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Bitcoin.
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Hello and welcome to Insider Investing. I’m Joe Ciolli, and I’m here to guide you through what’s happening in markets as well as what to expect in the coming weeks. Here’s what’s on the file:
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Your weekly outlook
Over the past week, the market goat demand has shifted somewhat away from the troublesome day trading on Reddit and towards bitcoin, which has repeatedly set new records. The red-hot cryptocurrency received a coveted co-sign from Tesla, which said it had bought $ 1.5 billion and would accept it as payment.
It then rose even more to the highest points of all time after further acceptance by people like Mastercard and BNY Mellon. With bitcoin now at a record high, a few centuries-old questions will continue in the coming weeks: can the increasing increase in adoption continue to increase the price of the currency too much? And who will follow the lead of these high-profile companies?
But the return of crypto does not mean that everything was quiet on the Reddit front. During the week, there was a great deal of interest among day traders in cannabis supplies, which was linked to expectations that federal legalization would gain steam under the Biden administration. The volume of options – the preferred investment vehicle for risk-hungry Wall Street Bets users – has risen according to records.
The initial pop in cannabis names declined rapidly, raising questions about whether the Reddit crowd would once again be able to reach the consensus and interest that made the GameStop bet so effective. The sudden interest in the cannabis space has also shown the unpredictability of the Reddit group, which at one point apparently shifts its focus.
Lastly, stimulus will keep the coming week par excellence in mind, even if the progress was sometimes slow and frustrating. The market still responds immediately to any kind of incremental development, so keep an eye out for guidance from politicians or further package details.
Robin Hood; Samantha Lee / Insider
By all indications, Robinhood has become the investment program for novice traders. Its sleek design, flashy features and simple interface have attracted 13 million users since 2013. Insider spoke to 10 users and industry experts to find out how Robinhood trading has changed.
Read the full story here:
GENERATION ROBINHOOD: How the trading app conditioned its inexperienced users to play the market obsessively
ARK Belê
Last week, Ark CEO Cathie Wood said stocks are not bubbling, but bonds are. She and her team break out the implications of Tesla’s $ 1.5 billion bitcoin investment, and also share the investment case for the Chinese share behind the audio chat app Clubhouse.
Read the full story here:
Cathie Wood and her analysts discuss why Tesla’s $ 1.5 billion bitcoin purchase could cause a wave of corporate investment, the downfall of the GameStop AMC phenomenon and their positive view of the Chinese stock behind Clubhouse
Papyrus Capital
Nitin Sacheti is the founder and portfolio manager of Papyrus Capital, a long / short term hedge fund. In a book called ‘Downside Protection’, Sacheti set out his unique short selling strategy. He gives an explanation of how he evades the short print on meme shares, and shares which shares he buys.
Read the full story here:
A hedge fund manager who has written a definitive book on short selling outlines how his strategy helped him evade the pressure on GameStop – and share what types of stocks he is buying now and short.
Stock selects centrally
Looking for experts who are willing to name names? Look no further:
