One Month after Tesla, Revisiting the Business Case for Bitcoin March 15, 2021
Recently, Tesla made waves in the financial markets by adding $1.5 billion worth of it Bitcoin to its balance sheet. That could be the start of something more substantial for the largest cryptocurrency as more companies follow suit.
Tesla also said it bought $1.5 billion worth of Bitcoin, which will be accounted for on its balance sheet as goodwill. Having $1.5 billion worth of Bitcoin on hand will provide the automaker with sufficient liquidity to conduct business in the cryptocurrency.
Some financial pundits are suspicious of Tesla’s move into Bitcoin however, as it represents an investment of a large percentage of its cash over 7% of the more than $19 billion that the automaker possessed in cash and cash equivalents on hand at the end of 2020, according to its most recent filing.
How Rising Rates Could Be Huge for Regional Bank ETFs
The recent spike in Treasury yields gave regional banking assets like the
Invesco KBW Regional Banking ETF (KBWR) a big boost. Many market observers believe this corner of the banking sector is primed for more upside this year.
KBWR seeks to track the investment results of the KBW Nasdaq Regional Banking Index. The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index.
The underlying index is a modified-market capitalization-weighted index comprised of companies primarily engaged in U.S. regional banking activities, as determined by the index provider. The underlying index is designed to track the performance of U.S. regional banking and thrift companies that are publicly-traded in the United States.
On the Value-Growth Fence? TILT Into Value with This ETF March 15, 2021
The value factor is roaring back to life. Investors can capitalize on that trend without being fully allocated to said stocks with the
TILT tries to reflect the performance of the Morningstar U.S. Market Factor Tilt Index, which provides enhanced exposure to U.S. equities by tilting the portfolio toward long-term growth potential of small cap and value stocks.
“The recent rotation into value has caused some long-dormant stocks and sectors to wake up, but not every value play is getting enough attention, according to Bank of America,” reports Jesse Pound for CNBC. “Cyclical sectors, such as energy stocks, are having one of their best stretches in years, and value fund managers are seeing major returns. However, the firm said in a note that investors may want to look at stocks that haven’t seen a surge of interest.”
Should You Buy Gold Mining ETFs on the Dip? March 15, 2021
Recent lethargy in gold might seem to be unappealing, but it could also spell opportunity for investors embracing high quality mining assets, such as those found in the
SGDM tracks the Solactive Gold Miners Custom Factors Index and “emphasizes gold companies with the highest revenue growth and free cash flow yield, and the lowest long-term debt to equity ratio,” according to the issuer.
The fund’s focus on quality, one that traditional peers often lack, may help investors position for a rebound in mining equities.
“The gold market has struggled early in 2021 as bond yields have spiked to a one-year high. However, Rory Townsend, head of gold research at Wood Mackenzie, said in a telephone interview with Kitco News on the sidelines of the Prospectors & Developers Association of Canada (PDAC) virtual mining conference that he sees the rise in bond yields as a bit of a head fake and that gold prices should recover