“This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro”
Key Highlights for the day
- Investing Lessons from Late Jack Bogle
- Crypto markets remain in a stable zone over the week
- Bitcoin remains apathetic rest of the financial markets
Rest in peace Jack Bogle
Well, the investing community has lost a shining star. No obituary could ever cover the stature and achievements that Jack Bogle who was the founder of one of the largest asset management firms in the world, Vanguard. Back in the 70s when the financial markets were an even more closed nit racket than they are today, Bogle introduced the first index funds as a tool for individual investors to reduce risk and fees. At that time the idea laughed off as ludicrous but it soon became the industry standard saving average joes billions, probably trillions of dollars over the last half-century. Even though his views were not very friendly for Bitcoin, his style of investing and wisdom has left a good amount of lessons for crypto investors. He was one of those who would’ve appreciated the HODL ethos.
Bogle firmly believed that stock picking and day trading was a terrible long-term strategy. So, he advocated strongly that people should ignore short-term movements of the markets and simply stay the course of their investments. This is exactly the strategy crypto investors of today need to develop.
Cryptos remain stable despite volatility across other financial markets
Despite the apparent volatility in the stock markets and general air of uncertainty depicted above, the crypto markets remain steady as a rock. Its already the second half of the week and many crypto assets have moved less than 3% since the start of the week. In fact, the crypto markets so far this year have become increasingly apathetic to what’s happening in the rest of the financial markets. This graph shows that the short-term correlations between bitcoin and gold, the US Dollar, and the stock markets have all moved to near zero.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.