Nov 10, 2021 Sign Up

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"The trick in investing is to buy from pessimists and sell to optimists."

Good morning! In some big news coming out of the crypto world yesteday, Tim Cook revealed that he owns cryptocurrency (BTC & ETH) and he's been "interested in it for a while." More companies such as IKEA and Proctor & Gamble are hiking prices as the supply chain crisis rages on & worker shortages persist. In more important news, cheese fry orders are up 1,234% from pre-pandemic levels according to Uber Eats.

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1. Story of the Day: Is Bitcoin Too Big to Fail?

Every Bitcoin crash (which btw happens every few weeks) is greeted with a crop of doomsday stories that it's going to zero. Respected investors such as Warren Buffett ("It is not a durable means of exchange, it's not a store of value") and Jamie Dimon ("Bitcoin is worthless") have ridiculed Bitcoin at every chance they have gotten.

Despite the long way that Bitcoin has come, there still seems to be a fear that one day we will wake up and Bitcoin and the $2.6 trillion cryptoverse will vanish into thin air. Many on Wall Street are struggling to understand crypto's systematic risk and wondering if it could all go horribly wrong.

There is a chance crypto could be regulated out of existence. Bitcoin's concentration, where a few wallets own majority of the coins, makes it subject to systematic risk. Another danger would be a mutiny by crypto miners (~50 miners control close to 50% of the mining capacity).

Bitcoin's institutional acceptance is booming though. According to a recent study by Fidelity Digital Assets, 7 in 10 institutional investors globally plan to diversify into digital assets in the near future, with current adoption rates among institutions in Asia at 71%, Europe at 56%, and the US at 33%, with acceptance expected to grow after US approved the first Bitcoin ETF recently.

Can crypto collapse cause a financial crisis? To put things into perspective, the entire crypto market is worth about 1 Apple. Would the world be okay if Apple went into thin air? Probably but that doesn't mean a collapse isn't possible in the future. Bitcoin does seem bigger than it actually is... probably because no one (including us) can stop talking about it.

Short Squeez Takeaway: Investing in Bitcoin and cryptocurrencies has been one of the greatest investments for many over the last few years. More than institutional investors, it's made a lot of retail traders a lot of money and created a large community and following around it. Bitcoin might not be too big to fail yet but its community won't let it die an easy death.

Source: Institutional Investor

2. Markets Rundown

• US stocks slid Tuesday halting lengthy win streaks that appeared to levitate off optimism around third-quarter earnings, despite lingering concerns about inflation and supply-chain bottlenecks.

Movers & Shakers

• (+) Roblox ($RBLX) +42% after reporting third-quarter results that impressed analysts. Bookings grew 28% and revenue 102% year over year.
• (+) RealReal ($REAL) +19% following a better-than-expected quarterly report.
• (–) PayPal ($PYPL) -11% after the payments company reported quarterly revenue of $6.18 billion, compared to the consensus estimate of $6.23 billion.

3. Top Reads

A Message from Masterworks: The Hottest Market on the Earth according to WSJ

If you’re anything like us, you’re always looking for your next big investment. But stocks are trading at their highest valuation levels since the dot com bubble and inflation is not looking too transitory.

Where can investors like you turn? 

According to a WSJ report, “the hottest market on Earth” is art.

 In fact, experts say this art could net a bigger payday for investors than stocks, real estate and private equity.

Here’s why:

• Contemporary art prices outperformed the S&P by 174% from 1995–2020

• In 2017, a single painting sold for $450 MILLION 

• This week $1.6 BILLION worth of art could be sold at auction

But you obviously don’t have $1.6 billion, so maybe none of this applies to you. Now, you can access the hottest market on the planet with Masterworks.io, NYC’s newest tech unicorn.

Their revolutionary tech platform lets you invest multimillion-dollar art by Picasso, Warhol and Banksy just like a company’s stock. 

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4. Book of the Day: Algorithms to Live By: The Computer Science of Human Decisions

All our lives are constrained by limited space and time, limits that give rise to a particular set of problems. What should we do, or leave undone, in a day or a lifetime? How much messiness should we accept? What balance of new activities and familiar favorites is the most fulfilling? These may seem like uniquely human quandaries, but they are not: computers, too, face the same constraints, so computer scientists have been grappling with their version of such issues for decades. And the solutions they've found have much to teach us.

In a dazzlingly interdisciplinary work, acclaimed author Brian Christian and cognitive scientist Tom Griffiths show how the algorithms used by computers can also untangle very human questions. They explain how to have better hunches and when to leave things to chance, how to deal with overwhelming choices and how best to connect with others. From finding a spouse to finding a parking spot, from organizing one's inbox to understanding the workings of memory, Algorithms to Live By transforms the wisdom of computer science into strategies for human living.

5. Short Squeez Picks

6. Daily Visual: Most Popular US News Topics

Source: Axios

7.  Daily Acumen: Burnout

“In a September survey of nearly 700 professionals by consulting firm Korn Ferry, 89% said they were suffering from burnout. Some workers are leaving their jobs as a result. Others are moving to other cities or making similarly drastic changes.

But you don’t have to quit your job to combat burnout. There are ways to self-assess, work with your manager and improve your mental health.

Take a personal inventory

Running through a series of questions can help determine whether you are burned out, depressed or suffering anxiety. Are you more impatient with co-workers or clients? Do you find it hard to concentrate? Do you have unexplained headaches, stomach or bowel problems or other physical complaints?

Burnout researchers recommend people who acknowledge the issue probably won’t be cured with an extra day off work or trip to the spa. Instead, workers and employees should work together to find a more permanent solution, such as more manageable workloads and timetables.

Devise a plan of attack

Before talking to a manager about feelings of burnout, make a plan and have your thoughts in order. Compose an email that states you want to talk about the job’s target goals and expectations and how to best meet them.

Ensure the conversation stays positive. Remember, it is reasonable to ask your boss to help you prioritize projects, delegate and take vacation time.”

Source: WSJ

8. Memes of the Day

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