Things we are reading today - April 26th, 2023

Coinbase seeks court intervention to clarify crypto regulations

Coinbase, one of the largest cryptocurrency exchanges in the United States, has filed a petition requesting the court to compel the Securities and Exchange Commission (SEC) to clarify its crypto regulations. Coinbase claims that the SEC has failed to provide clear guidance on which digital assets qualify as securities, leading to confusion and uncertainty in the crypto industry. The company hopes that a court order would force the SEC to provide a clear regulatory framework, which would benefit not only Coinbase but also the entire crypto industry.

Druckenmiller makes sole conviction trade against the dollar

Stanley Druckenmiller, a multibillionaire investor, made a risky move by engaging in an independent conviction trade against the US currency. He is structuring his investments because he thinks that the US government’s current fiscal and monetary policies will cause the dollar to fall.

Expected Alpha: A Missing Piece in Investment Goal Setting

The relevance of taking into account predicted alpha, or the possible excess returns of a portfolio relative to its benchmark, while establishing investment goals is covered in this article. While many investors concentrate on reaching predefined goals, such as a specific rate of portfolio growth, they frequently fail to take into account the possibility of outperformance through active management. Investors can more precisely analyze the risk and reward of their investment strategy and possibly produce better results by factoring expected alpha into goal setting.

New Bull Market or Bear Market Rally?

This article looks at the stock market’s current state to establish whether a new bull market or just a bear market rally is taking place. To shed light on the present market trend, the author examines a number of market indices, including the S&P 500 index, market breadth, and profits growth. Additionally, the paper offers a historical perspective on previous bull and bear markets, noting significant variations and parallels to the current situation. To conclude, while there may still be some short-term volatility in the market, the current pattern indicates that it is more likely a new bull market than a bear market resurgence.

1 Like