The S&P/ASX 200 (ASX: XJO) achieved another positive week while all three US benchmarks finished the week at record levels.
Here are my three key investor takeaways from the week.
Pump and dump
‘I pump I don’t dump’. These were the words of Elon Musk commenting on the Bitcoin and Crypto phenomenon in a discussion with Cathie Wood and Twitter’s Jack Dorsey; such is the power of being one of the richest people in the world.
The comments highlight a growing issue in crypto markets, particularly on the fringes, where new products are being created nearly every day.
The discussion highlighted a shared view of the incredible importance of cryptocurrency in levelling the global financial playing field but reiterated it was still in its infancy, with speculative fervour doing little to benefit its adoption.
Magellan’s Hamish Douglass was on the other side of the fence, suggesting Bitcoin will eventually ‘go to zero’ whilst confirming the defensive and ‘quality’ positioning of his underperforming global equity strategy.
Featured video: Hamish Douglass’ #1 money & investing tip
Headlines only half the story
The headlines of ‘lower returns ahead’ made a comeback during the week, as they seem to every few years.
Naturally, with markets near all-time highs there is a likelihood that ‘markets’ may deliver lower returns on average in the future.
Yet the majority of us are not investing into ‘markets’ but rather the companies that make up the market, each of which operates in vastly different sectors and is a living organism of itself.
BHP’s management quality
As Rio Tinto Limited (ASX: RIO) remains on the outer due to its demolition of Juukan Gorge, management at BHP continue to stand out.
During the week, BHP announced its intention to exit its oil and gas businesses, not long after its coal exit that was announced in 2020.
Not bad timing given the oil price is now back over USD$70 per barrel and energy companies are once again flush with cash.
