Dalio’s Crypto Afterglow, Nike Sneaks By, ESG Won’t Let Me Be
A Crypto “Tallyho!” From Dalio
Great Ones, I must warn you. I sense something strange in my mind. Crypto investing is … serious. Let’s get it ‘cause we’re running out of time.
It’s all so beautiful, Bitcoin (BTC) it seems from the start. It’s all so deadly … when investing doesn’t come from the heart…
Hold up … is that Poison by Bell Biv DeVoe?
Why? Is it driving you outta your mind? Was it hard for you to find? I just can’t get crypto outta my head. Buy it, try it, hodl it … crypto is…
OK, that didn’t go where I wanted it to.
Cryptocurrencies are most definitely not poison, especially when you have Spider-Man and Superman in full effect — which, by the way, if you haven’t checked out Ian “The Crypto” King or Ian “Crypto Fire” Dyer’s cryptocurrency research … you’re really missing out!
Just what are you missing out on? Why, today’s nearly 5% rally across the board in cryptocurrencies, that’s what!
Ray Dalio’s Bridgewater Associates announced this morning that it’s planning to invest in a crypto fund — one reportedly backed by bitcoin.
For those who don’t know, Bridgewater Associates is the world’s largest hedge fund, with more than $150 billion in assets. Now, Dalio himself has said publicly that he owns bitcoin in his personal investments, but Bridgewater getting into the crypto game is a huge deal.
I mean, the world’s largest hedge fund is finally taking crypto seriously as an asset class? You don’t get many better endorsements than that.
Now, obviously, we should take today’s “news” with a grain of salt. After all, the report comes from “people familiar with the matter,” and Bridgewater hasn’t publicly confirmed or denied any of this information.
Furthermore, when CoinDesk reached out to Bridgewater for commentary on its crypto plans back in February, the hedge fund said:
“Actively research” is an understatement if these “people familiar with the matter” are to be believed. Coinbase reports that one such familiar person had this to say about Bridgewater’s crypto plans:
So let’s recap a bit here.
First, we have Ray Dalio himself — the founder of Bridgewater — buying bitcoin back in January. Then we have President Joe Biden telling the Treasury to research cryptocurrencies and explore the possibility of a crypto-style digital U.S. dollar. And finally, we have the world’s largest hedge fund looking at buying into the cryptocurrency market.
What more do y’all need to see to prove that crypto is a serious asset class and a considerable investment opportunity?
Wait … there are people not taking crypto seriously? Really?
Man, you should see the Great Stuff inbox every time I write about crypto. The number of people calling crypto a “scam” is too damn high!
Y’all need an Ian is what y’all need. And I happen to have two! So check these out…
Using his Crypto Flash system, Ian Dyer can spot when an altcoin has the potential to run up. Everything he recommends can be bought on Coinbase (the simplest platform for buying crypto).
Right now, he believes a rebound is coming … quick. Click here to see why!
Meanwhile, for the past 18 months, Ian King has been tracking a little-known corner of the crypto market that could explode at least 70 TIMES bigger over just the next decade…
Setting into motion a $9 trillion tsunami that will launch one of the greatest transfers of wealth the world has ever seen.
To help you see the true enormity of the opportunities this $9 trillion mega boom is creating, Ian’s rereleasing his breakthrough presentation: “Crypto’s Third Wave.”
The Good: These Shoes Were Made For Running
How do you deal with inflationary pressures and supply chain conundrums? You outrun them.
Last night, Nike (NYSE: NKE) reported fiscal third-quarter earnings that trampled the Street’s expectations in nearly every way.
Sales rose 5% across the board to $10.87 billion, beating more conservative estimates for $10.59 billion. Earnings per share were also quite strong, coming in $0.16 higher than analysts anticipated.
China was of major concern heading into the report, as certain consumers have boycotted Western brands like Nike over poor U.S.-China relations.
However, Nike managed to mitigate the situation by prioritizing its North American market while tensions remain … well, tense. According to Nike, sales slid 5% lower in China but were offset by a 9% climb in North America.
In fact, the only finish line Nike can’t seem to cross is its outlook for the upcoming year. That particular pontification has been pushed back to the fiscal fourth quarter, which Nike Chief Financial Officer Matthew Friend says is due to “several new dynamics creating higher levels of volatility.”
Oh, you don’t say. Wall Street was willing to let this one slide, though, and pushed Nike stock nearly 5% higher on the day.
The Bad: Okta On Blast
Correct me if I’m wrong, Great Ones, but I don’t think I’ve ever discussed identity authentication company Okta (Nasdaq: OKTA) in these here virtual pages.
If you’re not familiar with Okta, the company describes itself as the “identity provider of the internet.”
Basically, it provides multi-factor authentication services to other businesses and websites to keep user information secure.
Considering Okta is a company whose claim to fame is security … you can imagine why news of a semi-recent cybersecurity hack on Okta’s systems by online group Lapsus$ didn’t go over so well with investors.
While the company said the matter was well within hand and “there is no evidence of ongoing malicious activity beyond the activity detected in January,” the breach still concerned some of Okta’s customers … and rightly so.
I mean, if Okta can’t tell its customers about a major cybersecurity hack until two months after the fact — and only after screenshots of Okta’s admin access were posted by Lapsus$ online — what does that say about the company’s own safety services?
It certainly doesn’t say anything good, which is why OKTA shares sunk slowly into the red this morning.
Editor’s Note: More Tesla Than Tesla?
A tiny New York company could hold the key to a radical new tech … and a $30 trillion stock market windfall.
One group of infamous short sellers dubbed it “more compelling than an early-stage Tesla.” And at least four American billionaires have already made their move…
Why all the fuss? Click here for answers.
The Ugly: But Is Everything Actually OK?
You might be surprised to see Alibaba (NYSE: BABA) in today’s “Ugly” spot — especially since its stock is rallying 10% on news of a sizeable share buyback program designed to boost investor confidence after narrowly avoiding a delisting debacle.
But hear me out…
Even though China’s relations with the U.S. are normalizing a bit — and the Chinese government (aka Xi Jinping) now “supports various kinds of businesses’ overseas listings” — nothing formal has been brought to the table in terms of regulation resolutions.
In other words, both China and the U.S. have different rules and regulations about information-sharing that protect their own markets. And so far China hasn’t cited any new data-sharing rules that bridge the financial disclosure gap between the SEC and U.S.-listed Chinese companies.
At this point, it’s anyone’s guess how this scenario will shake out. But until this financial transparency problem is put to rest … like, legally speaking … BABA investors still run the risk of having their holdings taken away.
And as for today’s buyback news? Well … y’all know I’d rather see Alibaba use that money to grow its business instead of reassuring investors that “everything’s OK here in China” when so much is still up in the air.
Had Chinese stocks not become such a pariah these last few months, I think Alibaba would’ve used that extra $10 billion to boost its business. But instead it’s throwing money at the wall to keep current investors happy … and entice new people to buy in these uncertain times.
And that, in my opinion, is just plain ugly.
BS? In my environmental, social and governance-based investing?! It’s more likely than you think if you believe Robert Eccles here.
You might’ve heard of ESG investing as “green,” sustainable investing in these here Great Stuff pages.
As previous polls have shown … not many of y’all are investing in these supposedly greener pastures, with only a handful of ESG investing fans and a 59.3% majority of you just caring about the green in your portfolio. And yes, Scott L., I do mean a majority vote.
So for those of you investing in ESG stocks or funds, ask yourself: Is sustainable investing actually, you know … sustainable in terms of realizing gains? Especially in this oil-dependent day and age?
Name a public company that doesn’t in some way touch oil, whether through its supply chain, plastic usage or operations. I’ll wait. (Seriously, let me know … I’ll wait.)
This is what Robert Eccles is leading toward with today’s Quote of the Week.
As the ESG investing space stands today, you have people wanting to throw money at investments they’re told are green … and you have people who want to actually make money while investing in green-ish plays.
It doesn’t necessarily mean you’ll make gains on those ESG picks … but you’re doing it for the good of the world, right? Who can put a price on that?! Except, you know, the fund runners who just sold you that ESG ETF…
If you’re trying to build a portfolio of climate-friendly companies that’s actually, you know, going to make you money, you have but a few complicated ways to circumvent oil:
One way to have net zero climate impact is to only buy companies that don’t use any oil (or gas-powered electricity, etc.), but that seems really hard. Another way is to buy companies that use some oil in a judicious way, and also plant lots of trees, or pay people not to cut down existing trees…
But a third way to do it is to buy the stocks of companies that use some oil in a judicious way, and then also short a bunch of oil-company stocks. — Matt Levine, Bloomberg
There you have it. The finance world’s oil trying to mix with the ESG world’s … umm … water.
As for me? I would personally bet money that most ESG investors are choosing what’s behind door No. 3 — buying companies that use oil judiciously while shorting oil companies.
How else can you stand between the growing alternative energy market while still benefiting from the wean off of oil?
Don’t get me (or Matt Levine or Robert Eccles) wrong: One of these days, ESG will grow into a more legitimately profitable investing strategy, where you’ll be able to track ESG-vetted stocks without needing to short oil companies.
But today is not that day.
By the way, thanks to each and every one of you who replied to yesterday’s thought experiment! If you missed our pop quiz on emotional investing cycles … it’s a lot more interesting than the words “pop quiz” and “emotional investing cycles” might have you believe.
Also, if you’ve been holding in your rants on ESG investing, cybersecurity warfare, crypto coins, BABA’s buybacks or any other recent market shenanigans … it’s time to rant away!
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Until next time, stay Great!
Editor, Great Stuff