Hi,
In this week’s COTW, we look at the incredible appreciation in crypto assets. I asked my Twitter followers what the right level is for crypto allocation within a personal portfolio. You have to click the tweet to see the poll results (Sorry, can’t work out how to embed the poll!)

Azeem Azhar @azeem

In a reasonable savings portfolio, what is the right level of assets that should be held on crypto?

November 22nd 2020

1 Retweet1 Like

Enjoy!

Azeem

Bitcoin lifts off

The moment in 2020 when Bitcoin unmoored its correlation with US equities. Via The Daily Shot

But it remains bumpy

Bitcoin’s volatility compared with gold. At this stage, “bitcoin quickly eats up most of your risk budget.” Via Jeroen Blokland

Parody cryptocurrency gets a boost

Dogecoin, the cryptocurrency that was started as a joke and inspired by the popular meme about a Shiba Inu dog, saw a 125 percent trading increase over the week. One Dogecoin is still worth less than one US cent.

Cutting carbon over the decades

Canada and the United States have some work to do. Via Dave Jones

The rising cost of container prices

Container prices on key routes from China to the US & Europe rose 100 per cent in 2020 compared to 2019. Via Freightos Baltic Index

Freight costs rise ahead of Brexit

Not just China to the West, freight costs spiked between France and the UK spiked ahead of the end of the Brexit transition period. Via Bloomberg

Economic activity takes another hit

New variants and fresh lockdowns are spurring another pounding on the global economy. The economic effects of Covid-19 are far from over. Via Isabelnet

The origins of the US market boom

Why did stock markets boom in 2020? One possibility, a decline in opportunities to spend on hedonic and prosaic services leading to a rise in personal savings. These nearly tripled to $1.7trn dollars between 2019 and 2020. There is more cash lying around in financial assets and under metaphorical mattresses. Might these result in a sell-off for some cray-cray partying in future years? Via New York Times (This is not investment advice.)

Meanwhile … European VCs continue to raise money

2020 wasn’t such a bad year for European VC funds raising money. They are also actively deploying their capital - the number of funding rounds last year was about double five years ago. Via Dealroom

Silicon globe

There is a clear trend: venture capital is spreading outside the US. For the past five years more venture capital has been deployed outside the US. Via Ben Evans

You’re on mute

The incredible spike in users on Microsoft Teams. Via FT

The vaccine sceptics, by country

Interesting spread especially considering the enthusiasm in India. Via Gianni Giacomelli

Endnote

Comments are open to discuss aspects of these charts with members. If you would like Chart of the Week to tackle a particular topic, country, or industry, put suggestions in the comments. 

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Cheers,

Azeem