{"id":22771,"date":"2020-11-30T06:47:55","date_gmt":"2020-11-30T11:47:55","guid":{"rendered":"https:\/\/capital10x.com\/old\/?p=22771"},"modified":"2020-12-04T12:00:48","modified_gmt":"2020-12-04T17:00:48","slug":"navigator-ev-green-metals-psychedelics","status":"publish","type":"post","link":"https:\/\/capital10x.com\/old\/navigator-ev-green-metals-psychedelics\/","title":{"rendered":"Markets & Metals Navigator: EV Boom, Green Metals & Psychedelics"},"content":{"rendered":"

Global Stock Market on Path Towards $100 Trillion<\/h2>\n

The total market cap of all global stocks is breaking through all time highs on the pathway to the $100 trillion mark. The exuberance is driven by solid vaccine trial data and the world awash with liquidity from central banks.<\/p>\n

The recent push has been led by emerging markets, the iShares MSCI ETF (NYSE:IEMG) was up 2.8% last week and is now up 11.8% year-to-date.<\/p>\n

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The graph below is perhaps one of the best at explaining the explosion higher in the stock market and why there could be much more upside on the table; it compares the growth in money supply y\/y over nominal GDP y\/y growth\u00a0 vs. the change in the S&P 500 PE ratio y\/y.<\/p>\n

We are currently sitting at an extreme level of ‘excess liquidity’ vs. any other point in time.<\/p>\n

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Store of Value Assets Sell Off Last Week, Bitcoin Rebounds Hard and Hits an All Time High<\/h2>\n

Last week we clearly saw the market rotate out of ‘safety’ and firmly into ‘growth’; Bitcoin, gold and silver fell -6%, -4% and -5% respectively.<\/p>\n

However since the weekend Bitcoin has had a strong rally off its lows and is up over $19,540 – an all time high.\u00a0 The Bitcoin market got a positive news jolt on Sunday morning when Guggenheim Partners announced that it was reserving the right for its $5.3 billion Macro Opportunities Fund<\/a> to invest up to 10% of its net asset value in the Grayscale Bitcoin Trust (NYSE:GBTC).<\/p>\n

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Gold and silver continue to go unloved relative to their digital peer Bitcoin, we fundamentally believe this is a mismatch and that all three assets should directionally move in the same direction.<\/p>\n

There are three key reasons all store of value assets should be well bid structurally:<\/p>\n

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  1. With bond yields heading to zero globally the opportunity cost of holding gold, silver and bitcoin is negligible.<\/li>\n<\/ol>\n

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    2. Gold has a high correlation to real yields, there is significant divergence between gold and real yields – we don’t believe that is a sustainable disconnect.<\/p>\n

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    3. The total assets of the Federal Reserve continue to balloon, this is bullish for all store of value assets.<\/p>\n

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    Green Metals are the Value Play on the EV Boom<\/h2>\n