Crypto go-go: here comes the rallyBy Arnaud Masset
After falling to US$276 billion, Bitcoin’s market capitalisation nearly doubled this week to US$481 billion, and Bitcoin’s price re-crossed US$10,000 to the upside. The positive momentum will likely continue, and after the Chinese New Year (16 February), we might see another blast off. So now is good time to adjust your portfolio!
In recent weeks, cryptos went off the boil, as equities sold off and volatility exploded. Bitcoin and its peers finally took a breather and stopped free-falling. The outlook for cryptocurrencies is positive. This year will see several crypto projects deliver either beta versions or final products.
Don’t bet with the bearsBy Peter Rosenstreich
The world’s largest hedge fund, Bridgewater, is reportedly shorting a selection of European blue chips to the tune of $18 billion. Should European equity investors be nervous?
No. The recent sell-off lacks the fundamentals of a sustained correction. The US Federal Reserve Bank’s monetary tightening and the consequent rise in US yields has been well telegraphed. Higher inflation, unless it goes parabolic, is unlikely to surprise traders. The age of innocence is over on Wall Street, traders will become more vigilant, but that doesn’t necessarily mean the end of the historic bull-run. The upcoming Purchasing Managers Index for February will prove the strength of Europe’s cyclical upswing.
Goodbye Zuma, hello growthBy Vincent-Frédéric Mivelaz
South Africa’s JSE 40 Index will expand more rapidly as President Jacob Zuma steps down, following a 9-year rule marked by corruption, pork-barrelling and incompetence. Successor President Cyril Ramaphosa, former African National Congress (ANC) party leader, is expected to drain the swamp, starting with an address to the nation today.
Investors are looking at a stronger rand (USD/ZAR at 11.58) along with higher equities: the JSE 40 reached 52’565 points (+4.27%), reinforced by Industrials (+10.44%), Consumer Discretionary (+8.01%), Financials (+6.69%) and Health Care (+6.59%). With December 2017 consumer prices up 4.7% annually, inflation is subdued. January 2018 Business Confidence increased to 99.7 from December’s 96.4 – its highest since 31 October 2015. December’s trade balance was ZAR 15.7 billion, suggesting a strong economic recovery.