[Charts] The Great Economic and Crypto Awakening

Dear Wall Street Daily Reader,

Today we have this past Friday’s issue for the Trend Trader Daily Nation!

That means the longwinded analysis is out. And some carefully selected charts are in.

I’ll shut up now and get to the pretty (and telling) pictures.

Bitcoin Behavior

This week, the Old School (Wall Street) collided with the New School (Bitcoin), as the largest cryptocurrency exchange, Coinbase Global, Inc. (COIN), officially debuted as a public company.

Rather than opine on the merits of the expensive exchange operator, here’s a crypto observation I find most telling…

A true investor class is rapidly emerging from the speculator masses.

As you can see below, at the start of the last decade, virtually no one held bitcoin for more than six months, let alone five years.

Bitcoin Growth

Now? Over 20% of investors have held onto the digital currency for five years or more, and almost 60% have held it for over a year.

While I remain convinced that the market for Bitcoin is frothy (this is an “asset” that represents a limited supply of nothing, yet has some value — head scratcher, I know), one thing’s for sure: bitcoin’s not going away any time soon.

Start Your (Economic) Engines

And here are two more things to keep in mind this week: stocks love jobs, and consumers love stimulus checks.

On the heels of a dramatic drop in initial jobless claims, U.S. stocks jumped to record highs.

Jobless Claims

More specifically, initial claims decreased a staggering 193,000 to 576,000.

Economists expected claims to come in at 700,000. (Swing and a miss!)

More people back to work means more wages being earned (and spent). And make no mistake, Americans love to spend. Their own money, and other peoples’ money.

Look no further than retail sales.

monthly retail sales

Believe it or not, total retail sales are now above their pre-Covid peak.

Thanks to record stimulus, the rate of return has never been faster, either.

It only took five months to hit new highs versus 40 months during the last major economic slowdown.

Giddy up!

The investment takeaway:

Forget about any Johnson & Johnson (JNJ) vaccination slowdown fears getting in the way of the global economic opening. It’s happening!

And it’s time to start positioning our portfolios accordingly.

I’m wrapping up research on my top reopening trade for 2021. So stay tuned!

Ahead of the tape,

Lou Basenese

Lou Basenese
Editor and Founder, Trend Trader Daily

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Louis Basenese

Louis Basenese is a professional investor, and one of the country’s leading technology analysts.

He’s spent the past 20 years analyzing emerging technologies, and developing a proven methodology to consistently profit from them.

Lou began his investment career at Morgan Stanley, where he was eventually tasked with directing over $1.5 billion in capital.

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