#68 - Stocks Rip To All-Time Highs, Video Games, Bitcoin, and Deep Fakes.
|Nov 25, 2020||2|
In this week's episode of Reformed Millennials, we're talking about the crazy week in the markets as we hit an all-time high in the Dow. Trump is psyched and investors are too. If you aren’t excited about the Dow 30, you’re going to love the new Roblox S-1 and what it means for public investors interested in the metaverse.
Oh, and we do our best to make sense of Cannabis and Bitcoin Bull markets.
Broc and Joel do their best to help make sense of one of the craziest weeks on Wallstreet.
If you aren’t in the Reformed Millennials Facebook Group join us for daily updates, discussions, and deep dives into the investable trends Millennials should be paying attention to.
👉 For specific investment questions or advice contact Joel @ Gold Investment Management.
The Dow Jones Industrial Average closed above 30,000 for the first time ever. The small-cap rally continued as the Russell 2000 ripped roughly 2% continuing the rotation out of big tech into the S&P494
Every sector except real estate finished higher. $XLRE was flat. Energy surged again. $XLE is up 40% so far this month. November could be its best month ever. 👀 See more below.
Crude closed above $44 for the first time since it went negative. Gold tumbled to prices not seen since mid-July. $GLD dropped 1.5%
Here are the closing prints:
S&P 500 3,235 +1.62%
Nasdaq 12,036 +1.31%
Russell 2000 1,853 +1.94%
Dow Jones 30,046 +1.54%
Roblox is the latest in a series of games that built a vast under-16 audience, mostly under the radar, by focusing on enabling user creativity instead of AAA graphics. See also Minecraft and Runescape, amongst others. It has 30m DAUs (54% under aged 13), $590m revenue in the first 9m of 2020, and 7m developers have created 18m games inside it - it's a platform. There are lots of obvious operational questions (trust & safety, developer payouts), but the question for kids' games is whether the users are replaced as they age out (remember Moshi Monsters? Club Penguin?), and the questions for all games investing is whether (as some argue) we are moving from a hit-based model to long-term sustained franchises.
🚀Bitcoin to the Moon?🌍
Where are all the Bitcoin bros? They seem to be in the form of institutional asset managers instead of teens in Lambos… It cracked $19K on Wednesday as it nears its record high from December 2017.
Bitcoin may make a new all-time high soon, but interest in $BTC.X seems nowhere near where it was in late 2017.
🌊 Hottest Links We Read Last Week 🌊
Energy is HOT - The energy sector ETF surged more than 5% for the second day in a row. $XLE closed at its highest price since June 16, 2020. We’ll see if it can surpass the high close from June 8th ($46.86).
👀 Move Over, Millennials - Not all young people share the same daily habits or the same views of the world. Millennials are cutting the cord. Gen Z doesn’t know what the cord is. 45% of Millennials still watch broadcast tv, compared with 26% of 16-17 year-olds.
The future is likely going to require a robust understanding of technology and its underlying infrastructure/incentives of their business models to defend ourselves from these deep fakes.
Facebook released data on hate speech - in particular, it released data on what percentage it probably makes up of total posts (0.5%).
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