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Market Scorecard
The Vestact house view has been to avoid cryptocurrencies because we would rather own big multinational companies, operating in exciting sectors. Having made this decision early has allowed us to take a neutral view on the crypto market, giving us the ability to be interested bystanders. We don't have FOMO when prices go up and we aren't smug when they drop. Given that we have been writing about Bitcoin since $1 000, we can't be smug until it goes below that level anyway.
Yesterday, the crypto market seemed to take a year's worth of equity market action and condense it into one day. Bitcoin started the day at around $40 000 a coin, already about 35% off its recent levels, it then dropped to around $32 000 and promptly rebounded to finish the day back at $40 000. Jeepers, what a wild ride!
It was very entertaining following the action on Twitter (NYSE:TWTR). The day started with people joking about Bitcoin holders bleeding from the eyes instead of having those red crypto laser eye profile pictures. By the end of the day, Twitter was full of people talking about how they bought the dip and were already making massive returns.
Yesterday the JSE All-share closed down 2.08%, the S&P 500 closed down 0.29%, and the Nasdaq closed down 0.03%.
One Thing, From Paul
Having well-organised personal finances is a good thing. We should all spend a bit more time keeping our home files up to date and ensuring that our income, expenses, assets, and liabilities are well-understood and in good working order.
On that note, here is an intriguing blog post written by a guy called Don Southworth, who is a priest and a tax adviser. He used to run seminars with the title "A Year to Live" where he and his class spent time planning and preparing as if they would all die at the end of the year.
He actually argues that submitting a tidy annual tax return can be a religious experience, almost as good as writing a living will or composing your own obituary (in advance). Wow, that's deep!
Here he is: "the most common feelings people express about death and taxes are anxiety and worry. This can be anxiety about being dead. But more often, it's worry about the process of dying and how it will affect those they love. Being a burden on others is the number one fear people have. Nobody wants to be a financial, emotional or spiritual burden on anyone, but especially not on those we love. But the truth is, that worry can turn into peace. Death and taxes are indeed inevitable. But when prepared for with wisdom, they're invitations to a better life."
Byron's Beats
During lockdown last year an audio clip did the rounds on WhatsApp with the most incredible spatial sound technology. The music moves around your head, through your brain, above, behind and in front of you. I remember running circles in my driveway listening to it, what a strange world that was.
The listening experience through good earphones is quite incredible. Stereo is so 2019. Now Apple (NASDAQ:AAPL) Music has the capability to fully support this new spatial audio technology and will be launching it soon.
Michael's Musings
I recently wrote about Covid causing a shift towards early retirement in the US, and I wondered if a similar trend was happening in South Africa? Yesterday, retirement industry representatives were presenting figures to the South African Parliament. It turns out South Africans can't retire early because most haven't even saved the equivalent of six months salary!
The number is actually scary. It means that as soon as someone retires, they become a burden on the state and their family. This then creates a perpetual cycle. Young people are forced to take care of their elders during the most important retirement saving years, meaning the chances are high that they won't have enough retirement savings themselves one day.
There are multiple reasons for the poor savings culture in South Africa, but it needs to improve for the nation's long-term prosperity. In this light, the #SaveWithBright savings challenge is even more valuable.
Signing Off
Tencent (HK:0700) is expected to release a quarterly update after the Hong Kong market closes. It will still be during our market trading hours though, so expect some volatility from Naspers (JO:NPNJn) and Prosus (JO:PRXJn). Asian stocks are mixed this morning and US futures are lower. The Rand is currently at $/R14.07.