Weekly Update 10 Nov 2023
Stocks and commodities were mixed but all other asset classes were in the green. Ethereum was the best performing asset, gaining 19.8%, followed by the broad crypto index, up 16.3%. Largest losses were in palladium, down 10.2%, and platinum, off 5.9%.
The US Dollar led the way higher for national currencies, rising 2.7%. It was followed by the Euro, which gained 2.2%. The Japanese Yen and Chinese Yuan lagged behind, adding 1.2% and 1.4% respectively. Short term notes underperformed USD cash, rising 2.5%, but long term bonds outperformed, gaining 3.1%.
Cryptocurrencies had a very strong week, led by Ethereum's 19.8% rise which puts it back above gold ounce parity. Bitcoin lagged behind, but still posted a strong 10.4% gain. The CCi30 index of 30 cryptos added 16.3%.
Major stock market indexes were all in the green; only gold stocks saw losses, with the HUI falling 5.3%. The S&P 500 rose the most, gaining 4.1%.
Commodities were very mixed. Within the metals, palladium and platinum fell 10.2% and 5.9% respectively, while silver and copper rose 2.1% and 0.2%. Coffee gained 4.9% while cotton fell 0.2%. Even crude oil was in the red, dropping 1.5%.
Over every time frame – week, month, year, or five years – crpyto has been the place to be. If you had sold a kilogram of gold five years ago (on 10-Nov-2018) and held the proceeds in any major currency, or in treasury bonds of any duration, or invested in a stock market index fund in the US, Europe or Japan, or in a basket of gold mining stocks, or in any major commodity including platinum, silver, copper or crude oil, and sold that investment today and used the proceeds to buy gold, you would find yourself holding less gold than you started with… from 1% less to 53% less. On the other hand, had you used the proceeds of the gold sale to buy Bitcoin, and sold it today, you could buy back not just 1kg of gold but 3.6kg! And if you had chosen to invest in ETH instead, you could now buy over 6kg of gold!
Fun Fact: Despite all its extreme volatility, wild moonshots and 90% crashes, there is no day in the last 10 years on which you could have bought Bitcoin, held it for 4 years, and sold it without turning a profit as measured in gold.
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