Weekly Update 5 Feb 2021

This was an amazing week, with every asset in the table in the black! Even silver, the week's worst performer, was up a tiny 0.04%. Cryptocurrencies continue to be the big movers and shakers, as Ethereum rose 28.5% and the broader index of 30 cryptos gained 22.8%. Outside of the cryptocurrencies, crude oil was the star, adding 12.6%.

The US and Canadian Dollars shared the "best performance by a national currency" award, rising 3.4% each. The Euro and the Chinese Yuan under-performed, adding 2.3% each. Short term treasury notes tracked USD cash, rising 3.4%, but long term bonds were the week's second worst performing asset, adding just 0.8%.

Trading in Bitcoin was relatively tame this week, and as a result, it saw "only" a 14.9% gain. Most of the action was focused on Ethereum and its "De-Fi" children; ETH soared 28.5%, and many of the smaller alt-coins rose even more. After the week's trading was finished, it was announced that Tesla had quietly purchased $1.5 billion worth of Bitcoin as a treasury asset… this has since pushed crypto broadly higher and I expect next week will be a doozie!

Stocks far outperformed bonds, currencies, and many commodities. Top performers were the S&P 500, up 8.2%. and the Euro STOXX, up 8.1%. Weakest was the gold mining sector, and even it rose 4.5%.

Crude oil was the by far the strongest commodity, rising 12.8% and approaching the 1.0 gram/barrel level. Cotton was the next-best performer, gaining 6.1% for the week. Silver and palladium were the weakest commodities, as silver just broke even and palladium rose 3.9%.

Year over year, the cryptos are still in control, with ether rising 684.9% and approaching its all-time highs, and bitcoin advancing 241.8% and making new all-time highs. Outside of the crypto space, silver and copper have been the best performers, with gains of 29.7% and 21.3% respectively. Palladium has seen the worst decline, falling 17.4%. The US Dollar was second-worst, dropping 13.8% in value.

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