#84 - The Canadian Stock Market Is Back Baby, Good Government Spending and Cryptocurrencies
In this week's episode of Reformed Millennials, Broc and Joel talk about the burgeoning bull market in Canadian Stocks, the impacts of the Vaccine roll out and they dive into Crypto and the Coinbase S-1..
Tune into this one if you want to catch Broc and Joel’s take on government R&D and its impacts on the future of a countries output and wages.
Listen on Apple, Spotify, or Google Podcasts.
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👉 For specific investment questions or advice contact Joel @ Gold Investment Management.
U.S. stocks hit new record highs in yesterday's session, and the risk-on sentiment remains in place around the world. Overnight the MSCI Asia Pacific Index added 0.6% while Japan's Topix index closed with a 0.6% gain.
Bigger the Base, the Bigger the Space.
Canada vs. USA – Canada Breaking Out
What is in the TSX and TSX Venture?
Overwhelming reversion of investors from tech to where Canada succeeds – Materials, mining and Energy
Everything is working for Canada right now. Energy is back and its back bigly.
US Energy vs. Canadian Energy:
So what stocks should we own if Canada is going to break out?
TOU (my fav)
ARX (arc resources)
In the US banks are breaking out to all time highs after a 10 year base. And as the Bank of Canada continues to tighten monetary policy, they are set to do incredibly well as we move into this secular bull market in Commodities.
💉🏩Canadian Vaccine Prediction🧬🦠
Maj.-Gen. Dany Fortin said last week that vaccine supplies have stabilized and the "ramp up" phase of the inoculation campaign is in full swing, with some 36.4 million shots now expected to arrive before the end of June.
Pfizer has dramatically increased the number of doses it will send to Canada after it successfully retooled its production plant in Belgium earlier this year. The company is expected to deliver 5.5 million shots to Canada by month's end. More than a million doses of that product will arrive each week for the next month, Fortin said.
Combined with 2 million shots from Moderna and 500,000 AstraZeneca shots from the Serum Institute of India, Canada is projecting a total of 8 million doses will be delivered in the first three months of this year.
Another 25.1 million shots from Pfizer and Moderna combined will arrive between April and June — two million more than earlier projections — along with another 1.5 million Serum-made AstraZeneca doses. Canada is also expecting 1.9 million AstraZeneca shots from COVAX, the global vaccine-sharing initiative, over this three month period.
We’re Going to back by June 2021.
🧐Crypto! And Coinbase🚀
Coinbase is Bitcoins Goldman Sachs - But Bigger.
I've always done my best to have a relatively unbiased positioning on Cryptocurrencies and this most recent bull market has made believers out of a lot of naysayers. It's funny how price can change the minds of people.
Coinbase has done a good job thus far in building a bridge between the Bitcoin zealots -whose early adoption brought trading revenue in – and the incumbent financial establishment. They’ve had almost a decade’s worth of practice communicating with regulators and answering difficult questions. As regulations take shape for the crypto-ing of financial services, Coinbase is in a highly favorable position to conduct the sort of intergroup diplomacy necessary to continue the process of mainstreaming.
Some important Stats from their S-1
Coinbase has been growing as crypto has gotten more popular, but it's been growing its share of crypto, too, from 4.5% at the end of 2018 to 11.1% today.
2020, the company earned $18.6m in custodial fee revenue in 2020, and their average share of all crypto asset custody was 10.6% for the year. So at current custody economics, the maximum size of that revenue stream with 100% market share is $174m.
Coinbase captures about 0.67% of the value of trades on its platform as revenue; in Q4, that meant $87bn of trades produced $497m in transaction revenue. By contrast, Nasdaq Inc. produced net market services revenue of $1.1bn in 2020, on around $300bn per day in cash equity trading volume.
Coinbase has 43 million customers, and cleared over a billion dollars in revenue last year.
🌊Best Links of The Week☔
Moderna For Kids? - Kidszone - Press release here
Intel’s done it again… the company’s 11th Generation Core desktop chips (aka Rocket Lake-S) are faster, and with fewer cores. See here for more
Do Amazon ads bring in more cash than AWS? Does Amazon make more money from ads than AWS? Probably. See here
Instagram Lite - Facebook launched a lightweight version of Instagram, aimed at cheap smartphones with limited bandwidth in emerging markets. 4.5bn people have a smartphone now, and 95% of the world's population has 3G coverage, but data price still have much further to fall. See here
Ray Dalio says it's time to buy stuff amid "stupid" bond economics.
What countries will fight over when green energy dominates.
U.S. small businesses are holding off the debt apocalypse. For now.
All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. For our full disclosures and disclaimer, visit our website: https://gold-im.com/disclaimer/