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1. The Investment Case for Bitcoin
We often refer to bitcoin as “digital gold” because, like the metal, it is a potential store of value. To determine if bitcoin has value, it is important to start with an understanding of the two types of value. — Gabor Gurbacs
2. When Does Investing Become Gambling?
Trading stocks is associated with investing. “I buy stocks. I invest.” At some point buying and selling stocks as a day trader leaves the realm of investing and becomes gambling. When does that happen? — Bryce Sanders
3. Reopening: The Markets vs Our Economy
As we enter the month of March, we also mark a full year of COVID-19 related restrictions on businesses, schools, and social functions. Somehow it feels like time has dragged on and yet simultaneously flown by. — Adam Jordan
4. With Rates Rising, Trouble Lurks for 60-40 Portfolios
As Matthew Bartolini, head of SPDR Americas Research, points out, just two fixed income segments generated positive returns last month: Junk bonds and senior loans. Either way, investors had to take on additional credit risk to see some upside with bonds, underscoring some of the current woes facing standard 60/40 portfolios. — Todd Shriber
5. Retail Investors Are Long Confidence And Short Experience
“Essential is the understanding of the role psychology plays in the formation and expansion of financial manias. From the 1711 ‘South Sea Bubble’ to the 2000 ‘Dot.com crash,’ all bubbles formed from a similar ‘panic’ by investors to chase ongoing speculation.” — Lance Roberts
6. A Beginner’s Guide to Enhancing the Client Experience with ESG
The emergence of environmental, social, and corporate governance investing (ESG) has created fantastic conversation around how investors can not only achieve investing return goals, but also make a societal impact with their investments. This is especially the case among high-net-worth individuals and family offices who have accumulated a great deal of net worth and now want to leave a legacy for society by investing in society. — Jesse Witkowski
7. Can the U.S. Government Afford a Big, Bold Infrastructure Bill?
Like his last two predecessors, President Joe Biden has put infrastructure at the top of his list of priorities. Can he succeed where former presidents Barack Obama and Donald Trump failed? Reuters reports that the White House has added transportation and manufacturing specialists to its ranks of advisors as the Biden administration prepares to lobby Congress for an infrastructure bill, possibly once the pandemic relief bill is signed. The president and Transportation Secretary Pete Buttigieg also met with House lawmakers to discuss such a plan. The commitment is there, but rising borrowing costs could put a hamper on things. — Frank Holmes
8. Facebook Marketing for Financial Advisors: Top 9 Ways to Promote Your Business
While Facebook and social media platforms are fun outlets and great ways to connect with others, especially during the COVID-19 pandemic, they are also a great way to network and grow your business. As a financial advisor, you might think that you don’t need to have a Facebook page for your business but think again. — Samantha Russell
9. This Isn’t Your Father’s Overvalued Market
This is not your father’s or your grandfather’s (if he was alive in 1929) overvalued market. There are two major differences… First, in the dot-com era, the Federal Reserve had let loose the dogs of easy monetary policy going into the Y2K event. That was appropriate given the uncertainty, but it clearly helped send already overvalued markets to extremes. We had day traders piling into anything that looked like an internet stock, speculations, really easy money, and so forth. Then after January 1 passed uneventfully, Greenspan appropriately reversed the Fed’s monetary policy. Oops. And now we have enormous federal government stimulus, soon to be about 25% of GDP in less than a year. That money ends up somewhere, but its impact is still unclear. There is no historical parallel to consider. — John Mauldin
10. Wal*Mart’s New FinTech Will Be Like Marcus on Steroids … or Will It?
I’ve long forecast that any company with frequent customer contact – specifically retailers and telcos – will open banks, and many have. Note Tesco Bank, Sainsbury Bank, Orange Bank and more. Nevertheless, in the case of Tesco and Sainsbury, after a quarter of a century I would hardly call them challengers. They’re more like ticks on the backside of the big four banks’ bums. This is because they’re not very good at it. Similar to when old banks launch digital banks, it’s more of a plaything and rarely becomes a main thing. — Chris Skinner
11. How Do Financial Advisors Talk About Performance?
I get it, I was an advisor for over 20 years. You have clients coming in and they want to know how their performance was in the last couple years. You start by giving them numbers, comparing what the markets did and because 2019 was a good year you are thinking this is going to be an easy conversation and they will leave happy, right? — Grant Hicks