Month: January 2018

Asian stocks record slight declines; investors focus on political developments

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian markets traded lower early on Monday as investors kept an eye on political developments in the U.S. after a government shutdown began last week. Meanwhile, the euro and pound both traded higher following weekend political moves.

Japan’s Nikkei 225 hovered around the flat line in the early going. Automakers were mixed: Toyota declined 0.66 percent while Mitsubishi Motors tacked on 1.04 percent. Technology stocks traded mostly higher, with Sony rising 1.09 percent and SoftBank Group advancing 0.71 percent.

Meanwhile, South Korea’s Kospi declined 0.54 percent as index heavyweight Samsung Electronics fell 2.11 percent in early trade. Other technology stocks also declined, with chipmaker SK Hynix declining 1.77 percent and LG Display slipping 0.49 percent.

The manufacturing, finance and retail sectors traded lower for the most part, with steelmaker Posco losing 2.72 percent and Lotte Shopping edging lower by 0.43 percent.

Down Under, the S&P/ASX 200 gave up gains seen earlier in the session to trade lower by 0.07 percent. The heavily-weighted financials sector declined 0.51 percent, weighing on the broader index. Shares of Commonwealth Bank sank 1.1 percent, underperforming other banking names in the morning.

National Australia Bank, another of the country’s “Big Four” banks, is reportedly considering spinning out its wealth arm for a potential listing, the Australian Financial Review reported, citing sources. NAB shares were lower by 0.41 percent.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dow closes 97 points lower as concern over government shutdown looms

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Dow Jones industrial average fell on Thursday as investors assessed the possibility of the government shutting down at the end of the week.

The 30-stock index closed 97.84 points lower at 26,017.81 after falling 168.33 points at its session lows. The S&P 500 alternated between gains and losses throughout the session before closing 0.2 percent lower at 2,798.03.

Congress needs to pass a spending bill by the end of Friday to avoid a government shutdown. Historically, a government shutdown has led to a short-term pullback in the stock market.

“This is definitely related to the shutdown,” said Larry McDonald, head of the U.S. macro strategies at ACG Analytics and creator of The Bear Traps Report. “The chances of a shutdown have increased in the past few weeks, but the market’s been ignoring it.”

The Dow and S&P 500 posted record closes on Wednesday, shaking off a sharp intraday reversal in the previous session. The Dow closed above 26,000 for the first time, while the S&P 500 finished above 2,800 for the first time.

“Congress trying to avert a government shutdown is a concern,” said Anthony Conroy, president at Abel Noser. “People are also taking a bit off the table. We’ve had record after record after record.”

Stocks are off to a strong start this year. The Dow, S&P 500 and Nasdaq composite are all up at least 4.8 percent for 2018, adding to last year’s strong gains.

Equities have been boosted this year by optimism in the U.S. economy and expectations for a strong earnings season. Thus far, the earnings season is off to a good start.

Of the S&P 500 companies that had reported as of Wednesday morning, 78 percent have surpassed earnings-per-share estimates while 89 percent have beaten expectations on the top line, according to Nick Raich, CEO of The Earnings Scout.

Morgan Stanley and BB&T Corp. both reported better-than-expected earnings and revenue on Thursday. Their shares rose.

“In our view, the market has not adjusted expectations up enough to reflect the current tailwinds for economic and EPS growth, especially given the recent tax legislation,” Tony Dwyer, chief market strategist at Canaccord Genuity, said in a note Wednesday. Dwyer was referring to the tax bill signed by President Donald Trump last month, which cuts the corporate tax rate to 21 percent from 35 percent.

Elsewhere in corporate news, General Electric shares hit their lowest level in six years, breaking below $17 for the first time since December 2011.

The benchmark 10-year yield rose to trade at 2.62 percent, near a multi-year high.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Most Asian markets carve out moderate gains despite softer US lead

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Major indexes in Asia were mostly higher on Friday although the Australian benchmark tracked lower. Wall Street, for its part, closed its Thursday session with slight losses amid political concerns.

Japan’s benchmark Nikkei 225 index rose 0.22 percent in early trade. The index had touched a fresh 26-year high in the last session, but pulled back from that level later in the day.

Automakers and financials were mostly higher on Friday. Mitsubishi Motors rose 1.29 percent, outperforming other major auto stocks, with heavyweight Toyota higher by 0.12 percent in the morning. Among technology names, Nintendo rose 2.5 percent, extending gains following its Thursday release of new Nintendo Switch accessories.

In South Korea, the Kospi tacked on 0.17 percent. Automakers were in positive territory, although technology and manufacturing plays traded mixed. Index heavyweight Samsung Electronics rose 0.36 percent in early trade while rival SK Hynix was lower by 0.27 percent.

Down Under, the S&P/ASX 200 was little changed, trading 0.06 percent below the flat line. Major mining stocks were lower in the early going, with Rio Tinto losing 0.63 percent and BHP edging down by 0.06 percent.

U.S. stocks closed lower on Thursday as investors focused on the likelihood of a government shutdown. That came despite corporates stateside posting solid quarterly earnings: As of Wednesday, 78 percent of S&P 500 companies that have reported topped expectations, according to Thomson Reuters I/B/E/S.

Still, the immediate focus for markets stateside remained a Friday deadline for the U.S. Congress to pass a stopgap funding bill.

In light of that, the Dow Jones industrial average declined 0.37 percent, or 97.84 points, to close at 26,017.81.

The dollar was steady after edging down in the last session ahead of the looming Friday deadline stateside. The dollar index, which tracks the U.S. currency against six major peers, traded at 90.495 at 8:27 a.m. HK/SIN after falling as low as 90.113 overnight.

Weakness in the dollar saw the euro and British pound hold onto overnight gains. The greenback also drifted lower against the yen to fetch 110.87, compared to Thursday’s close of 111.05.

The Australian dollar rose to trade at $0.8019 in the wake of strong China economic data released in the previous session.

Corporate news

Japan’s SoftBank Group on Thurday became Uber’s largest shareholder after it officially closed a high-profile deal with the ride-hailing company. The deal had valued Uber at around $48 billion, which was a discount to a previous valuation of nearly $70 billion. SoftBank shares were off by 0.4 percent in early trade, underperforming most other Japanese tech stocks, which traded higher.

Meanwhile, Ping An Insurance Group has raised almost $1 billion in funding ahead of a planned listing of a medical data unit, Reuters reported, citing sources. Ping An said in a Thursday statement that it was “proactively developing” technologies that supported its main business, but advised “caution when dealing in the securities” of the company.

What’s on tap

Here’s the economic calendar for Friday (all times in HK/SIN):

9:30 a.m.: China fourth-quarter industrial capacity utilization
4:45 p.m.: Hong Kong business confidence

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bitcoin and ethereum suffered massive drops, but many cryptocurrencies are faring even worse

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Most major digital currencies sold off sharply on Tuesday, but the declines in bitcoin, ethereum and litecoin prices weren’t as bad as much of the rest of the market.

All of the top 20 digital currencies — by market value — suffered double digit losses over the last 24 hours, according to data from industry website CoinMarketCap.

For example, ripple was down 26 percent, bitcoin cash was down 24 percent, iota was down 27 percent and monero was down 22 percent as of 8:51 a.m. HK/SIN.

In fact, at their low point on the day, many cryptocurrencies with large market caps saw their prices essentially halved.

On the other hand, bitcoin was down 17 percent at that time, ethereumwas down 19 percent and litecoin was down 19 percent, according to the same site.

The declines followed speculation in the market about what regulators in Asia may be planning for digital tokens.

On Monday, a report from Bloomberg, citing unnamed sources, said Beijing plans to block domestic access to Chinese and offshore cryptocurrency platforms that allow centralized trading.

Last week, South Korean Justice Minister Park Sang-ki said his ministry was preparing a bill that, if passed, could ban trading via cryptocurrency exchanges. His comments roiled the market and subsequently the justice ministry and other sections of South Korea’s government have softened their stance.

Bitcoin was down 14.35 percent over the last day — at $11,260 — at 8:47 a.m. HK/SIN on Coinbase.

Coinbase is the leading U.S. marketplace for trading bitcoin, ethereum, litecoin and bitcoin cash.

Late Tuesday afternoon, bitcoin briefly dropped below $10,000 on Coinbase, after first topping the psychologically key level in late November. In December, the cryptocurrency managed to top $19,800. But still, bitcoin remains more than 1100 percent higher over the last 12 months, according to Coinbase.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Apple’s iPhone 7 Plus was the second-best selling phone in China last year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Apple was the only foreign brand to have a smartphone model in the top 10 best-selling handsets in China in 2017.

The iPhone 7 Plus managed 2.8 percent of all sales in the world’s largest smartphone market, according to data from Counterpoint Research released Monday. Apple’s large-screen device trailed the Oppo R9s which gained 3 percent market share.

Apple’s iPhone 7, which was released in September 2016, did well in the first half of 2017, then benefited in the second half thanks to a price cut in China, Counterpoint analyst James Yan said in a blog post Monday.

Yan said the iPhone 7 Plus with the 128GB hard drive saw its price slashed around 16 percent.

The smaller-screen iPhone 7 was the fifth best-selling device in China with 2.4 percent market share.

“iPhone 7 Plus performed better than iPhone 7, demonstrating that currently in China market price may not be the only concern among consumers. Apple users may value more on better specs … than extra budget,” Yan said.

Vivo’s X9 and the Oppo A57 made up the other two phones in the best-selling smartphone top five list from Counterpoint.

Apple has struggled in the past two years in China but recent earnings show signs of a turnaround taking place. In the technology giant’s fiscal fourth quarter, revenue from Greater China was up 12 percent year-on-year.

China is an incredibly competitive smartphone market, and one where Samsung used to dominate. But it is now controlled by local Chinese players. Huawei accounted for 19.4 percent market share in the third quarter of 2017, followed by Oppo, Vivo, Xiaomi and then Apple, according to IDC data.

Huawei has been spending aggressively on marketing and this has paid off. It is now the third-biggest smartphone maker in the world by market share. The technology giant has gained share by releasing several smartphones at different price points to appeal to a broad range of consumers.

Oppo and Vivo, which are both owned by BBK Electronics in China, grew rapidly last year. They sell high spec phones at a mid-tier price in China, and have managed to gain share by selling their devices via offline channels, allowing them to expand their reach into smaller towns and cities.

“Instead of filling the market with extensive selection of models (like Samsung), OPPO have comparatively offered limited number of models and put more muscles behind promotion of key products,” Yan said.

Best-selling smartphones in China in 2017:

Oppo R9s
iPhone 7 Plus
Vivo X9
Oppo A57
iPhone 7
Oppo R11
Vivo Y66
Honor 8 Lite
Xiaomi RedMI Note 4X
Honor Enjoy 6X

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

China consumer group seeks answers from Apple about slowing iPhones

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A Chinese consumer group has asked Apple for information about the slowing of older iPhones after operating system updates, demanding a reply before Friday, state news agency Xinhua reported.

The query from the Shanghai Consumer Council came in response to consumer feedback that old iPhones became sluggish after upgrading the software to iOS 10.2.1, it said.

In a letter to Apple on Monday, the council requested an explanation for the slow-down and information about what Apple planned to do to rectify the problem, Xinhua reported.

The California-based company acknowledged in December that iPhone software can slow down some phones with battery problems and apologized for the issue. It also cut battery replacement costs and said it would change its software to show users whether their phone batteries were working well.

The Shanghai Consumer Council, a non-government organization approved by the Chinese authorities, said it had received 2,615 complaints about Apple products and services in 2017, compared with 964 complaints in 2015.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

China is reportedly raising the bar on its cryptocurrency crackdown

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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China is targeting websites and mobile apps that offer cryptocurrency exchange-like services, it was reported Monday.

Beijing plans to block domestic access to Chinese and offshore cryptocurrency platforms that allow centralized trading, Bloomberg said, citing unnamed sources.

Chinese authorities will also target people and companies that provide market-making, settlement and clearing services for centralized trading, Bloomberg said. It did not describe those plans in any further detail.

The country shocked the digital currency world in 2017 when it moved to ban initial coin offerings (ICOs) — a means for start-ups to raise funds by selling off new cryptocurrencies — and shut down domestic cryptocurrency exchanges.

Last week, major digital currencies fell after reports of South Korea banning cryptocurrency trading via exchanges emerged. Bitcoin made a recovery Monday, however, trading 4.78 percent higher on CoinDesk at $14,269.80 a coin. CoinDesk’s bitcoin price index tracks prices from digital currency exchanges Bitstamp, Coinbase, itBit and Bitfinex.

CNBC contacted the People’s Bank of China but it was not available at the time of publication.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Buy India Cements, ICICI Prudential: Sandeep Wagle

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sandeep Wagle of powermywealth.com told CNBC-TV18, “One may buy India Cements with a stoploss of Rs 196 and target of Rs 207.”

“One may buy ICICI Prudential Life Insurance Company with a stoploss of Rs 412 and target of Rs 432.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian shares gain as the dollar remains on the back foot

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Major indexes in Asia notched gains on Monday after Wall Street closed out last week at records and the dollar remained on the back foot.

The Nikkei 225 rose 0.54 percent as technology and financial names rose early in the session. Automakers proved to be a mixed picture.

Shares of SoftBank Group jumped 4.26 percent following news from Nikkei Asian Review that the company aimed to list SoftBank Corp., its mobile arm, both in Tokyo and abroad this year. The listing could raise around 2 trillion yen ($18 billion) for the company, Nikkei added.

SoftBank said in a statement the listing of its mobile unit was an option for the company, but that no official decision had been made.

Across the Korean Strait, the Kospi tacked on 0.34 percent in early trade. Heavyweight Samsung Electronics, which had fallen for most of last week on the release of poorer-than-expected profit guidance, added 1.16 percent. Other tech names, however, were in negative territory, with SK Hynix declining 1.34 percent.

Meanwhile, bitcoin-exposed stocks retraced losses seen last week following news about a potential ban on cryptocurrency trading in South Korea. Omnitel rose 21.31 percent and Kakao advanced 3.2 percent.

Sydney’s S&P/ASX 200 rose 0.34 percent, with the materials and gold producer sectors among the best-performing in early trade. Major miners BHP and Rio Tinto were up 1.21 percent and 1 percent, respectively.

Gold producers were also in positive territory on strength in the yellow metal linked to dollar softness. Newcrest Mining rose 2.66 percent and Evolution Mining was up 4.69 percent.

MSCI’s broad index of shares in Asia Pacific excluding Japan on Monday recorded a fresh record high, clearing a more than 10-year peak of 591.50. The index was up 0.25 percent at 591.65 at 8:05 a.m. HK/SIN.

US stocks touched record levels on Friday after major banks, including J.P. Morgan and Wells Fargo, announced better-than-expected quarterly reports. Earnings season kicked off last week and is expected to be robust, with fourth-quarter S&P 500 profits forecast to increase 11.2 percent, according to UBS.

The Dow Jones industrial average advanced 0.89 percent, or 228.46 points, to close at a record high of 25,803.19.

U.S. markets will be closed on Monday for Martin Luther King, Jr. Day.

Meanwhile, data released Friday showed US consumer prices excluding food and energy rose 0.3 percent in December from the prior month, beating the 0.2 percent forecast in a Reuters poll. Retail sales for December rose 0.4 percent compared to the month before while November figures were adjusted upwards.

The dollar index, which tracks the US currency against a basket of six currencies, was flat at 90.900 at 8:46 a.m. HK/SIN. That was below the close of 90.902 last session despite the positive consumer price read on Friday. The index had traded at levels around the 92 handle at the beginning of last week.

The euro was mostly steady at USD 1.2188, trading near its highest levels in around three years. The common currency advanced following Friday news that German Chancellor Angela Merkel had made progress on the formation of a coalition government. It also followed the release of European Central Bank minutes earlier last week that had been interpreted as hawkish by markets.

Against the yen, the greenback traded at 111.03.
Corporate news

In other public offering news, online finance platform Lufax aims to list in Hong Kong in April, the South China Morning Post reported on Friday, citing anonymous sources. Lufax’s potential IPO would come hot on the heels of other “new economy” companies in Hong Kong last year, including online-only insurer ZhongAn Online Property & Casualty Insurance.
What’s on tap

Here’s the economic calendar for Monday (all times in HK/SIN):

12:00 p.m.: Indonesia trade data
2:00 p.m.: Japan machine tool orders
2:30 p.m.: India wholesale price index data

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

If you own bitcoin, Warren Buffett’s cryptocurrency predictions are scary. How to cope

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Billionaire investor Warren Buffett says cryptocurrencies are headed for trouble.

“We’ll never have a position in them,” Buffett, chairman and CEO of Berkshire Hathaway, told CNBC’s “Squawk Box” Wednesday morning. “I can say with almost certainty that they will come to a bad ending.”

If those ominous words aren’t enough to stress investors out, earlier this week, the popular cryptocurrency ripple plunged almost 13 percent and bitcoin shed nearly 8 percent of its value.

Owning an asset that’s been called both a fraud and the future can be an emotionally intense experience.

When bitcoin lost 30 percent of its value on Dec. 22, for example, one post on Reddit read: “I just re-financed my house to get in. I’m freaking out.” Another user offered support to the frantic: “If anyone’s actually depressed or suicidal, come to r/SuicideWatch. We love to listen and talk there.”

It’s the 24-hour cycle of cryptocurrencies that can wear on people’s nerves, said Jim Smigiel, CIO of absolute return strategies at SEI Investments Co.

“With other speculative investments, like private equity and venture capital, you can’t check your phone every five minutes,” he said. With cryptocurrencies, “You’re able to track the minute-by-minute value of it.”

“Looking at something with such high volatility all the time is not conducive to an investor’s mental health,” Smigiel said.

Here’s how to keep calm on the cryptocurrency roller coaster:

Look away

Bitcoin’s volatility is part of what makes it irresistible, said Willemien Kets, associate professor at the University of Oxford’s Department of Economics.

“We know from social psychology that the best way to get people hooked on something is to give them a reward on a very uncertain time frame,” Kets said.

Don’t fall into the trap. Checking the value of cryptocurrencies constantly is unproductive, Kets said.

“You can’t do anything about the price movement itself,” she said.

Instead she recommends people decide on a price point at which they’ll sell — say, if the asset drops below $10,000 — and set their phone to alert them at that threshold.

Jack Tatar, co-author of “Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond,” pointed to another reason why constant phone checks are futile.

“It’s very hard to realize the gains you see on your phone,” Tatar said. “These markets are not as liquid as the stocks and bond market. You can check your phone and see you’re up to $30,000, but if you wan’t to realize that gain, you probably won’t be able to do that.”

That’s because it can take days for a cryptocurrency transaction to complete, during which the value can change substantially. Despite his advice, Tatar admitted he, too, can’t look away.

“My son has tried to tell me to take a few days off,” he said. “But I just can’t.”

Buy to hold

When people buy and sell in a dizzied cycle, they miss the bigger picture of cryptocurrencies and the blockchain technology on which it’s traded, said financial advisor Ric Edelman, founder and executive chairman of Edelman Financial Services.

“There’s no question that digital currencies are the future,” Edelman said. “You should be prepared to own it for years.”

He said his decision to hold bitcoin for more than a decade has paid off.

“I’ve watched it go from $1 to $1,000, back to $200 and then to $16,000,” he said.

Although he acknowledged that such ups and downs are intolerable for some people.

“If owning this asset is causing you to stare at the ceiling at night, you shouldn’t own it,” he said. “There’s more to life than money.”

Peter Ayton, who studies behavioral decision theory at the City University of London, said it’s hard to expect people to be rational with cryptocurrencies. Many people who’ve been seduced by bitcoin are individuals who might not fully understand what they’re buying, he said.

“When you have something as volatile as bitcoin, it doesn’t lend itself to long-term strategic thinking,” Ayton said.

Diversify beyond bitcoin

Michael Sonnenshein, investments director at cryptocurrency firm Grayscale, said people might be less anxious if they’re not banking on just one cryptocurrency.

Fortunately, you don’t have to: There are currently some 2,000 cryptocurrencies to chose from. And more investment firms are looking into establishing index funds for cryptocurrencies. For example, Grayscale is soon launching a “basket of digital currencies,” in which investors’ money will be spread across five digital currencies.

Diversifying is useful for another reason, Edelman said: “It’s so early, we don’t know which cryptocurrencies will survive.”

Invest only what you can afford to lose

Tatar said people must restrict how much of their investments go to cryptocurrencies.

“You’re seeing too many people jumping in and betting the ranch, and just saying ‘yee-haw!'” he said. “They’re not disciplined enough to realize they have to stay within their asset allocation models.”

“Re-balancing” your investments is essential with cryptocurrencies, he said, because of their tendency to rapidly change value.

“If you’ve invested 20 percent of your portfolio into bitcoin, and all of a sudden you check and, lo and behold, your bitcoins have increased so much that they’re now 35 percent of your portfolio, you can rebalance and go back to your asset allocation,” Tatar said. “That should protect you from some of that volatility.”

It’s not just the owners of cryptocurrencies who are stressed, Smigiel said. Recently, he finds himself consoling his clients who haven’t bought any bitcoin, ripples or ethereum.

“We also see anxiety on the flip-side — the people who feel they are missing out,” he said. “And so you’re anxious either way.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow