The conundrum facing current and potential investors in crypto currencies is, valuation. Bitcoin does not derive its value from any assets or earnings. Hence, the value depends entirely on what an investor is willing to pay for it. Valuation metrics for more established investment vehicles have been fairly well established. Bond valuations are based on … Continued
FOMO is an acronym for “fear of missing out,” which is a social anxiety stemming from the belief that others might be having fun while the person experiencing the anxiety is not present. Social networking may have broadened the opportunity to feel left out. FOMO may partly explain the social network driven dramatic increase in … Continued
In light of the recent exceptional volatility in some investment opportunities, it might be worth remembering that bubbles have raised and dashed the hopes of speculators for centuries (see our blog Tulip Mania – A Reminder). One of my favorites is the great Beanie Baby bubble of the late ‘90s. With no big-box distribution or … Continued
Recent events and media coverage surrounding the rise of Robinhood and Reddit suggest that many investors, particularly those recently attracted to stock market opportunities, may not only lack experience but also have a very limited understanding of the regulatory environment. Individual and institutional investing activities are subject to a wide range of rules and regulations … Continued
If you are eager to “invest” in Bitcoin you can do it with your credit card. According to wikiHow, the first step is to create a Bitcoin wallet, or software that stores Bitcoin and other digital currencies. When you are ready to purchase, find an online exchange that accepts credit cards. While purchasing Bitcoin with … Continued
The idea of “peak oil,” historically a reference to a fear that oil supply was running out, now means something entirely different. Today, peak oil refers to peak demand, not supply. British energy company BP has suggested that oil demand may have peaked in 2019. Others have suggested that peak demand may not occur for … Continued
Once upon a time a falling acorn hit Chicken Little on the head. This startled the bird so much that she immediately embarked on a crusade to spread the news (misinformation) that the sky was falling. Spreading misinformation is not only a topic for fables, but has a long factual history. The expression, “get off … Continued
Thank you Charles M. Schulz and Snoopy. Anecdotally, it seems that a number of my neighbors have taken this advice as Covid-19 forces more of us to remain house-bound. On a more serious note, while it is well established that older people tend to be happier than they were when they were younger, a recent … Continued
There is no simple way to summarize or explain 2020’s equity markets. By the end of the year the S&P 500 was up a very solid 18.4%, but that doesn’t begin to tell the story. Equity markets started the year on the soft side. Then came Covid-19 and stocks sold off sharply. March alone saw … Continued
According to Wikipedia, tulip mania was a period during the Dutch Golden Age when contract prices for some bulbs of the recently introduced and fashionable tulips reached extraordinarily high levels, and then dramatically collapsed in February 1637. In Europe, formal futures markets appeared in the Dutch Republic during the 17th century. One of the most … Continued
The concept of investing has taken a beating with an increasing misuse of the word. For example, some marketers of expensive items, like new cars, describe the purchase as an investment when it is clearly consumption. Except in a few, very rare instances, automobiles depreciate. Investopedia defines investment as a way to set aside money … Continued
This is clearly a very complex and controversial issue. It is equally clear that big pharma, with considerable help from government, both financial and regulatory, has created an exceptional response to the dangers of Covid-19. Development and distribution of the Covid-19 vaccines represent a constructive example of what can be achieved by public/private partnerships. The … Continued
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