over dividends and buybacks. 
    Factors to Watch in 2025

    U.S. Equity Long-Only Factor Returns for 2025

    As 2025 draws to a close, markets have rewarded investors who recognized the familiar rhythms reminiscent of 2017, a period where patience, discipline, and thoughtful thematic positioning proved their worth. 

    What will 2026 bring for equities? Will leadership finally broaden? Will investors grow more confident in an environment where moderate growth and steady policy can support continued returns? And will security selection and thematic exposure regain prominence as dispersion picks up? Look out for our 2026 equity outlook in January, where we will weigh these questions and highlight the themes that are poised to shape the year ahead. 

    Learn more about Bloomberg Equity Indices here. 

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  • Mapping AI exposure through rules and reason | Insights | Bloomberg Professional Services

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    As AI dominates headlines, who’s really building it? We explore how a rules-based framework distinguishes companies materially engaged in AI development and deployment from those merely adopting the technology.

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  • Can the AI workhorses carry the world’s markets – yet again? | Insights | Bloomberg Professional Services

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    The data included in these materials are for illustrative purposes only. The BLOOMBERG TERMINAL service and Bloomberg data products (the “Services”) are owned and distributed by Bloomberg Finance L.P. (“BFLP”) except (i) in Argentina, Australia and certain jurisdictions in the Pacific Islands, Bermuda, China, India, Japan, Korea and New Zealand, where Bloomberg L.P. and its subsidiaries (“BLP”) distribute these products, and (ii) in Singapore and the jurisdictions serviced by Bloomberg’s Singapore office, where a subsidiary of BFLP distributes these products. BLP provides BFLP and its subsidiaries with global marketing and operational support and service. Certain features, functions, products and services are available only to sophisticated investors and only where permitted. BFLP, BLP and their affiliates do not guarantee the accuracy of prices or other information in the Services. Nothing in the Services shall constitute or be construed as an offering of financial instruments by BFLP, BLP or their affiliates, or as investment advice or recommendations by BFLP, BLP or their affiliates of an investment strategy or whether or not to “buy”, “sell” or “hold” an investment. Information available via the Services should not be considered as information sufficient upon which to base an investment decision. The following are trademarks and service marks of BFLP, a Delaware limited partnership, or its subsidiaries: BLOOMBERG, BLOOMBERG ANYWHERE, BLOOMBERG MARKETS, BLOOMBERG NEWS, BLOOMBERG PROFESSIONAL, BLOOMBERG TERMINAL and BLOOMBERG.COM. Absence of any trademark or service mark from this list does not waive Bloomberg’s intellectual property rights in that name, mark or logo.

    All rights reserved. © 2025 Bloomberg.

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  • What’s powering the European ETF expansion? | Insights | Bloomberg Professional Services

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    As ETF launches proliferate, innovative structures are emerging—such as buffer funds that use derivatives to mitigate the impact of market downturns, active ETFs replicating the strategies of star managers like Nouriel Roubini, FundStrat’s Tom Lee, BlackRock’s Rick Rieder, and GMO’s Jeremy Grantham, as well as triple-leveraged ETFs and ETFs investing in alternative assets like cryptocurrency and private markets.

    Balchunas notes that growth in the crypto space has been especially explosive. “BlackRock’s iShares Bitcoin Trust ETF attracted $70 billion in assets in 341 days. It’s the fastest-growing ETF ever to exist,” he says. “BlackRock already is the second biggest holder of Bitcoin on planet Earth, but by 2026, they’re going to have more Bitcoin than Satoshi, the founder of Bitcoin.”

    Digital distribution and retail adoption

    Retail adoption of ETFs remains lower in Europe than in the U.S., but the gap is closing quickly. German savings plans have fueled widespread retail participation, with ownership growing by 33% in the past year and spreading into new markets. The number of savings plan accounts outside Germany more than doubled from 2023 to 2024. Julius Weller, Vice President, Broker at Scalable Capital, explained, “Our strategy is to have any ETF that could be sold to European retail clients under usage on the platform. We will make it savings plan eligible, and savings plans will always be cost-free.”

    Investment education is especially crucial for Europe’s largely younger base of new investors. Selina Kirby, Head of Digital and Execution Only, UK Client Group at Vanguard, highlights that “80% of new investors are under 45 and unfamiliar with even basic investment concepts like diversification and risk/reward trade-offs.” She adds, “We’re seeing a huge growth in trusting of social media and AI, whether we like it or not. Everyone’s got advice in their pocket now.”

    New trends in thematic investing

    Indeed, thematic investing is one of the most dynamic areas of the market, as investors evolve and diversify outside traditional sector or industry categories. As Miriam Breen, Head of Business Development UK and Ireland, ETF and Index at BNP Paribas Asset Management, explains, “They don’t want to just invest in the hot new thing. They’re looking for returns, they’re looking for relevance, and they’re looking for real-world resilience.”

    Bloomberg Intelligence, which delivers interactive data, tools and research across industries and global markets, tracks 33 thematic baskets, looking beyond industry classifications to track the themes that drive company revenues. The largest, most diversified companies may belong in more than one basket.

    This approach enables Bloomberg to capture themes such as Global Modern Defense. Defense spending in Europe has increased dramatically in recent years, due to Russian aggression and other factors. That makes this a hot category right now, but Dougherty says it was compelling even before the surge in military budgets. “When we built modern defense, we were seeing a big modernization trend within defense budgets, which we really wanted to capture,” says Dougherty.

    Trading strategies in a fragmented market

    European markets are more fragmented than the U.S. market, spanning multiple countries, exchanges and currencies. “We have something like 13,500 listings in Europe, really dwarfing the number of products in the US with a much smaller asset base,” says Slawomir Rzeszotko,  head of institutional sales and trading for Europe and Asia at Jane Street “Why do we have so many listings, and why do we have so many products? Well, because we are dealing with a much more diverse set of customers, right, from retail to institutional, from people based in different currency regimes and expecting income or distributing class share classes,” adds Rzeszotko.

    With so many products, many at smaller asset sizes, Gregoire Blanc, Global Head of Capital Markets at Amundi cautions that it’s a mistake to judge ETFs by the same standards as single stocks; even smaller, less frequently traded ETFs can provide liquidity if their underlying assets trade readily.  “It’s not necessarily a negative to see no volume traded, small AUM ETF,” he explains. “It doesn’t mean it’s illiquid. It just means no one’s trading it right now.”

    The road ahead for European ETFs

    Industry leaders emphasize that ETFs are more than just tools for liquidity—they have become central to investment, trading, portfolio construction, and capital formation. “The reason ETFs are such an incredible tool is because they are everything. They’re an investment tool, they’re a trading tool, they’re a portfolio construction tool, they’re a cash equity monetization tool,” Rachel Lord, Head of International at BlackRock, explains.

    According to Lord in recent months thinks markets reacted mostly to heated rhetoric, rather than dramatic shifts in U.S. – European relations. “If you just step back and don’t think about the language, the messaging is pretty simple. Europe needs to pay for its own defense. America needs to stop exporting all its manufacturing capabilities and therefore lose control of its supply chain,” she says. “If you can distill it into its simplest parts, it becomes clear that Western Europe’s developed markets and America are actually much more aligned than the media would like us to believe.”

    Still, she emphasized that these changes will require new forms of capital, with European markets needing to expand and Capital Markets Union offering a potential catalyst.

    ETFs can play an important role in that, providing a low-cost, liquid mechanism for individuals and institutions to invest in Europe’s future. According to Lord, private market ETFs will be critical in moving what she calls “a wall of money” into sectors like infrastructure spending, energy resilience spending, data centers and artificial intelligence.

    Interested to see more insights from ETFs in Depth conference. Click here

    Insights in this article are based on panels and fireside discussions at the Bloomberg ETFs in Depth event held in London in July 2025.

    Disclaimer

    The data and other information included in this publication is for illustrative purposes only, available “as is”, non-binding and constitutes the provision of factual information, rather than financial product advice.  BLOOMBERG and BLOOMBERG INDICES (the “Indices”) are trademarks or service marks of Bloomberg Finance L.P. (“BFLP”). BFLP and its affiliates, including BISL, the administrator of the Indices, or their licensors own all proprietary rights in the Indices. Bloomberg L.P. (“BLP”) or one of its subsidiaries provides BFLP, BISL and its subsidiaries with global marketing and operational support and service. Certain features, functions, products and services are available only to sophisticated investors and only where permitted. Bloomberg (as defined below) does not approve or endorse these materials or guarantee the accuracy or completeness of any information herein, nor does Bloomberg make any warranty, express or implied, as to the results to be obtained therefrom, and, to the maximum extent allowed by law, Bloomberg shall not have any liability or responsibility for injury or damages arising in connection therewith. Nothing in the Services or Indices shall constitute or be construed as an offering of financial instruments by Bloomberg, or as investment advice or investment recommendations (i.e., recommendations as to whether or not to “buy”, “sell”, “hold”, or to enter or not to enter into any other transaction involving any specific interest or interests) by Bloomberg. Information available via the Index should not be considered as information sufficient upon which to base an investment decision. All information provided by the Index or in this publication is impersonal and not tailored to the needs of any person, entity or group of persons. Absence of any trademark or service mark from this list does not waive Bloomberg’s intellectual property rights in that name, mark or logo.  For the purposes of this publication, Bloomberg includes BLP, BFLP, BISL and/or their affiliates.  

    BISL is registered in England and Wales under registered number 08934023 and has its registered office at 3 Queen Victoria Street, London, England, EC4N 4TQ. BISL is authorised and regulated by the Financial Conduct Authority as a benchmark administrator.  

    © 2025 Bloomberg. All rights reserved.

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  • Multi-theme index outpaces Mag 7 amid AI growth | Insights | Bloomberg Professional Services

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    Meanwhile, the China Tech 8, a company basket created by Bloomberg Intelligence and including companies such as Alibaba Group Holding, Baidu, and Pinduoduo Inc, gained 42%, but rising trade tensions have since slowed the momentum of that rally.

    Notably, as the chart below shows, leadership dynamics have shifted: Intel, Alibaba and Baidu now occupy the chart’s upper-right corner, signaling rising strength. Meanwhile, Meta, Nvidia and Microsoft have slowed. The scatter chart uses proprietary indicators of relative performance of securities versus the benchmark. The X-axis shows the RS-ratio, measuring strength. The Y-axis shows RS-momentum, measuring direction and pace of the RS-ratio line.

    Among firms holding the most cash, Alibaba led with a 99% jump and Tencent followed with 52%. Amazon and Apple moved the other way, posting declines. The rise of AI enablers like Samsung, Engie, Broadcom and Siemens Energy added to the index’s gains.

    Bloomberg Intelligence notes that index members hold roughly $410 billion in cash, giving them the capacity to accelerate growth across themes including AI, disruptive energy and robotics. Since 2018, they’ve already funneled about $850 billion into deals across public and private markets, underscoring their willingness to reinvest in innovation.

    Tracking

    To see rotation of leadership momentum in Multi-Thematic Index, run Relative Rotation Graph using RRG function on the Bloomberg Terminal.

    To analyze returns, cash holdings, forecast growth and valuations run BMULTIT Index WATC for a view of multi-thematic index fundamentals.

    For the latest Bloomberg Intelligence thematic research, run BI THEM on the Bloomberg Terminal.

    To analyze the characteristics of BMULTIT Index’s outperformance, run BMULTIT Index PORT WS /I

    Figure 3 - Multi-theme index outpaces Mag 7 amid AI growth

    For more information on this or other functionality, click here to request a demo with a Bloomberg sales representative. Existing clients can press on their Bloomberg keyboard.

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  • Global yield surge threatens demand for US Treasuries and equities | Insights | Bloomberg Professional Services

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    When longer-term yields jump, they feed into mortgages, auto loans and credit card rates, squeezing households and broader economies. Rising yields overseas may also dampen demand for US bonds.

    Japan, France and the UK are among 18 developed nations that saw a bigger 30-year yield jump than the US this year, threatening demand for US Treasuries and equities. The rise in Japan was 99 basis points, and in the UK the yield closed on Sept. 2 at 5.69%, the highest since May 1998.

    In September, yields on 30-year sovereigns climbed above the S&P 500 earnings yield in the UK, US and France. The so-called “risk-free benchmarks” are unusually high and have raised doubts over equity valuations following a three-year stock rally.

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  • Risk Budgeting for Chinese Equities: Exception Proves the Rule | Insights | Bloomberg Professional Services

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    Strategy Exploits Low Correlation, Volatility Difference

    Chinese equity sectors are far from perfectly correlated, and their volatility profiles vary widely — conditions that favor a risk-budgeting approach. Over the full sample, the average pairwise monthly correlation between sectors is about 67%, allowing diversification to reduce overall portfolio variance. Historical sector volatilities range from roughly 24% to 34% annualized. Utilities and consumer discretionary have been the least volatile, while telecoms and IT have been the most volatile. The ERC approach systematically adjusts exposures to these differences, increasing allocations to low-volatility, low-correlation sectors and scaling down those with higher and more correlated risk. This results in a more balanced and resilient portfolio.

    Sector Correlations

    Risk Budgeting Shifts Sector Weights in China Equities

    Sector allocation in risk-budgeting strategies can be markedly different from weights in the cap-weighted benchmark. Financials, for example, have the highest weight (27%) in the CSI 300, but ERC reduces this to around 11% so that its risk contribution is equal to that of the other nine sectors. As of June 2025, utilities received the highest weight (16%), while consumer staples had the lowest (7%) in the ERC portfolio.

    Sector Allocation: Benchmark vs. Risk Budgeting

    Customizing Risk Budgeting Reduces Tracking Error

    Large deviations from benchmark weights can result in tracking errors that some portfolio managers prefer to limit. The unconstrained ERC strategy has an annualized tracking error of about 5.6%. A constrained version — capping sector deviations at 5% for small sectors and 10% for large sectors — reduces tracking error to 2.8% while preserving much of the downside protection and maintaining superior risk-adjusted returns relative to the cap-weighted benchmark. This allows risk-budgeting to serve as a benchmark alternative with greater proximity to index weights.

    Performance: Benchmark, ERC, Constrained ERC

    ERC Strategies Show Modest Turnover

    ERC portfolios exhibit relatively low turnover given the stability of sector allocations through time. For the CSI 300 cap-weighted benchmark, average quarterly turnover is 1.7%. For ERC, turnover averages 4.4% for the constrained version and 3.1% for the unconstrained version. The limited trading activity reflects adjustments driven by changes in sector volatility and correlation rather than frequent tactical shifts, keeping implementation costs contained.

    Quarterly Turnover

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  • The next banking crisis could be spurred by climate change

    The next banking crisis could be spurred by climate change

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    America’s smallest banks face potentially destructive losses from climate-related weather disasters, according to a first-of-its-kind report from a climate change nonprofit. And they’re not even aware of the risk.

    Property damage from floods, wind, storm surges, hail, or wildfires threatens a collective $2.4 billion across nearly 200 national banks, averaging 1.5% of these banks’ total portfolio value, according to First Street. Most of this risk is concentrated amid small regional or community banks. In fact, nearly one in three regional banks face significant climate risk. But large institutions aren’t immune, with one in four facing such risks too, the report found.

    “Risk exposure varies, but no matter the size of the institution, all banks had some level of climate risk within their lending footprint,” Jeremy Porter, First Street’s head of climate implications, told Fortune. “The most vulnerable were regional, small, and community banks with highly concentrated portfolios in areas prone to flooding, wildfires, or hurricanes. However, even some of the larger banks faced significant enough risk to merit further scrutiny.” 

    First Street conducted its analysis by looking at extreme weather risks in banks’ physical locations and using it as a proxy for the commercial and residential properties on which banks have issued loans. 

    Nearly one-third of the nation’s banks are exposed to climate-related risks that could reduce the value of their holdings by 1%, a threshold the Securities and Exchange Commission has defined as material. 

    “If you have any line item, as a publicly traded company, with the potential to lose 1% of value… you have to report it,” First Street CEO Matthew Eby said. “On average, every single one of these small banks and community banks hold so much risk, they [would] all have to report it.” 

    Why banks don’t know 

    The SEC’s 1% rule is currently on hold while it faces legal challenges—but regardless, it and other financial reporting requirements exempt small banks. Experts say many of these institutions likely don’t know just how risky their portfolios are. And the ballooning costs of weather-related disasters, which are expected to rise dramatically as climate change worsens, show why it’s critical to understand such risks. Since the 1980s, floods, wildfires, hurricanes, and other weather disasters have caused an ever-rising amount of financial damage, much of it in areas previously immune to weather disasters. 

    Hurricane Debby, which pummeled Florida and the Carolinas last month before moving up the East Coast, caused an estimated $1.4 billion of property losses in the U.S. and over $2 billion in Canada, according to estimates. (It was the costliest event in the history of Quebec, Reinsurance News noted.) But an analysis by First Street found that nearly 8 in 10 of the damage was outside of historical FEMA flood zones, meaning the affected properties were unlikely to have flood insurance, and their owners less able to weather a catastrophic financial loss.

    Repeated across hundreds or thousands of properties, such financial losses could spell disaster for small banks that have outstanding loans concentrated in a specific area. One bank flagged as high-risk by First Street has most of its branches across coastal New England, a region that has seen devastating back-to-back floods for the past two years and where climate change is expected to exacerbate extreme weather.

    “If you lost, after insurance, 14 or 15% of your residential real estate portfolio or commercial real estate portfolio, there’s no way you have the reserves to withstand that, so you’re talking about potential bank failure,” Eby said.

    He added, “financial institutions are really the big concern, because if they fail in financial crises, that impacts everyone else, as opposed to just a company failing by itself.”  

    Unknown unknowns

    While climate risk is a growing concern for banks of all sizes, the smallest institutions are least able to establish and price that risk, said Clifford Rossi, a former Citigroup risk officer who now directs the Smith Enterprise Risk Consortium at the University of Maryland. 

    “So many other things are affecting small banks—they’re dealing with competitive pressure from the big guys that affect economies of scale, they’re fixated on how they’re managing their assets, interest rates are declining… those things are top of mind,” he said. 

    Rossi questioned First Street’s methodology and cautioned against putting numerical estimates on bank losses based on branch locations, saying they could provide wildly varying figures. 

    “There’s certainly a degree of risk in those portfolios, but we don’t know how much,” he said. 

    Every bank should do a loan-level analysis of their portfolio by putting data on addresses, longitude, latitude, and commercial real estate into a climate model to assess the physical risk, he added.

    When it comes to estimates, he warned, “We need to be careful about saying the sky is falling when we still don’t have the best analysis in town.”

    But that kind of analysis is time-consuming and difficult, even for the largest institutions. The Federal Reserve this spring published the results of a test to determine how aware America’s six largest banks—Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo—were of their climate risks. 

    The answer: Not very.

    According to the banks, they didn’t have reliable information on the types of buildings they held, their insurance coverage, weather exposure, or climate-modeling data. 

    The new analysis “underscores the need for all banks, financial institutions, and asset owners to proactively incorporate climate risk into their broader risk management frameworks,” First Street’s Porter said.  

    “Climate risk is present in these portfolios—and it’s measurable. The Federal Reserve, the SEC, and other regulatory bodies are already acknowledging this risk through stress tests, and it’s only a matter of time before mandatory reporting becomes standard practice.”

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  • Private equity, private debt and more alternative investments: Should you invest? – MoneySense

    Private equity, private debt and more alternative investments: Should you invest? – MoneySense

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    What are private investments?

    “Private investments” is a catch-all term referring to financial assets that do not trade on public stock, bond or derivatives markets. They include private equity, private debt, private real estate pools, venture capital, infrastructure and alternative strategies (a.k.a. hedge funds). Until recently, you had to be an accredited investor, with a certain net worth and income level, for an asset manager or third-party advisor to sell you private investments. For their part, private asset managers typically demanded minimum investments and lock-in periods that deterred all but the rich. But a 2019 rule change that permitted “liquid alternative” mutual funds and other innovations in Canada made private investments accessible to a wider spectrum of investors.

    Why are people talking about private assets?

    The number of investors and the money they have to invest has increased over the years, but the size of the public markets has not kept pace. The number of operating companies (not including exchange-traded funds, or ETFs) trading on the Toronto Stock Exchange actually declined to 712 at the end of 2023 from around 1,200 at the turn of the millennium. The same phenomenon has been noted in most developed markets. U.S. listings have fallen from 8,000 in the late 1990s to approximately 4,300 today. Logically that would make the price of public securities go up, which may have happened. But something else did, too.

    Beginning 30 years ago, big institutional investors such as pension funds, sovereign wealth funds and university endowments started allocating money to private investments instead. On the other side of the table, all manner of investment companies sprang up to package and sell private investments—for example, private equity firms that specialize in buying companies from their founders or on the public markets, making them more profitable, then selling them seven or 10 years later for double or triple the price. The flow of money into private equity has grown 10 times over since the global financial crisis of 2008.

    In the past, companies that needed more capital to grow often had to go public; now, they have the option of staying private, backed by private investors. Many prefer to do so, to avoid the cumbersome and expensive reporting requirements of public companies and the pressure to please shareholders quarter after quarter. So, public companies represent a smaller share of the economy than in the past.

    Raising the urgency, stocks and bonds have become more positively correlated in recent years; in an almost unprecedented event, both asset classes fell in tandem in 2022. Not just pension funds but small investors, too, now worry that they must get exposure to private markets or be left behind.

    What can private investments add to my portfolio?

    There are two main reasons why investors might want private investments in their portfolio:

    • Diversification benefits: Private investments are considered a different asset class than publicly traded securities. Private investments’ returns are not strongly correlated to either the stock or bond market. As such, they help diversify a portfolio and smooth out its ups and downs.
    • Superior returns: According to Bain & Company, private equity has outperformed public equity over each of the past three decades. But findings like this are debatable, not just because Bain itself is a private equity firm but because there are no broad indices measuring the performance of private assets—the evidence is little more than anecdotal—and their track record is short. Some academic studies have concluded that part or all of private investments’ perceived superior performance can be attributed to long holding periods, which is a proven strategy in almost any asset class. Because of their illiquidity, investors must hold them for seven years or more (depending on the investment type).

    What are the drawbacks of private investments?

    Though the barriers to private asset investing have come down somewhat, investors still have to contend with:

    • lliquidity: Traditional private investment funds require a minimum investment period, typically seven to 12 years. Even “evergreen” funds that keep reinvesting (rather than winding down after 10 to 15 years) have restrictions around redemptions, such as how often you can redeem and how much notice you must give.
    • Less regulatory oversight: Private funds are exempt from many of the disclosure requirements of public securities. Having name-brand asset managers can provide some reassurance, but they often charge the highest fees.
    • Short track records: Relatively new asset types—such as private mortgages and private corporate loans—have a limited history and small sample sizes, making due diligence harder compared to researching the stock and bond markets.
    • May not qualify for registered accounts: You can’t hold some kinds of private company shares or general partnership units in a registered retirement savings plan (RRSP), for example.
    • High management fees: Another reason why private investments are proliferating: as discount brokerages, indexing and ETFs drive down costs in traditional asset classes, private investments represent a market where the investment industry can still make fat fees. The hedge fund standard is “two and 20”—a management fee of 2% of assets per year plus 20% of gains over a certain threshold. Even their “liquid alt” cousins in Canada charge 1.25% for management and a 15.7% performance fee on average. Asset managers thus have an interest in packaging and promoting more private asset offerings.

    How can retail investors buy private investments?

    To invest in private investment funds the conventional way, you still have to be an accredited investor—which in Canada means having $1 million in financial assets (minus liabilities), $5 million in total net worth or $200,000 in pre-tax income in each of the past two years ($300,000 for a couple). But for investors of lesser means, there is a growing array of workarounds:

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  • Is VFV a good buy? What about other U.S. ETFs with even lower fees? – MoneySense

    Is VFV a good buy? What about other U.S. ETFs with even lower fees? – MoneySense

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    Sure, investing in these ETFs means you’ll forfeit 15% of your dividends to withholding tax. Yet, for many, it’s a worthwhile trade-off to gain access the most significant U.S. equity index—a benchmark that, according to the Standard & Poor’s Indices Versus Active (SPIVA) report, has outperformed 88% of all U.S. large-cap funds over the past 15 years.

    But hold on, these aren’t your only choices. And here’s something you might not know: they aren’t even the cheapest around. Just like opting for no-name brands at the store can offer the same quality for a lower price, other ETF managers have been quietly rolling out competing U.S. equity index ETFs that come with even lower fees. Here’s what you need to know to make an informed choice.

    Exploring cheaper alternatives to the well-known S&P 500 ETFs—like VFV, ZSP and XUS—leads us to a pair of lesser known but highly competitive options: the TD U.S. Equity Index ETF (TPU) and the Desjardins American Equity Index ETF (DMEU). Launched in March 2016 and April 2024, respectively, these ETFs track the Solactive US Large Cap CAD Index (CA NTR) and the Solactive GBS United States 500 CAD Index. The “CA NTR” stands for “net total return,” which means the index accounts for after-withholding tax returns, providing a more accurate measure of what Canadian investors might take home.

    Essentially, these indices offer U.S. equity exposure without the licensing costs associated with the brand-name S&P 500 index, which is a significant advantage for keeping expenses low. You can think of Solactive as the RC Cola of the indexing industry, and S&P Global as Coca-Cola, and MSCI as Pepsi. 

    For TPU, the management fee is set at 0.06%, with a total MER of 0.07%. DMEU charges a management fee of just 0.05%. Since it hasn’t been trading for a full year yet, its MER is still to be determined but is expected to be competitively low.

    In terms of portfolio composition, there’s scant difference between the these ETFs: VFV, TPU and DMEU. Glance at the top 10 holdings, and you’ll see the weightings of these ETFs reveals very similar exposure, with only minor deviations. Similarly, when comparing sector allocations between TPU and VFV, they align closely, reflecting a consistent approach to capturing the broad U.S. equity market. However, look a bit deeper into the technical aspects, the indices that these ETFs track—the Solactive indices for TPU and DMEU versus the S&P 500 for VFV—exhibit some notable differences. 

    The S&P 500 is not as straightforward as it might seem, though. It doesn’t just track the 500 largest U.S. stocks. Instead, what is included is at the discretion of a committee, subject to eligibility criteria including market capitalization, liquidity, public float and positive earnings. This makes it more stringent and somewhat more active than you might have thought.

    In contrast, the Solactive indices used by TPU and DMEU are more passive. They simply track the largest 500 U.S. stocks by market cap, with minimal additional screening criteria. This straightforward approach lends a more passive characteristic to these indices compared to the S&P 500.

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  • FPIs make remarkable comeback; infuse ₹Rs 2 lakh crore in equities in FY24

    FPIs make remarkable comeback; infuse ₹Rs 2 lakh crore in equities in FY24

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    Foreign investors made a strong return by injecting more than ₹2 lakh crore into Indian equities in 2023-24, driven by optimism surrounding the country’s robust economic fundamentals amidst a challenging global environment.

    Looking forward to 2025, Bharat Dhawan, Managing Partner at Mazars in India, said that the outlook is cautiously optimistic and anticipates sustained FPI inflows supported by progressive policy reforms, economic stability and attractive investment avenues. “However, we remain mindful of global geopolitical influences that may introduce intermittent volatility, emphasising the importance of strategic planning and agility in navigating market fluctuations,” he added.

    The outlook for FY25 from an FPI perspective, continues to remain strong,  Naveen KR, smallcase Manager and Senior Director at Windmill Capital, said.

    In the current fiscal 2023-24, Foreign Portfolio Investors (FPIs) have made a net investment of around ₹2.08 lakh crore in the Indian equity markets and ₹1.2 lakh crore in the debt market. Collectively, they pumped ₹3.4 lakh crore into the capital market, as per data available with the depositories.

    The dazzling resurgence came following an outflow from equities in the preceding two financial years.

    In 2022-23, Indian equities witnessed a net outflow of ₹37,632 crore by FPIs on aggressive rate hikes by the central banks globally.

    Before this, they pulled out a massive ₹1.4 lakh crore. However, in 2020-2021, FPIs made a record investment of ₹2.74 lakh crore.

    The flows from foreign investors were largely driven by factors such as inflation and interest rate scenarios in developed markets such as the US and UK, currency movement, the trajectory of crude oil prices, geopolitical scenario and the health of the domestic economy among others,  Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Research India, said.

    “Investors increasingly favoured Indian equities, drawn by the market’s demonstrated resilience during uncertain periods. Compared to other similar markets, India’s economy stood out as more robust and stable amidst global economic turbulence, further attracting foreign investment,” he said.

    smallcase’s Naveen said that economies like the UK and Japan have fallen into recession, Russia and Ukraine are still at war, the USA’s inflation is running hot and the debate of soft versus hard landing still persists, while China has become the global anti-hero. Therefore, India has stolen the spotlight and is delivering numbers with strong GDP growth even amidst a tough business environment.

    After withdrawing funds in the preceding fiscal, FPIs poured a staggering ₹1.2 lakh crore into the debt market too, marking a noteworthy shift in their capital flow. They took out funds to the tune of ₹8,938 crore in FY23.

    FPIs’ debt investments have been extremely robust this fiscal due to attractive yields on Indian sovereign debt relative to the US treasury. This has been supported by strong macros in the form of the robust growth outlook for the Indian economy, stable inflation, a stable currency and the stated objective of the Government to improve its fiscal deficit, Nitin Raheja, Executive Director, Julius Baer India, said. Additionally, the upcoming inclusion of Indian bonds in JP Morgan’s index has led to an inflow in advance into the Indian debt markets.

    Further, the expected global tapering in policy rates should make bond yields in emerging economies look even more attractive to investors making this trend of inflows into Indian debt more sustainable, he added. In September 2023, JP Morgan Chase & Co. announced that it would add Indian government bonds to its benchmark emerging market index from June, 2024. This landmark inclusion, scheduled for June, 2024, is anticipated to benefit India by attracting around $20-40 billion in the subsequent 18 to 24 months. This inflow was expected to make Indian bonds more accessible to foreign investors and potentially strengthen the rupee, thereby bolstering the economy, Morningstar’s Srivastava said.

    Overall, FPIs started the year, 2023-24 on a positive note in April and incessantly purchased equities till August on the resilience of the Indian economy amid an uncertain global macro backdrop. During these five months, they brought in ₹1.62 lakh crore.  After this, FPIs turned net sellers in September and the bearish stance continued in October too with an outflow of over ₹39,000 crore in these two months.

    However, FPIs became net investors in November and the optimism persisted in December too, when they purchased equity to the tune of ₹66,135 crore.  Again, they turned sellers and pulled out ₹25,743 crore in January.

    This could be on account of China opening up after the lockdown. This led FPIs to pull out their investments from other emerging markets like India and divert them toward China.

    However, China struggled to sustain investor interest. Moreover, the fiscal year ended on a positive note as FPIs bought shares worth over ₹35,000 crore in March.

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  • How to navigate market risk from interest rates, the economy and politics in 2024

    How to navigate market risk from interest rates, the economy and politics in 2024

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    As the U.S. Federal Reserve’s three-year reign in the headlines potentially comes to an end, an analysis of this year’s market themes can offer valuable insights for predicting trends and ensuring attractive returns in 2024.

    Beyond the central bank’s actions, pivotal factors shaping the investment landscape this year include fiscal policies, election outcomes, interest rates and earnings prospects.

    Throughout 2023, a prominent theme emerged: that equities are influenced by factors beyond monetary policy. That trend is likely to persist. 

    A decline in interest rates could significantly increase the relative valuations of equities while simultaneously reducing interest expenses, potentially transforming market dynamics. Contrary to consensus estimates, 2023 brought a more robust earnings rebound, leaving analysts optimistic about 2024.

    The 2024 U.S. presidential election, meanwhile, introduces a new element of uncertainty with the potential to cast a shadow over the market during much of the coming year. 

    Choppy trading, modest earnings growth

    Anticipating a choppy first half of the year due to sluggish economic growth, we see a better opportunity for cyclicals and small-cap stocks to rebound in the latter part of the year. As uncertainty around the election and recession fears dissipate, a broad rally that includes previously ignored cyclicals and small-caps should help propel the S&P 500
    SPX
    higher. 

    Broader macroeconomic conditions support mid-single-digit growth in earnings per share throughout 2024. Factors such as moderate economic expansion, controlled inflation and stable interest rates are expected to provide a conducive environment for companies, enabling them to sustain and potentially improve their earnings performance. We estimate EPS growth of 6.5%. This projected growth aligns with the broader market sentiment indicating a steady upward trajectory in earnings for the upcoming year, fostering investor confidence and supporting valuation expectations across various sectors.

    “ If the economy has not been in recession at the time of the first rate cut but enters one within a year, the Dow enters a bear market.”

    When it comes to U.S. stock-market performance around rate cuts, the phase of the economic cycle matters. When there has been no recession, lower rates have juiced the markets, with the Dow Jones Industrial Average
    DJIA
    rallying by an average of 23.8% one year later.

    If the economy has not been in recession at the time of the first cut but enters one within a year, the Dow has entered a bear market every time, declining by an average of 4.9% one year later. Our base case is a soft landing, but history shows how critical avoiding recession is for the bull market as the Fed prepares to ease policy.   

    Big on small-caps

    This past year has posed a hurdle for small-cap stocks due to the absence of a driving force. These stocks typically perform better as the economy emerges from a recession. While they are currently undervalued, their earnings growth has been notably lacking. If concerns about a recession diminish, a normal yield curve could serve as a potential catalyst for small-cap stocks.

    Growth vs. value

    The ongoing outperformance of megacap growth stocks that we saw in 2023 might hinge on their ability to sustain superior earnings growth, validating their current valuations. Defensive sectors in the value category, meanwhile, are notably oversold and might exhibit strong performance, particularly toward the latter part of the first quarter. Should concerns about a recession dissipate, cyclical sectors within the value category could outperform, particularly if broader market conditions turn favorable in the latter half of the year.

    Handling uncertainty

    The Fed’s enduring influence regarding the prospect of a soft landing in 2024 remains a pivotal point in the market’s focus. Considering the themes of the past year and the multifaceted influences on equities beyond monetary policy, investors are advised to navigate through uncertainties stemming from unintended fiscal shifts, upcoming elections and the impact of fluctuating interest rates. While a potentially choppy start to the year is anticipated, it could create opportunities for cyclical and small-cap stocks later in the year.

    Ed Clissold is chief of U.S. strategies at Ned Davis Research.

    Also read: Mortgage rates dip after Fed meeting. Freddie Mac expects rates to decline more.

    More: After the Fed’s comments, grab these CD rates while you still can

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  • Crypto industry bats for lower taxation and a standardised regulatory framework 

    Crypto industry bats for lower taxation and a standardised regulatory framework 

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    The Indian cryptocurrency industry, ahead of the Union budget 2024, is expecting the government to reconsider the current taxation structure on the virtual digital asset (VDA) class, establish a self-regulatory body for the crypto and block chain sectors, and create sandboxes to help start-ups in the sector thrive.

    The crypto exchanges in India have been losing trading volumes on the platform since the introduction of taxation as crypto users moved to offshore exchanges. However, the finance ministry’s recent move to send show cause notices to offshore exchanges and block URLs subsequently has bought respite for domestic exchanges.

    Ashish Singhal, co-founder and Group CEO of PeepalCo, notes that crypto platform CoinSwitch urges the government to reduce the Tax Deducted at Source (TDS) on VDAs from 1 to 0.01 per cent, allow offsetting and carrying forward losses from the sale of VDAs, and treat income from VDAs on par with other capital assets. “Reducing the tax arbitrage that exists today will also help stem the flight of capital, consumers, investments, and talent, as well as dent the gray economy for VDAs,” he said.

    Further, industry body Bharat Web3 Association (BWA) urges the government to also reexamine the flat rate of 30 per cent applicable to income from the transfer of VDAs, specifically including foreign exchanges in the scope of TDS under Section 194S.

    The industry also seeks a standardised regulatory framework. Sumit Gupta, CEO of CoinDCX, said, “Contemplating the establishment of a robust self-regulatory body for crypto and blockchain sector participants could be a game-changer. Implementing a standardised regulatory framework for the crypto and blockchain sectors, the government would not only provide clarity but also unlock a multitude of opportunities and use cases at a global scale, empowering India Inc. to lead on the world stage.”

    In a bid to foster start-ups in the sector, Shivam Thakral, CEO of BuyUcoin, notes, “Imagine India as a fertile field; crypto and blockchain are the seeds waiting to sprout. We need tax incentives and sandboxes to nurture these seeds into thriving start-ups. Sandbox initiatives need protection to foster experimentation.” This will create a new generation of jobs, propel India into the global DeFi and blockchain space, and unlock economic growth, he opines.

    Further, Nischal Shetty, co-founder of Shardeum, also notes that the industry would also like the ministry to dedicate funds for indigenous blockchain projects, exemplifying real-world utility and innovation.

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  • The running of the bulls in the 2023 stock market was more like the waddle of the fat cats

    The running of the bulls in the 2023 stock market was more like the waddle of the fat cats

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    Meow. That’s the sound of 2023’s bull market getting swallowed up by the fat cats that make up the vast majority of stock-market wealth. How vast? Try a record 93% of value owned by the wealthiest 10% of society, according to no less an authority than the Federal Reserve. 

    It puts a different spin on the intense bull run that equities went on dating back to spring 2020, with the S&P 500 more than doubling in value, rising from 2,304 in March 2020 to close at 4,769 on the last trading day of last year. That figure even factors in the market slipping into a bona fide bear market in 2022 amid surging inflation and the souring of pandemic darlings, for instance the “crypto winter” and the end of meme-stock mania.

    These figures are all the more remarkable considering that they are not equivalent to ratios of stock ownership. In fact, the number of Americans who hold any stocks at all also hit a record, with 58% of all Americans invested in equities in some form, also according to Fed data. This means that many of us own stock, but only the top 10% have truly valuable holdings.

    The figures are a reminder that the rising tide of the past year hasn’t necessarily lifted all boats, revealing that even as the ranks of retail investors swelled, the surge in stock values accrued overwhelmingly to the top. 

    That’s a function of basic math. The 84% rise in the S&P 500 since the depths of 2020 is worth a lot more in dollar terms when it’s applied to a starting amount of $100,000 than to a retail investor who’s putting in $2,000. 

    “The higher up the income ladder you go, the more likely someone owns assets like stock and retirement accounts, and also, on average, the more they will have,” said Steve Rosenthal, a senior fellow at the Tax Policy Center. “The rich will have mega accounts, including mega IRA accounts, and the middle class and poor may own some stock, but it will be very little.” 

    The average equity holdings of the wealthiest tenth, which in 2022 included households worth $1.9 million or more, was $608,000 — a figure that includes stock held outright as well as shares in retirement or mutual funds. Meanwhile, the poorest half of Americans (households with a net worth $192,000 or less) typically had stock holdings worth just $12,500.

    Even within the richest sliver, nearly all the growth in stocks has gone to the top 1%, said Chuck Collins, who directs the inequality program at the left-leaning Institute for Policy Studies.

    Two decades ago—in the wake of the dot-com bust—the wealthiest 1% held 40% of the wealth in public markets; today, their share is 54%.

    And Collins believes that’s by design. The policies of the past decade “have encouraged asset growth and discouraged wage growth,” he said. “As much as wages have gone up, the rules of the economy have been tilted to asset owners at the expense of wage earners.”

    In his view, and in the belief of many progressive economists, the impressive stock gains of the past few decades are directly tied to policies that reduce how much money people can earn in other ways, including wages, pensions, and taxes that can redistribute gains from the richest to the poorest.  

    There’s “tax cuts and tax avoidance at the very top, and very low minimum wages that don’t reflect the productivity gains among average workers,” Collins said. Since the late 1970s, even as American workers got more productive, their pay fell far behind the value they were contributing, a shift that coincided with the popularity of the Friedman doctrine, which held that corporations’ only purpose was to make money for shareholders. 

    Since the late 1970s, Collins notes, “the productivity gains have mostly gone to equity, and to stockholders.”

    More classically liberal (as in Adam Smith) proponents of free markets argue this is a good thing: Long-term, equity markets have provided the best return of any asset class, and encouraging broad participation in these markets is one way to spread prosperity widely, goes the argument. It’s the thinking behind, for instance, the rise of 401(k) plans in the place of pensions, and George W. Bush’s philosophy of an ownership society — people can have better results managing their own money than if they expect society to provide it for them.

    But today’s markets are far narrower than they once were, and not just in terms of ownership. The stock market’s 20% rise this year has been fueled by just a handful of superstar companies. The so-called magnificent seven have a market cap equal to the stock markets of Canada, Japan and the United Kingdom, Apollo Chief Economist Torsten Slok noted this month.

    This type of concentration discourages participation by boosting the most successful stocks above the level many investors can afford. And the era of “easy money,” as ultra-low interest rates were derisively called, allowed many firms that would have formerly floated on stock exchanges to sell to private equity, shrinking the total number of companies that are publicly traded—by more than 40% since the mid-1990s. (To their credit, commentators such as economic historian Edward Chancellor decry the distortions from such abundant capital.) Likewise, the current state of the market, in which 1% of Americans control more than half the stock-market wealth, offers another perspective on the pandemic’s economic boom, and why an economy that’s strong in the aggregate is leaving many people cold. 

    “The whole idea that there’s this democratization of the markets is way overhyped. 93% of all assets are in the top 10%— I don’t know what kind of democracy you’re living in,” said Collins. “The four-decade-long wealth surge to the top is basically continuing.”

    Subscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. Sign up for free.

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    Irina Ivanova

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  • How to buy Fidelity ETFs in Canada – MoneySense

    How to buy Fidelity ETFs in Canada – MoneySense

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    ETFs may have lower management fees than comparable mutual funds. And, with such a wide variety of ETFs with different asset allocations to choose from—including funds that combine equities with fixed income and even cryptocurrency—there are ETFs for a range of investors, from conservative to aggressive. You can choose ETFs that try to replicate an entire stock index, such as the S&P 500, or focus on a specific sector or geographical region. Most ETFs are passively managed, but a growing number of funds are actively managed.

    Plus, you can hold ETFs in both non-registered and registered investment accounts. Examples of registered accounts include the registered retirement savings plan (RRSP), tax-free savings account (TFSA) and first home savings account (FHSA).

    Investing in Fidelity ETFs

    In Canada, Fidelity Investments offers a variety of ETFs for investors with different investment objectives, time horizons and tolerance for risk. Investors can consider ETFs in the following categories:

    • Equity ETFs invest in stocks across a broad range of sectors, market capitalizations and geographies.
    • Fixed income ETFs invest in bonds and can be used to generate income, with the potential for capital preservation. 
    • Balanced or multi-asset ETFs invest across asset classes, including stocks and bonds.
    • A sustainable ETF that invests in companies with favourable environmental, social and governance characteristics.
    • Digital asset ETFs have direct exposure to cryptocurrency, such as bitcoin and ether.

    Fidelity ETFs are available through financial advisors and online brokerages. Learn more about Fidelity ETFs.

    Learn more about ETFs

    On this page, we’ll share articles to help you learn about and evaluate ETFs for your investment portfolio. Check back often for more insights.

    • How many ETFs can Canadian investors own?
      ETFs offer Canadian investors an appealing combination of convenience, diversification and low fees. But how many ETFs should you own, and which ones?
    • What investments can I put in my TFSA?
      The TFSA contribution limit for 2024 was recently announced. TFSAs can hold more than just cash. Get to know your TFSA investment options, including some Fidelity All-in-One ETFs that offer portfolio diversification.

    Know your investing terms

    Brush up on investing basics with helpful definitions from the MoneySense Glossary.

    This article is sponsored.

    This is a paid post that is informative but also may feature a client’s product or service. These posts are written, edited and produced by MoneySense with assigned freelancers and approved by the client.

    Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated with investments in mutual funds and ETFs. Please read the mutual funds or ETF’s prospectus, which contains detailed investment information, before investing. Mutual funds and ETFs are not guaranteed. Their values change frequently, and investors may experience a gain or a loss. Past performance may not be repeated.

    The statements contained herein are based on information believed to be reliable and are provided for information purposes only. Where such information is based in whole or in part on information provided by third parties, we cannot guarantee that it is accurate, complete or current at all times. It does not provide investment, tax or legal advice, and is not an offer or solicitation to buy. Graphs and charts are used for illustrative purposes only and do not reflect future values or returns on investment of any fund or portfolio. Particular investment strategies should be evaluated according to an investor’s investment objectives and tolerance for risk. Fidelity Investments Canada ULC and its affiliates and related entities are not liable for any errors or omissions in the information or for any loss or damage suffered.

    Portions © 2023 Fidelity Investments Canada ULC. All rights reserved. Fidelity Investments is a registered trademark of Fidelity Investments Canada ULC.

    The presenter is not registered with any securities commission and therefore cannot provide advice regarding securities.




    About Jaclyn Law

    Jaclyn Law is MoneySense’s managing editor. She has worked in Canadian media for over 20 years, including editor roles at Chatelaine and Abilities and freelancing for The Globe and Mail, Report on Business, Profit, Reader’s Digest and more. She completed the Canadian Securities Course in 2022.

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    Jaclyn Law

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  • Bitcoin Price And Risk Assets Jump In Correlated Move

    Bitcoin Price And Risk Assets Jump In Correlated Move

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    The below is an excerpt from a recent edition of Bitcoin Magazine PRO, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

    An independent bitcoin rally or a high-beta move? Either way, bitcoin holders are celebrating the latest action to start 2023. Bitcoin has shown some significant momentum and has powered through every key short-term price level across daily moving averages and on-chain realized prices. In fact, every major high-beta play in the market is showing the same strength which gives us more caution than confidence in this latest short squeeze highlighted last week in “Bitcoin Rips To $21,000, Shorts Demolished In Biggest Squeeze Since 2021.”

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    Dylan LeClair And Sam Rule

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