 Hey guys, I hope you're well. Hope you had a good break over the Christmas and New Year period We're back in the office now the home office. That is So today we're gonna be talking about Bitcoin the genomic revolution Tesla Elon Musk becoming the richest man in the world and lots of other different things So first of all like this video if you enjoy it comment down below if you want to you want me to cover anything more In further detail because I'm gonna go through a few different topics today So we had some pretty pretty hectic scenes on Capitol Hill But didn't really move markets the S&P 500 and the Dow Jones Hit record highs on the back of the news All the blue wave returning so the blue wave is back on the Democratic Party, of course Biden Biden's party was is actually gonna take control of the house and Senate So what does this mean for financial markets? That's really what we care about. This is gonna be a lot Easier for Biden and the Democratic Party to advance kind of legislative Priorities when he takes office This means basically a larger probability of stimulus checks for US citizens and households and rather than the $600 stimulus check that was kind of forecasted. It's more likely to be 2000 and there's also an increased prospect of larger fiscal stimulus support Biden's basically pledged to expand the 900 billion stimulus boost agreed in Congress And this is feeding more and more expectations that the government spending is gonna push up inflation So all inflation related kind of assets and equity sectors are benefiting on the back of new This news so banks materials energy shares This is kind of a flow through what we kind of talked about in our equity sector outlook So if you haven't watched that go and check that out for this year This is kind of a follow-on from that The reflation trade is real and these kind of assets are benefiting greatly And they've been really unloved in the in the previous year where kind of tech names took The kind of focus and the flows now these kind of deep value cyclical names are actually benefiting from this Okay There's also more likelihood of an infrastructure spending package. So in the near term and In the longer term, this is more economic growth, which of course is much needed after the kind of coronavirus shock Okay, of course, we've got the feds still there in the most recent policy meeting. They pretty much You know made a commitment for this 120 billion per month asset purchase program to remain in place So they're gonna be there with their foot on the pedal So it's looking good in terms of the monetary and fiscal support heading into the year Okay, we need to obviously watch the velocity of money. Okay, and this is a big kind of proponent of Inflation Velocity of money completely stopped pretty much when we were all in lockdown and but that is really a function of the lockdown Okay, so when we are allowed out And we get the vaccines that velocity of money you'd expect to pick up and this could fuel Some more inflation kind of worries, but actually so much needed inflation Treasury yields sold off quite dramatically yields hit 1% And above and this is really the supply needed to finance this fiscal spending Banks obviously benefited from this from the steeper yield curve and this was the steeper since 2017 And the kbw bank index was up, you know up six seven eight percent At times the tech heavy now Nasdaq. I mean most indices now are pretty pretty tech heavy But the Nasdaq was red and did lag the other indices This is really a higher yield story Being factored into the kind of lofty valuations that we've we see and have seen over the last kind of couple of years Which means lower present value of cash flows So they're really the investors and the valuations were really taking into account the prospect of higher yields That who knows if we're how high those yields can go and whether the Fed will kind of step in to kind of cap that But let's see how this kind of story plays out really another kind of aspect of this was the higher corporation tax Or the threat of from the Biden administration. This is really I think unlikely until kind of 2022 2022 but It has been seen that the tech names are quite sensitive to that but more of the story is inflation expectations are taking up Banks small caps and economically cyclical kind of sectors are benefiting from this We have to talk about Bitcoin. So when Over the Christmas and New Year period Bitcoin was steadily steadily Climbing even from November. So if you've got some Bitcoin in your stocking, you're pretty pretty lucky It really exceeded 34,000 and hit 40,000 just yesterday And it's really testament to the kind of institutional flow and acceptance You get more and more corporate treasuries converting their kind of lower yielding Treasury holdings into this Bitcoin kind of element. And really this is a fight against fiat currency debasement. Okay, so The Fed are printing money Continuing to print money the more dollars in supply Really assets and kind of dollar dollar terms are becoming the base and this is kind of the threat But I think what we can see is Bitcoin is becoming more, you know, institutionally accepted You hear more and more, you know famous investors like Portia de Jones, Druckenmiller Even Skybridge Capital have just released a kind of crypto fund So lots of kind of investors are trying to get a piece of this Bitcoin action. You've even got PayPal Giving us customers the option to hold that hold Bitcoin in their digital wallets So all of this is just fueling the fire of Bitcoin Infiltrating the traditional monetary system and it's being valued not really as a currency But more of a store of value and it's actually the network and the network effects the more Kind of like Moore's law the more people that have Bitcoin and use Bitcoin the more valuable It becomes is a bit like Facebook, Amazon, etc. And all of the tech giants the more users there are The more valuable it becomes. Okay, I think the big threat Is that there's lots of big whales holding Bitcoin? So more than 2,000 wallets contain over a thousand Bitcoin So if you do a thousand times 40,000 some big big numbers there, so Very concentrated kind of in its supply and that's why we tend to see big corrections Like in 2017 for example after a big run-up if there is Some profit-taking if you want to call it that You can see the price move quite violently but I think myself and other kind of Commentators believe that these corrections are healthy and it has made kind of higher highs and higher lows Since all of these corrections even from when it was like eight dollars in 2011. So I did a LinkedIn post Just exploring about you know, if it's surging towards 40,000 it's becoming more institutional institutionally accepted You know being seen as a safe haven asset. Why did it lose half of its value in March? And really the argument and really defense of Bitcoin was that in times of crisis just like we saw in March 2020 and in 2018 sorry 2008 the global financial crisis is really a form of a liquidity crisis So investors are liquidating their positions really to scramble for dollars. Okay, so gold and surgeries They're considered safe haven assets traditionally. So why did they provide to fail? Sorry provide an adequate hedge in March when everything was selling off If you've got a margin call, you need dollars if you want to buy oil You need dollars if you want to pay your foreign dollar denominated debt, you need dollars So in March it was different because the financial plumbing was really not functioning properly and the majority of market participants and Transactors needed dollars at that time the majority of financial transactions take place in dollars This is why the Fed brought out the swap lines backstop the credit markets because markets were not functioning as they were Okay, so ever there was this dollar squeeze And gold Bitcoin treasuries all of these safe haven assets provide failed to provide an adequate hedge and actually got caught up in this but To be honest that is a dollar story and not, you know, it's anonymous to Bitcoin Other assets got caught up on that now Everyone's right running towards inflation hedges like we talked about gold Bitcoin goes up 22 percent Bitcoin's up 370 percent Over the last year and this is again a story of fiat currency debasement Okay, and then even corporate treasuries are turning to Bitcoin So Michael Saylor has been a bit big Advocate of this saying why would I hold treasuries that yield nothing and my dollars are being kind of debased at 20 15 to 20 percent a year I'm gonna put something into a hard asset He considered gold. He considered real estate, but really Bitcoin was the most attractive to him to appreciate Despite the fiat currency debasement. Who knows what's next for Bitcoin. It's definitely fun to watch I'm definitely interested. I do think a corrections probably Coming very soon, but again, that's healthy and I think as long as it doesn't completely collapse Which I don't see happening. I think, you know, people will be more and more interested in this pullback Spacks another hot topic. So I had some questions from our Amplify live room and Questions on LinkedIn and things like that. Can you run through Spax? So I'm gonna do it now 2020 year that was really the year of the Spax This is essentially a special purpose acquisition company And this is a way of private companies bypassing the traditional IPO process And this is to gain access to public markets with lightning speed It really is just a reverse merger the benefit versus IPOs is this there's an increased Probability of execution and the time to mark is kind of reduced quite dramatically So many companies in 2020 opted for Spax to really circumvent the COVID volatility rather than Embark in a very long lengthy IPO process. We saw lots of Companies going public via a SPAC and record volume around 78 billion We work actually pulled their IPO if you remember last year And this was under intense regulatory and investor scrutiny During the traditional IPO process and I believe actually if we saw we were going public through a SPAC That that would have actually gone through and you would see we were going through Inherently there's problems or potential problems with the SPAC process And this is inherent in the filing. So they file something called an S4 when you do a SPAC and this is What's that what's permitted in this is forward-looking proforma statements. So Virgin Galactic is a great example They don't make any money now, but they potentially have huge revenues in the future And this is obviously attractive if you are that type of company or even the tech names that don't make traditional profit now But can forecast forecast out into the future to monetize that say daily monthly active users These proforma statements are not generally accepted by accounting principles and they're prohibited in the S1 forms file Through an IPO process. Okay, so that's the kind of attraction with these I guess More forward-looking companies, okay to be profitable in the future That SPAC looks more and more attractive if you can talk about those forward-looking statements the another kind of Worry for investors is the incentive. So founders take a promote fee of around 20% of the company as payment And this is a kind of somewhat of a misalignment of incentives The sponsor doesn't need to find a long-term quality business Instead it may be able to go for a more speculative option that next them a really big return in the short term And this is not synonymous again across all SPACs But there are kind of those those SPACs that do exist a huge amount of trust needs to go And be given to the management But with extremely savvy investors like Bill Ackman and Shemath, you can definitely see the attraction It's almost betting on them to make good decisions. Will it be the death of the IPO? Maybe I'll cover that in a later video I also did a great post on the genomic revolution And this is something that's definitely caught my my interest and there's some serious innovation going on in this genomic space And I'm definitely not a biologist, but it's very interesting topic that I've looked into and I really enjoy kind of the potential for it So what you can see here is the kind of growth of genomic sequencing 2.6 million genomes were sequenced in 2019 105 million genomes in 2024 And the cost to sequence a human genome, which is basically the genetic code that makes up humans. It's our kind of DNA That's fallen from the kind of hundreds of millions billions into the hundreds of dollars So this is an exponential reduction in cost that is surely only likely to continue Okay, and according to ARC investment management where this research paper is from the white paper We could reach 105 genome sequence in 2024 up from 2.6 million in 2019 so why is this important the improvement in technology Computing this is going to allow us to apply artificial intelligence machine learning I know all the buzzwords and other techniques to analyze this larger data set of human genomes And this is going to provide just like Facebook Google Amazon collecting all of this user data You know, they're able to make applications for that and it provides them with huge insights So imagine what that kind of wealth of data can be What it can be useful in the kind of technology health technology space Okay, so for example using DNA sequencing and CRISPR Technology, they may be able to identify mutations in in genes that make up the genomes Edit remove them replace them and I made a joke. I'm sure it's as easy as copy and pasting But this is all in order to prevent Illnesses like sickle cell anemia cancer blindness and hopefully cure them in the future and this may be suit, you know closer than we think but maybe by 2025 2030 this may become a reality Okay, this is also going to sharpen the precision of diagnostic medicines and guide personalized medicine So these therapeutic pipelines in monetary terms could generate hundreds of billions of revenue and actually trillions of dollars in market cap In the future, so we could even see a genomic company like edit tasks like CRISPR Okay, like in tell ya actually becoming the next trillion dollar company like Apple We also need to talk about Elon Musk And Tesla so Tesla's continued to just make higher highs It's on an absolute tear and it has been up something like 800 percent, but it's actually now made Tesla owner Elon Musk the richest man in the world and he's actually surpassed Jeff Bezos of Amazon who held it since 2017 Okay, Musk As Tesla actually hit a seven hundred billion dollar market cap on Wednesday, and this is Most obviously valuable car company Toyota Volkswagen Hyundai GM and Ford combined and actually Dan Ives of Wedbush Securities kind of talked about the blue Senate so all the stuff we talked about earlier in the video being a very bullish for Tesla a potential game changer of course with the kind of Electric Vehicle tax credits that would benefit Tesla and an overall and more focus on kind of renewable energy and that electric vehicle sector As a as a whole and we even seen kind of companies like plug Do extremely well like up a thousand percent? Talking about that kind of renewable energy story. So Musk his personal wealth has been boosted By eight the eightfold surge in Tesla So he's done extremely well, of course, and it's around a hundred ninety billion And there's a quite a funny exchange on Twitter from the Tesla owners of Silicon Valley He just put her how strange well back to work, which is very synonymous of Elon Musk so I hope you enjoyed this kind of This video covering a lots of different topics if you if you heard something in the video that you want me to cover Kind of in more detail and more than happy to I hope you enjoyed the video Make sure you like and subscribe the video for more content from myself and the team. Take care