{"id":22224,"date":"2020-09-20T21:38:05","date_gmt":"2020-09-21T01:38:05","guid":{"rendered":"https:\/\/capital10x.com\/old\/?p=22224"},"modified":"2020-11-26T09:42:59","modified_gmt":"2020-11-26T14:42:59","slug":"markets-and-metals-navigator-september-20-2020","status":"publish","type":"post","link":"https:\/\/capital10x.com\/old\/markets-and-metals-navigator-september-20-2020\/","title":{"rendered":"Markets and Metals Navigator (September 20, 2020)"},"content":{"rendered":"<h2>Third Straight Red Week for US Equities, Bitcoin Gets Bid<\/h2>\n<p>US equities have struggled to regain their groove since the market top on September 2nd, the Nasdaq is off -11% since the peak, it&#8217;s worse pullback since the COVID-19 sell off in March. Last week Nasdaq fell -3% and the S&amp;P 500 was down -1%.<\/p>\n<p>Bitcoin had one of its best weeks since the selloff, up 6% on the week to $11,083.\u00a0 Investors likely saw a value opportunity in BTC vs. gold and silver, all three representing inflation hedges versus central bank money printing.<\/p>\n<p>The resiliency of gold and silver during the market volatility in September has been very supportive of the fundamental view that institutional investors have kept a strong &#8220;inflation protection&#8221; bid behind the metals.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22225\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/SPY_NDAQ_GLD_SLV_IBTCUSD_chart.png\" alt=\"\" width=\"2000\" height=\"1389\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/SPY_NDAQ_GLD_SLV_IBTCUSD_chart.png 1474w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/SPY_NDAQ_GLD_SLV_IBTCUSD_chart-300x208.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/SPY_NDAQ_GLD_SLV_IBTCUSD_chart-1024x711.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/SPY_NDAQ_GLD_SLV_IBTCUSD_chart-768x533.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/SPY_NDAQ_GLD_SLV_IBTCUSD_chart-1536x1067.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/SPY_NDAQ_GLD_SLV_IBTCUSD_chart-218x150.png 218w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/SPY_NDAQ_GLD_SLV_IBTCUSD_chart-696x483.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/SPY_NDAQ_GLD_SLV_IBTCUSD_chart-1392x967.png 1392w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/SPY_NDAQ_GLD_SLV_IBTCUSD_chart-100x70.png 100w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/SPY_NDAQ_GLD_SLV_IBTCUSD_chart-200x140.png 200w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<h2>The Tech IPO Frenzy<\/h2>\n<p>Last week we saw the biggest week for tech IPOs in 2020, with Snowflake (NASD:SNOW), JFrog (NASD:FROG), Sumo Logic (NASD:SUMO) and Unity (NASD:U) all coming to market.<\/p>\n<p>While the broader Nasdaq struggled this month, investor demand for high growth tech companies remains strong in a world of low rates and limited growth, each IPO had strong 1st day pops: Snowflake +112%, JFrog +47%, Sumo Logic +22% and Unity +31%.<\/p>\n<p>The following YTD chart compares the performance cloud computing companies (NASD:CLOU) vs. the Nasdaq and the S&amp;P 500; the bet in 2020 has clearly been for those companies that will thrive in a digital workplace.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22228\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/CLOU_^NDX_^SPX_chart.png\" alt=\"\" width=\"2000\" height=\"1309\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/CLOU_^NDX_^SPX_chart.png 1565w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/CLOU_^NDX_^SPX_chart-300x196.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/CLOU_^NDX_^SPX_chart-1024x670.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/CLOU_^NDX_^SPX_chart-768x503.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/CLOU_^NDX_^SPX_chart-1536x1005.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/CLOU_^NDX_^SPX_chart-696x456.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/CLOU_^NDX_^SPX_chart-1392x911.png 1392w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<p>The transition to a digital economy also helps explain why 84% of assets on the balance sheets of companies in the S&amp;P 500 are intangible.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22230\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/tangible-balance-sheet.jpg\" alt=\"\" width=\"1120\" height=\"1012\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/tangible-balance-sheet.jpg 1120w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/tangible-balance-sheet-300x271.jpg 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/tangible-balance-sheet-1024x925.jpg 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/tangible-balance-sheet-768x694.jpg 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/tangible-balance-sheet-696x629.jpg 696w\" sizes=\"auto, (max-width: 1120px) 100vw, 1120px\" \/><\/p>\n<h2>The Era of Competitive Paper Money Devaluation<\/h2>\n<p>The combined balance sheet of US Federal Reserve, Bank of Japan and European Central Bank have hit a record $21.3 trillion, implying that paper money continues to be devalued.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22229\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/G3-Central-Bank-Balance-Sheets.png\" alt=\"\" width=\"1950\" height=\"1446\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/G3-Central-Bank-Balance-Sheets.png 1400w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/G3-Central-Bank-Balance-Sheets-300x222.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/G3-Central-Bank-Balance-Sheets-1024x759.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/G3-Central-Bank-Balance-Sheets-768x570.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/G3-Central-Bank-Balance-Sheets-1536x1139.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/G3-Central-Bank-Balance-Sheets-696x516.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/G3-Central-Bank-Balance-Sheets-1392x1032.png 1392w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/G3-Central-Bank-Balance-Sheets-80x60.png 80w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/G3-Central-Bank-Balance-Sheets-160x120.png 160w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/G3-Central-Bank-Balance-Sheets-265x198.png 265w\" sizes=\"auto, (max-width: 1950px) 100vw, 1950px\" \/><\/p>\n<p>We recommend Capital 10X subscribers have a read of this very engaging interview with <a href=\"https:\/\/www.marketwatch.com\/story\/billionaire-investor-ray-dalio-on-capitalisms-crisis-the-world-is-going-to-change-in-shocking-ways-in-the-next-five-years-2020-09-17\">Ray Dalio in MarketWatch<\/a>, where he outlines how the world will change in the next five years.<\/p>\n<blockquote><p><span style=\"font-size: 12pt;\">&#8220;If you look at the history \u2014 for example, the Dutch Empire, the British Empire \u2014 both experienced the creation of debt and the printing of money, less educational advantages, greater internal wealth conflict, greater challenges from rival countries&#8230;..<\/span><\/p>\n<p><span style=\"font-size: 12pt;\"> The U.S. has a lot of debt, which is adding to the hurdles that typically drag an economy down, so in order to succeed, you have to do a pretty big debt restructuring. History shows what kind of a challenge that is.&#8221;<\/span><\/p><\/blockquote>\n<p>We&#8217;re seeing signs of inflation everywhere despite not showing up in headline US CPI, the Wall Street Journal ran an article last week about the robust rare plant market and Yahoo highlighted the booming baseball card market.<\/p>\n<p>In 2020 Capital 10X has been pounding the table for investors to own tangible hard assets that will protect vs. inflation; namely gold, silver and copper.<\/p>\n<h2>US Cannabis Bellwether Trulieve Expands &amp; the Most Anticipated Psychedelic IPO Comes to Market<\/h2>\n<h3>Trulieve<\/h3>\n<p><a href=\"https:\/\/capital10x.com\/old\/trulieve-raises-capital-and-enters-pennsylvania-cannabis-market\/\">Trulieve (CNSX: TRUL) announced on September 16th<\/a> after market that they are entering the Pennsylvania cannabis market by acquiring both growing and retail assets, in conjunction with a capital raise of $100.5 million (at $24.50\/share).<\/p>\n<p>Trulieve is arguably the best cannabis operator in the US, delivering the best returns on equity (ROE) in the industry (see graph below vs. US peers). Expansion in the east coast is very much on strategy and the Pennsylvania medical market is a great fit.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22219\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/TRUL.CX_CURA.CX_GTII.CX_CL.CX_chart.png\" alt=\"\" width=\"1755\" height=\"1024\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/TRUL.CX_CURA.CX_GTII.CX_CL.CX_chart.png 1755w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/TRUL.CX_CURA.CX_GTII.CX_CL.CX_chart-300x175.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/TRUL.CX_CURA.CX_GTII.CX_CL.CX_chart-1024x598.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/TRUL.CX_CURA.CX_GTII.CX_CL.CX_chart-768x448.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/TRUL.CX_CURA.CX_GTII.CX_CL.CX_chart-1536x896.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/TRUL.CX_CURA.CX_GTII.CX_CL.CX_chart-696x406.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/TRUL.CX_CURA.CX_GTII.CX_CL.CX_chart-1392x812.png 1392w\" sizes=\"auto, (max-width: 1755px) 100vw, 1755px\" \/><\/p>\n<p>Investors are getting a business that returns significantly above average equity returns for a valuation multiple that is in-line with peers (that have negative ROEs), Trulieve trades at 3.4x 2021 sales.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22220\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/TRUL.CX_CURA.CX_GTII.CX_CL.CX_chart-1.png\" alt=\"\" width=\"1755\" height=\"1024\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/TRUL.CX_CURA.CX_GTII.CX_CL.CX_chart-1.png 1755w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/TRUL.CX_CURA.CX_GTII.CX_CL.CX_chart-1-300x175.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/TRUL.CX_CURA.CX_GTII.CX_CL.CX_chart-1-1024x598.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/TRUL.CX_CURA.CX_GTII.CX_CL.CX_chart-1-768x448.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/TRUL.CX_CURA.CX_GTII.CX_CL.CX_chart-1-1536x896.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/TRUL.CX_CURA.CX_GTII.CX_CL.CX_chart-1-696x406.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/TRUL.CX_CURA.CX_GTII.CX_CL.CX_chart-1-1392x812.png 1392w\" sizes=\"auto, (max-width: 1755px) 100vw, 1755px\" \/><\/p>\n<h3>Psychedelics: Compass Pathways<\/h3>\n<p>Capital 10X has viewed the majority of the micro-cap companies in the emerging psychedelic sector as premature concepts with poorly structured capitalization tables (too many cheap shares outstanding).<\/p>\n<p>The IPO of Compass Pathways (NASD:CMPS) has brought a legitimate psychedelic entrant to the public markets.\u00a0 The shares surged 71% on it&#8217;s IPO day (Friday) taking the market cap to $1 billion.<\/p>\n<p>The company was founded in 2015, they have conducted FDA phase 1 and are currently in phase 2B studies using psilocybin capsule extracts in combination with psychotherapy to treat major depression disorders \u2013 specifically treatment resistant depression.<\/p>\n<p>The estimated addressable market for treatment resistant depression is $1bn to $1.5bn.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A weekly review of the most important news impacting the metals and global stock markets. This week: Bitcoin rallies, central bank money printing, tech IPO frenzy, Trulieve expands and Compass Pathways psychedelic IPO.<\/p>\n","protected":false},"author":7,"featured_media":17089,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1755,59],"tags":[1694,1693,76,1705,104,1689,1701,848,1706,1702,1708,1703,253,252,1707,1704],"class_list":{"0":"post-22224","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-growth_navigator","8":"category-metals","9":"tag-cmps","10":"tag-compass-pathways","11":"tag-copper","12":"tag-frog","13":"tag-gold","14":"tag-inflation","15":"tag-jfrog","16":"tag-silver","17":"tag-snow","18":"tag-snowflake","19":"tag-sumo","20":"tag-sumo-logic","21":"tag-trul","22":"tag-trulieve","23":"tag-u","24":"tag-unity"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Markets and Metals Navigator (September 20, 2020) | Capital 10X<\/title>\n<meta name=\"description\" content=\"A weekly review of the most important news impacting the metals and global stock markets. 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