Hello everyone! Welcome to this weekly roundup of Investing stories from deputy editor Joe Ciolli. Please subscribe here to get this newsletter in your inbox every week.
Hello and welcome to Insider Investing. I’m Joe Ciolli, and I’m here to guide you through what’s been happening in markets, as well as what to expect in the coming weeks. Here’s what’s on the docket:
- NFTs like NBA Top Shot are fueling a trading boom in million-dollar sports cards. The CEO of a fractional sports investing platform breaks down how digital collectibles can boost returns and hedge inflation.
- Bitcoin mining has taken some heat recently over how much energy it consumes. A Norwegian billionaire who just set up a $59 million crypto-investing unit explains why those concerns are overblown — and also breaks down his three-fold strategy for investing across the entire bitcoin ecosystem.
- Tucker Walsh and Rayna Lesser Hannaway’s small-cap growth fund has returned 104% to investors over the past year. They unpack the “flywheel criteria” they use to identify so-called compounders, and offer 3 picks that fit the bill.
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Your weekly outlook
This past week featured more tug-of-war in the stock and bond markets between fears of runaway inflation and confidence in the economic recovery. The highlight of the week was Fed Chair Jerome Powell’s press conference as part of the central bank’s rate decision, which seemingly soothed investor nerves and caused stocks to surge into the close.
Then the next day everyone seemed to get cold feet. The 10-year Treasury yield spiked yet again to a more than one-year high, signaling renewed inflation fears. That helped take a 3% bite out of the tech-heavy Nasdaq on Thursday. Now heading into next week the market once again finds itself seemingly rudderless and vulnerable to inflationary mood swings.
The input to watch this week will once again be the 10-year yield, which has become the foremost indicator of inflation fears. It’s the highest since January 2020 right now. If investors continue to question Powell’s insistence on maintaining stimulative asset purchases, it could spike even more. Then stocks — namely tech — could tank further. Stay tuned.
Investing in sports cards
The rise of sports betting and NFTs like NBA Top Shot have fueled a trading boom in sports cards. Collectable is a trading platform that allows fans to buy fractional shares of valuable cards. CEO Ezra Levine breaks down how digital collectibles could boost returns and hedge inflation.
Read the full story here:
NFTs like NBA Top Shot are fueling a trading boom in million-dollar sports cards. The CEO of a fractional sports investing platform breaks down why digital collectibles are the ‘perfect intersection of passion and profits.’
3-part bitcoin strategy
Norwegian tycoon Kjell Inge Rokke recently joined a growing list of billionaires to embrace bitcoin. In a recent 23-page shareholder letter, Rokke lays out his three-fold bitcoin investing strategy. He specifically details why he sees bitcoin as a solution instead of a problem for its perceived challenges.
Read the full story here:
A Norwegian billionaire who just set up a $59 million unit to invest in the bitcoin ecosystem breaks down his 3-fold strategy — and shares why he believes the digital currency is actually a solution to many of its perceived challenges
How to find long-term compounders
Tucker Walsh and Rayna Lesser Hannaway manage the Polen US Small Company Growth fund, which has returned 104% to investors over the past year. They unpack the “flywheel criteria” they use to identify so-called compounders, and also share three long-term small-cap stock picks set to surge as part of the reopening trade.
Read the full story here:
The portfolio managers of a small-cap growth fund that returned 104% to investors in the past year share 3 stocks that are set to surge as part of the reopening trade — and lay out how they identify long-term compounders
Stock pick central
Seeking experts who are willing to name names? Look no further:
- Bank of America names 9 stocks to buy as the vaccine rollout and stimulus checks lift consumer spending on activities like home improvement and office furnishing
- Goldman Sachs says to buy these 29 cheap stocks set to generate higher earnings next year as interest rates and bond yields continue to rise
- JPMorgan says buy these 50 beaten-down stocks as traders continue to flee high-flyers and pile into cheaper names
- Morgan Stanley says to buy these 12 stocks before their unique catalysts drive them to deliver market-beating returns
- Jefferies pinpoints 10 stocks poised to benefit the most from the strongest surge in consumer spending in decades — and explains why each one is worth buying
- BANK OF AMERICA: Buy these 17 cheap stocks set to rally as the economy bounces back and inflation lifts prices
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