Are we set to repeat 2000 or 2008 is an important markets question? Equity indices sold off at both of those points, but for distinctly different reason. The Dispatch sees a higher probability that we are facing a set up like the year 2000, where a subset of stocks became overvalued. The unwind of the […]
energy transition
The Price of Passive ETFs
This week, we’ve started to see the price of passive ETF investing. A rising number of ETFs have funneling money into the same large cap tech stocks leading to elevated valuations. These flows are now reversing and we are discovering the inherent problem of ETFs aiming to trade near the market close. ETFs promise to […]
Fed follows Biden on Inflation
The Fed follows Biden on inflation with Chair Jay Powell articulating a faster taper this week. There has not been any new material inflation data since the Fed announced gradual taper plans, but the Biden administration has pivoted to an inflation focus. However, with rising inflation, high valuations and policy rates near zero, we are […]
Bitcoin hashrate migrates to the US
Bitcoin hashrate migrates to the US with the share having doubled since April 2021 and reaching the #1 position globally. US share of bitcoin hashrate reached 34.5% in September, according to University of Cambridge because of China’s crypto mining ban. This geographic migration is important because US-based miners use far more renewable power than Chinese […]
Energy Policy and Future Supply Crunch
This week’s focus is energy policy and how it contributes to energy supply crunch. Simply put, we are attempting the clean energy transition by vilifying traditional sources of energy. This is leading to underinvestment that is likely to cause sustained higher prices to consumers. Despite The Dispatch wanting a cleaner, lower carbon future, it has […]