Crypto Crocodile Tears; Signet’s Shiny Diamonds; GM’s Big Break
And crypto bulls wanted to send him a letter, just to try to make themselves feel better … but they know where that will get them.
Today’s quoteworthy conversation is brought to you by none other than Van Halen — oh, and Jamie Dimon, too.
Dimon’s the chairman and CEO of JPMorgan Chase (NYSE: JPM). But today, if you couldn’t tell, Jamie’s cryin’ — about the crypto market, no less. And it made me feel soooooo sad…
During an Institute of International Finance event yesterday, Dimon chimed in on crypto, simply stating:
So that’s what we’re going to do today, huh? We’re going to fight?
No, no, put down the pitchforks, simmer down — I bring up Dimon’s point for a reason, even if Dimon’s own reasons for making said point remain to be seen.
The head of a big bank randomly wants to rant against crypto? In big bank earnings week? Oh, OK, carry on…
I mean, have you seen bitcoin (BTC) rallying lately? With every broad-scale crypto run, there’s always some jokester who’s gotta re-center the attention on themselves … be it a crypto bull like Elon Musk or the vocal anti-bitcoin crowd.
Rabble rousers will rouse rabble. What else is new? The difference here is that unlike many other anti-crypto commentaries that we’ve heard touted by Wall Street talking heads … Dimon does know what makes crypto markets tick.
Dimon says so himself, but people probably stopped listening after the “crypto is worthless” part of his statement. (Spoiler alert: It’s the same thing Great Stuff has told you literally all year long.)
Here’s Dimon again with the real Quote of the Week:
Well put, Hemingway…
Jamie Dimon’s right — well, kinda. I personally disagree about crypto being worthless, but that’s the thing: It’s this disagreement that makes markets, as Dimon points out.
The fact that people are questioning and rethinking what “stores of value” are … is why the crypto market’s taking off like it is.
Oh great, you’re gonna bring up that whole philosophical rant again… Why does anything have value? Why are we here? Blah blah blah.
Precisely my point. You Great Ones know this by know. Say it with me, class…
Cryptocurrencies have value because enough investors decided they have value. Countless individual factors go into that decision, but that’s the bottom line.
It’s the same thing with gold and diamonds (more on those beauties in a sec). They all have value because people want them. That’s it. When people stop wanting those things, they will lose value — shout-out to any tulip bulb hodlers still out there.
In this context, Jamie Dimon’s personal thoughts on crypto don’t matter all that much. Sorry, dude.
Great Stuff has been jackhammering on this point since the beginning of the year. Back on January 14, we gave you the two concrete reasons why cryptos have value:
Utility: Cryptocurrencies like bitcoin are traceable, exchangeable and not tied to any government. They have a built-in ledger via blockchain that allows you to see how they’ve traded before and where. These factors allow cryptos to have a level of security never before seen in currencies.
Scarcity: Gold, diamonds, etc., have long held value tied to their scarcity. There is supposedly a finite supply. In the case of cryptocurrencies, this is doubly true. There are only 21 million bitcoins in existence. And there will only ever be 21 million bitcoins.
Nothing’s changed since then … besides a few new all-time crypto highs, that is. And speaking of the utility side of crypto, remember what we said back on July 27:
So, bigger and bigger players are deciding that cryptos have value and, at the very least, a purpose in the world. In turn, this broader acceptance gives crypto … you guessed it … more value!
If you’re a crypto bull, you probably don’t need my reaffirmation that crypto will carry on higher, but here’s some validation anyway. Ah yeah, that’s the stuff!
Crypto will continue to rally … as long as, like Beetlejuice, you don’t mention some certain regulatory agency by name. (I’ll pretend I didn’t hear that. — Gensler, probably.)
Go keep on hodling those tendies with your diamond hands, or whatever you do.
But for those of you on the fence about crypto … those of you more likely to waver amid the winded codswallop coming from the likes of Jamie Dimon … just read the subtext here.
Dimon’s personal thoughts on crypto, while attention-grabbing and gasp-generating … mean nothing. Let’s not forget that JPMorgan started the albeit-gimmicky “JPM Coin,” cautiously experimenting in digital currencies and payments much the same way a college freshman experiments in not blacking out.
Let’s also not forget that JPMorgan’s heavily invested in blockchain tech, which underpins the entire crypto and decentralized finance movements to begin with. (You can learn more about blockchain right here.)
So, all told, we have the head of one of the world’s biggest investment banks putting aside his own personal crypto hatred to help JPMorgan cash in on the crypto market and its underlying tech.
What does that tell you about the potential in the crypto market, Great Ones?
Of course, if you’re still not convinced of the potential that crypto poses, get this:
My colleague Ian King’s been tracking a small corner of the crypto universe that could explode into a $9 trillion boom.
And in his special event, Ian’s revealing how you could ride this massive crypto wave to make 12X your money — in the next 12 months.
- His readers had the chance at a 3,900% gain in just three months … selling just half of a position.
- Another showed them a 1,900% gain in four months — again on half a position.
- And get this — the other half of that trade is up over 9,700% in the past 10 months.
Ian’s convinced “Crypto’s Third Wave” has the potential to produce even bigger returns than anything we’ve seen before.
And once you’re done checking that out, let me know what you think about the whole crypto conversation over at: GreatStuffToday@BanyanHill.com.
Signet Jewelers (NYSE: SIG) investors were left singing “Where Is The Love?” this morning after the diamond distributor’s stock sank 3% on … what’s this, news of positive revenue growth and a strategic business acquisition?
Signet — which owns jewelry chains Kay Jewelers, Zales and Jared — announced it would add rival retailer Diamonds Direct to its oh-so-shiny business arsenal in a $490 million all-cash buyout.
The acquisition will help Signet capture sales from the upcoming wedding boom that experts say is already underway, now that COVID-19 is less likely to show up as an unwelcoming wedding crasher.
While the merger should immediately add to Signet’s earnings expectations, investors’ stone hearts couldn’t be moved by the positive announcement. Diamonds may be forever, but I guess Wall Street’s love and adoration isn’t.
General Motors’ (NYSE: GM) woes with the Chevy Bolt battery fires are nowhere near over, but its recall process is moving right along. (Unlike those Chevy Bolts … too soon?)
Today, GM answered the question of whether or not it would get battery supplier LG to pay for the recalls and repairs since it was LG’s “rare manufacturing defects” that, you know, consistently caused problems with the Bolt.
GM estimated that recalls and repairs for the Bolts will cost about $2 billion flat. So fittingly, LG only plans to reimburse GM for up to $1.9 billion. Sorry, GM, no one eats for free.
Still, LG is willing to pay an impressive sum to help get the Bolts back in business, which is undoubtedly a win-win for GM … even if it has to chip in $100 million for its part in the recall process.
LG’s stepping up to the plate here and owning the reputational damage — and the costs that follow. For that, I give LG props. To paraphrase the Stones: LG won’t leave … your Bolts a-burnin’ … its reputation’s broad but, it’s a-hurtin’.
Granted, when the battery meets the road, we both know what needs to happen here — and it rhymes with “smydrogen.” But until GM is ready to live the hydrogen high life … it’s time to build better batteries.
Speaking of unlikely unions, Best Buy (NYSE: BBY) announced a rather unusual acquisition of U.K.-based Current Health — a remote patient-monitoring and telehealth company. Current Health makes wearable biosensor tech that gives doctors insight into their patient’s medical conditions.
Wait … what?
Yes, indeed! Believe it or not, Best Buy already owns two other health care companies that provide health-monitoring tech to seniors and health-conscious consumers. Think easy-to-use cell phones, health-centric smartwatches and other emergency-response devices.
While the wearables market has been hot for a while, what started with Fitbit and its once-popular step counter has turned into a lucrative and fast-growing tech market geared toward improving consumers’ health.
Best Buy CEO Christopher McCann put it this way following today’s merger announcement: “The future of consumer technology is directly connected to the future of health care.”
Uh, sure … I think I get it now.
Current Health’s biosensor tech is actually a perfect fit for health-conscious Best Buy. The electronics retailer might still be the free-trial spot for stuff you’ll buy later on Amazon, but at least it’s trying, you know? Good on you, Best Buy. Good on you.
And I want to rent this place out, like, now. Honestly, if my beige-walled abode wasn’t also an impromptu makeshift office for Team Great Stuff … up on Airbnb (Nasdaq: ABNB) it would be.
But nevertheless, with COVID case counts now receding (knock on wood or, if necessary, particle board) it’s game-on for Airbnb and the short-term rental market. At least, that’s what Wall Street’s thinking today.
ABNB shares are up about 5% today after Cowen Analyst Kevin Kopelman upgraded the stock from market perform to outperform. Kopelman also boosted his price target on ABNB from $160 to $220. In other words, it’s an Airbn-buy at these prices.
I rate your pun game at a shaky C- today. Womp.
Hey, at least I’m not trying to coin the phrase “hotel to homes shift” to describe travelers’ changing tastes … though, I’d agree that pretty much sums up Airbnb’s main tailwind going forward. And Kopelman predicts Airbnb will command more than half of this short-term rental market, which the Street is still underestimating due to pandemic uncertainty.
What do you think, Great Ones? Are you invested in ABNB? Have you been in a Best Buy lately, and if so, why? Do you have strong opinions about other peoples’ strong opinions about crypto?
Write to us whenever the market muse calls to you! GreatStuffToday@BanyanHill.com is where you can reach us best.
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