Bitcoin Likely to Drop After the Halving, JPMorgan Says (1 min read) JPMorgan predicts a potential drop in bitcoin prices following the upcoming reward halving, which is expected around April 19-20. This event will slow the growth of bitcoin supply, but the bank anticipates a decline due to the market is overbought and bitcoin's current price exceeds its estimated value compared to gold and production costs. The halving will also likely force some mining companies to consolidate or move operations to regions with lower energy costs.
Vanguard Warns 10-Year Treasury Yields Risk Jump Back to 5% (2 min read) The Treasury market is close to levels that could lead to a significant selloff, with the possibility of 10-year bond yields rising to 5%. According to Vanguard, a slight increase in yields past 4.75% might prompt investors to rapidly sell off their holdings, potentially driving yields to the highest levels since 2007. This situation is exacerbated by persistent high inflation and changing expectations for Fed rate cuts. Despite some buying interest, overall sentiment in the Treasury market remains negative.
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Business & Stocks
TSMC Delivers Better-Than-Expected Outlook as AI Fuels Demand (3 min read) TSMC has reported strong revenue outlook and plans to spend up to $32 billion in 2024, indicating sustained growth in AI demand. Despite lowering growth expectations for the semiconductor market, TSMC expects a revenue increase of at least 20% this year. The company plans to start mass production of 2nm chips in late 2025 and continues to see AI-focused chips as a key growth area.
Netflix reports strong subscriber gains as earnings surge past estimates (3 min read) Netflix reported strong Q1 earnings with over 9 million new subscribers, beating expectations. However, its Q2 revenue guidance fell slightly short and the company also said it will stop reporting quarterly membership numbers and average revenue per member starting next year. This led to a drop in its stock price in the after-hour trading on Thursday. However, Netflix's profitability metrics and free cash flow are still strong and its stock is still hoving around its 52-week high.
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Funds & ETFs
A Hundred Years On, Firm Behind First Mutual Fund Plans ETFs (2 min read) MFS Investment Management, known for launching the first mutual fund a century ago, is entering the ETF market with five actively managed funds. This move reflects the mutual fund industry's shift toward ETFs, with MFS being one of the last major firms without an ETF offering. The shift comes as mutual funds continue to lose market share to ETFs, which have seen significant inflows.
Cathie Wood takes her Ark ETFs to Europe as US investors jump ship (3 min read) Cathie Wood's Ark Invest is launching three new active ETFs in Europe to capture investor interest after facing significant outflows and performance challenges in the US. Despite losing market share and criticisms of its funds’ performance in the US, Ark is targeting the European market with strategies including AI and robotics, leveraging substantial interest from European investors.
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Portfolios & Investing
Knowledge Alone Doesn’t Change Behavior (4 min read) Building mental toughness in investing is like to training athletes to cope with losses, emphasizing the long-term gains over short-term setbacks. This mindset is crucial since investing is as much about behavior as numbers. Risk-taking is necessary to outpace inflation, yet it's common for investors to falter, driven by fear or greed. This article discusses some behavior strategies that may help investors stay in the course.
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