Bitcoin’s 2021 Returns Destroy Everything on Wall Street, Goldman Sachs Says

Discussion in 'Crypto Assets' started by johnarb, Mar 9, 2021.

  1. johnarb

    johnarb

    https://finance.yahoo.com/news/bitcoin-2021-returns-destroy-everything-223544895.html

    Bitcoin’s 2021 Returns Destroy Everything on Wall Street, Goldman Sachs Says
    Damanick Dantes
    Mon, March 8, 2021, 2:35 PM·2 min read


    [​IMG]

    Goldman Sachs, the storied Wall Street firm, didn’t start including bitcoin in its weekly ranking of global asset-class returns until late January, when the largest cryptocurrency quietly appeared atop the chart.

    But since then, bitcoin‘s lead over assets from stocks to bonds, oil, banks, gold and tech stocks and the euro has widened.

    As of March 4, bitcoin’s year-to-date return, at about 70%, was roughly double that for the next-closest competitor, the energy sector, at about 35%, according to Goldman Sachs’s latest “US Weekly Kickstart” report.

    The comparisons could become even more flattering to bitcoin now that a recent bout of selling in U.S. stocks has taken the Standard & Poor’s 500 Index’s year-to-date return to roughly zero – flat on the year.
    • The recovery in oil prices and real yields has boosted year-to-date returns for cyclical sectors such as energy and financials, which are nevertheless underperforming bitcoin.

    • Crude oil and energy have a higher risk-adjusted return (Sharpe ratio) than bitcoin so far this year.

    • Gold is the worst performing asset class year-to-date, as rising yields have punished traditionally defensive sectors such as consumer staples and utilities.

    • Based on prior CoinDesk reporting, bitcoin is viewed by many investors both in crypto and traditional markets as a potential inflation hedge, especially in an era where central banks around the world are pumping trillions of dollars of freshly created money into financial markets to stimulate coronavirus-racked economies. Even so, gold has lost about 10% on the year, prompting some market observers to argue that bitcoin is stealing market share from the yellow metal.

    • According to a survey, some 40% of Goldman clients have exposure to cryptocurrencies.

    • That’s the case even though, as recently as May 2020, Goldman’s money-management division argued in a presentation that cryptocurrencies were “not a suitable investments for our clients,” merely a beneficiary of a “mania” worse than the infamous run on Dutch tulips in the 1600s.
     
    Sprout, Trader Curt and Grantx like this.
  2. Pekelo

    Pekelo

    You misspelled Gamestop.
     
  3. Millionaire

    Millionaire

    Exactly GME is up 1200% YTD and rising.

    Bitcoin is lame in comparison.
     
    trader99 and Scataphagos like this.
  4. And Goldman being the one who declares this...the Feds main Wall street arm
     
    johnarb likes this.
  5. virtusa

    virtusa

    In 2017 the S&P went up 24% and the bitcoin went down 85%. That year Wallstreet destroyed the crypto's.

    You cannot compare crypto's with a stockmarket. Volatility in crypto's is much bigger resulting in much bigger losses and much bigger profits. Crypto's are also much more manipulated.

    If a stock crashes to zero, there are always still some assets that can be sold.
    If a crypto crashes to zero there is only thin air left. And there is plenty of air everywhere so value is zero.
     
  6. ElCubano

    ElCubano

    If a stock or Crypto go to zero you lose the same amount of money...All of it.
     
    Sprout and johnarb like this.
  7. johnarb

    johnarb

    Some key words from the article [​IMG]

    Bitcoin’s 2021 Returns Destroy Everything on Wall Street, Goldman Sachs Says

    Goldman Sachs, the storied Wall Street firm, didn’t start including bitcoin in its weekly ranking of global asset-class returns until late January, when the largest cryptocurrency quietly appeared atop the chart.
     
  8. AbbotAle

    AbbotAle

    johnarb likes this.
  9. Pekelo

    Pekelo

    BTC up 5%, nice.

    GME up 15%, NICER.
     
    johnarb likes this.
  10. johnarb

    johnarb

    Hope you're making a killing on GME, Pekelo!

    What do you think if GME does something to get involved with cryptos as Cramer had suggested?

    Gamestop could issue securities or issue debt ($1 Billion dollars, hahahahah) use all cash reserves to buy bitcoin ala MSTR

    Gamestop could transition the business to a crypto mining platform

    Gamestop can even be an NFT marketplace or some kind of blockhain gaming cloud service, check out Enjin $ENJ or Chiliz CHZ cryptos!

    Would be a pretty sweet deal
     
    #10     Mar 9, 2021