The bitcoin market isn’t yet mature enough to support an exchange-traded fund (ETF).
So said the U.S. Securities and Exchange Commission (SEC) last week when it rejected Bitwise’s bitcoin ETF proposal in a mammoth 112-page order that included more than 500 footnotes.
Legal experts said the decision suggests that a bitcoin ETF may still be years away. But Matt Hougan, Bitwise’s global head of research, sees positives in the decision. The SEC has at least shown it’s willing to raise addressable concerns, rather than rejecting a product out-of-hand with little explanation.
“A bad outcome would have been a cursory [filing],” Hougan told CoinDesk, adding:
“After digesting it a little bit, we’re pleased with the detail the staff provided and the clarity of what we have to do.”
Zachary Fallon, a principal at Blakemore Fallon, said that while Bitwise’s effort may not have been successful, the process was revealing – and will almost certainly help when launching a bitcoin ETF at some point in the future.
It’s a common strategy in war.
Addition by division.
Put simply, adding content and flair by dividing two sides, is a very effective means of polarizing two or more sides.
Cultural communists use it in their war on climate change “You’re either with us ditching plastic straws or you’re harming the environment”.
Economists use it to confirm their investment bias, “If you’re not a Keynesian follower then you’re not a true capitalist”.
Crypto enthusiasts use it too, “HODL or you hate Bitcoin, the future currency of everything”.
Dividing people is an easy way to engage the ones most in favor of your cause, or financial interest.
And Gold vs Bitcoin is no different.
I was recently asked to lend my thoughts in a candid interview and to “rip on bitcoin, if I hate it”.
But the truth is, I’m a profit bug.
If I can make money in gold, which we’ve done handsomely here in 2019, I will.
If I can make money in Bitcoin, which could return with a vengeance in the near future, I will.
Last week, manufacturing giant GE froze pensions for 20,000 employees.
The company has $34 billion in unfunded pension liabilities. And if it paid all its pension liabilities today, pensioners would only get 76 cents on the dollar.
By freezing pensions, GE hopes to reduce its retirement fund deficit by up to $8 billion. I say “hope” because there’s little chance it works.
That’s because the company has a big problem: declining interest rates. You see, bonds traditionally make up a large part of pension fund assets. And when rates go down, so does the income they generate.
To make matters worse, falling rates increase pension fund obligations. So even though GE is freezing pensions to save money, it’s basically just running in place… Come next year, its unfunded obligations will be even higher.
GE’s problem is symptomatic of private pensions in general.
Let's play a game...
I'll say something, and you raise your hand if it's true for you.
I'm serious. Don't raise a "mental hand." You need to actually pick your arm up. That's the rule, so play along.
"I live in the U.S."
A decent chunk of non-U.S. readers follow my work, but 80% to 90% of those reading just picked up their hands. By and large, DailyWealth readers like you are from the U.S.
OK, next up...
"I own U.S. stocks."
Just about everyone is raising their hands now. Even those outside the U.S. tend to own stocks from the world's largest and most important market. And those in the U.S. are undoubtedly invested in their own country. Why wouldn't they be?
Today I’m joined by fan-favorite and frequent guest John Petrides, portfolio manager for Tocqueville Asset Management.
We discuss two key factors he’s watching to see if this bull market can continue higher… the Federal Reserve… oil volatility in the Middle East… and generating income in this low interest-rate environment. And of course, John gives you a few of his favorite ideas to buy right now [20:12].
In my education segment, I break down my process for finding small-cap stocks due for a bounce higher. I also share several names that have fallen 20% or more from their highs… [52:28].
And you won’t want to miss my opening rant on the NBA and China…
“It’s the most profitable opportunity I know of – one where you can turn a small stake into millions.”
International Speculator editor Dave Forest said this during our second annual Legacy Investment Summit two weeks ago. He went on to reveal an urgent money-making opportunity in the mining sector.
I’ll tell you what it is in a second. And I’ll show you how you can capitalize today (including the three strange questions Dave asks before he evaluates any company).
• But first, let me tell you why it pays to listen to Dave…
Dave’s our in-house geologist who’s spent his 20-year investing career searching for new discoveries and breakthroughs. He founded his own mineral exploration and development companies, raising over $80 million in equity financing from some of the most well-known resource investors in North America.
When it comes to retirement destinations, you can find an endless number of lists ranking the best and worst spots to live out your golden years.
My take is it really depends on how you want your retirement to look.
Of course you want to stretch your dollar as far as it will go, but you’re also not going to do it at the expense of losing friends and family.
A survey by Merrill Lynch and Age Wave, found that the top reason people move in retirement is to be closer to family.
So, if your kids and grandkids are living in Michigan and you have your eyes set on sunny Florida, you might not be renting that U-Haul so fast.
That said there are some key factors to consider when choosing where to live in retirement.
Ending the repo market blowout and un-inverting the yield curve.
Since Fed Chair Jerome Powell’s initial explanation of the Fed’s new plan, and with a big push this morning from the Fed’s announcement of the actual details of the plan, the 10-year Treasury yield has jumped 23 basis points, from 1.52% when he was speaking on Tuesday to 1.75% at the moment. And the yield curve has steepened and is getting close to un-inverting. Here is what happened.
The New York Fed released a statement this morning that formalizes and details what Jerome Powell had said on Tuesday and what the FOMC minutes, released on Wednesday, had indicated the Fed would do: Buy short-term Treasury bills with maturities of one year or less, of at a pace of “approximately $60 billion per month,” starting in mid-October and “at least into the second quarter of next year,” in order to replenish the “excess reserves,” whose dropping levels have been blamed for banks’ refusing to lend to the repo market, thus triggering the recent repo blowout.