Rather than “Will cryptos drop to zero?” “Investors should instead ask themselves this question, says strategist – fr

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Rather than “Will cryptos drop to zero?” “Investors should instead ask themselves this question, says strategist – fr



Stocks climb back to the end of a volatile week for stocks and cryptocurrencies. Another tweet from Tesla boss Elon Musk kept the flow of information going about the latter which made a popular coin soar (see below).

This brings us to our call of the day from Nordea Investment’s senior macro strategist, Sébastien Galy, who suggests that instead of wondering if cryptocurrencies like bitcoin could drop to zero, investors should ask, “What’s next?”

“In theory, any good that can be replicated ad infinitum is zero or its marginal cost from a supply perspective. Still, demand is clearly there with the commodity moving into the mainstream and we are assuming that it will stop growing upward in a few years to move with inflation. The question is, what will replace this product, ”Galy said in a note to customers.

The answer? Artificial intelligence, said the strategist, who sees weaker growth and below target inflation within a decade in many aging developed markets, as well as China.

“Anything related to higher productivity, like AI [artificial intelligence] and automation is likely to be all the rage. Each year the AI ​​generation slowly becomes more capable after a very slow upward trend in microchip development, but the potential benefits for those who hold the upstream are likely wild, ”he said. .

“If you can buy the right company that conducts research on AI, it will be the one that delivers better generations of AI decades from now in a slow development process. Ultimately, AIs will take control of a growing portion of our economies in a slow process of accretion over decades, ”he added in email comments.

Nordea’s Global Disruption Fund invests in Google Alphabet’s parent company GOOGL,
+ 2,21%,
online retailer Amazon.com AMZN,
+ 1,94%
and Chinese tech giant Tencent 700,
+ 0,52%.
The list of AI funds is long, including the ARK Autonomous Technology & Robotics ARKQ ETF,
+ 3,46%,
l’ETF iShares Robotics and Artificial Intelligence ETF IRBO,
+ 3,48%,
and dozens more listed on the ETF database.

Galy believes that as cryptocurrencies mature, the growing demand is likely to fade and we will see “stability enhanced by options trading.” The question is whether overly loose monetary policies will continue to push commodities up or whether they will start to move with inflation over longer periods of time. Over a ten-year period, more orthodox monetary policies suggest that cryptos will start trading with longer-term inflation. “

Retail sales and the return of dogecoin

Tech is the leader in YM00 equity futures,
+ 1,23%

ES00,
+ 1,64%

NQ00,
+ 2,23%
higher before the market opens. Data showed April’s retail sales were flat, after surging more than 10% in March. The University of Michigan consumer confidence index is due later. SXXP European equities,
+ 1,19%
are up and Asian stocks rebounded strongly, led by the Nikkei 225 NIK,
+ 2,32%,
if Singapore stores 180987,
+ 0,00%
fell 3%, as the country returned to lockdowns following the rise in COVID-19 cases.

Dogecoin DOGEUSD cryptocurrency meme,
+ 44,79%
jumped to 56 cents after Tesla TSLA,
+ 3,16%
General Manager Elon Musk tweeted Thursday evening, “Working with Doge developers to improve system transaction efficiency. Potentially promising. He recently said that bitcoin BTCUSD,
+ 2,06%
would no longer be accepted as a means of payment for the company’s electric cars, for environmental reasons. Bitcoin BTCUSD,
+ 2,06%
remains at the top of $ 50,000.

COIN of the Crypto Coinbase platform,
-2,54%
the results were more than expected, with 56 million verified users, and further growth expected.

Disney DIS,
-2,60%
Shares are down, after the media and entertainment giant’s theme park revenues beat expectations, but Disney + ‘s streaming results have been disappointed. Disney’s sports channel ESPN announced an 8-year deal to exclusively broadcast LaLiga games in the United States on its streaming channel.

Fisker FSR,
+ 5,53%
Shares are skyrocketing, after the electric vehicle company announced plans to make cars in the United States with a manufacturing partner that has worked with tech giant Apple AAPL,
+ 1,98%
the past.

Israeli artillery shelled northern Gaza early Friday, as fighting between the two sides escalated.

Table

Our chart of the day by Larry Tentarelli, editor and publisher of the Blue Chip Daily Trend Report, focuses on his top-ranked area right now – health.

“This sector continues to show relative improving strength, with many leaders currently at or near breakout levels. The group also has reasonable valuations, in a market that has become more valuation-driven over the past 8 to 12 weeks, ”he writes on Blue Chip Daily.

AbbVie ABBV,
-0,15%,
GlaxoSmithKline GSK,
+ 1,09%,
Pfizer PFE,
-0,20%,
HCA Healthcare HCA,
+ 1,94%
and Laboratory Corp LH,
-0,75%
“Could continue to perform well based on their current trends,” he said.

Random readings

What’s on the menu of the future? Maggots and seaweed.

Here’s how billionaires got even richer during the COVID-19 pandemic.

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