Monday morning briefing: Elon bails on Bitcoin
Athletes continued to rake in big bucks in 2020 despite the pandemic. The highest paid athlete in 2020 was Ultimate Fighting Championship star, Conor McGregor, who earned US$180 million, according to Forbes’ list of the Top 10 highest-paid athletes. Despite the pandemic hindering many sporting events, including the Olympics in Japan, sports returned to television. That said, most events had few to no in-person attendees. In earning much of their income through endorsements and other sources, athletes are understanding a key financial pillar: diversification.
Economic/industry news
U.S. inflation rate exceeds expectations: Inflation speeds up in April as consumer prices leap 4.2%, fastest since 2008
U.S. retail sales miss forecasts in April: U.S. retail sales unchanged in April
Diversify by industry, not country, according to a new study: Why investing by country is the wrong way to approach equity portfolios
Higher inflation may help value stocks: Why rising inflation may help sustain value’s recovery
Global IPO activity is surging in 2021: The IPO market is booming
Reasons for hope
Hopeful for more reopenings and social interactions by the fall: Trudeau’s ‘one-dose summer’ pitch raises hope for reopening plan
A look at reopenings around the world: When will international travel return? A country-by-country guide to coronavirus recovery
Celebrating our nurses: Former COVID-19 patients surprise their front-line heroes on National Nurses Day
Adapting your business
Better perception of asset managers who have a strong commitment to diversity and inclusion: The ‘hidden competitive advantage’ that sets apart consultants’ favorite asset managers
Tips to manage your start-up costs: 8 strategies for lowering your startup costs
Protecting privacy and anonymity in crypto transactions: Protecting your Bitcoin transactions
Understanding and preparing for client-focused reforms: What KYP reforms mean for advisors
Advisors need to know these important ESG trends: Three key ESG trends advisors need to be aware of
Chart of the week: Elon bails on Bitcoin
The price for Bitcoin came under pressure last week as the massive amount of electricity required to mine Bitcoin caught the public’s eye, as well as the attention of billionaires and policy makers. U.S. Treasury Secretary Janet Yellen voiced concern about the impact this mining is having on the environment. According to the Cambridge Bitcoin Electricity Consumption Index, mining for Bitcoin uses more energy than the energy required for some countries.
Now Elon Musk, previously a proponent of Bitcoin, has chimed in and expressed concern about the environmental impact of Bitcoin. Tesla has suspended the purchases of its vehicles using Bitcoin. The company will maintain its Bitcoin holdings and will not sell any until the environmental impact of Bitcoin is minimized. The news sent the price of Bitcoin spiraling down on May 13, hitting its lowest level since February, before paring back some of those losses. Can Bitcoin regain confidence and become more energy efficient? Let us know what you think..
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
It’s been a strong start to the year for hedge funds: Hedge funds are on a roll with strongest Jan-to-April returns in 20 years
Interest in SPACs may be waning: SPAC mania gives way to ‘meh’ as ETFs drop toward all-time lows
It’s not a Bitcoin ETF, but at least it says “crypto”: First ETF with ‘Crypto’ in name starts trading Wednesday on NYSE Arca
Cryptocurrency under custody keeps growing at Gemini: Gemini surpasses USD30bn in crypto under custody
News and notes (Canada)
CI acquires a San Diego-based RIA: CI acquires US$5.1B San Diego-based RIA
Sterling Mutuals adding ETFs to its lineup: Sterling Mutuals adds ETFs to product shelf
Canadians concerned about the housing market: Freaked-out Canadians open to rate hikes to cool hot housing market
FSRA wants a central database of title-users: FSRA updates title reg proposal