Hello crypto world!
Today I would like to share with you a couple of graphs i have made to compare the performances of the main assets. I like to do this kind of research every month to try to understand where markets are going.
What i compared:
-Crude oil (OIL_CRUDE)
-Dollar index (USDOLLAR)
-Apple stock (AAPL)
-Nasdaq index (NDX)
-SP500 index (US500)
Let's start from a bit more than one year ago. I took the 9th of march 2020 as first day of my graph. That day was the one when almost any country in the world was starting to get into lockdowns and restrictions. I think we all remember markets bleeding continously starting on march 2020 with some crazy event like the crude oil price becoming negative in the middle of April 2020.
Many people started liquidating their crypto/stocks/commodities positions thinking they would continue reaching lower levels. And many of them thought only Gold could be the asset to mantain value over time.
From this chart we can see that only dollar index had a negative performance.
Gold is the only one having a one digit gain (+5.7%) and under-performing the rest of commodities like silver (+49.5%), copper (+65.7%) and crude oil (+76.1%).
Apple (+79.2%) is over-performing stock indexes like sp500 (+42.1%) and nasdaq (62.6%).
Bitcoin is for sure the winner overall with an incredible performance.(+622.3%)
Year to date
In the second chart i have compared the same assets but starting on the 4th of January 2021, the so called year to date (ytd) performance.
As we can see gold (-10.1%), silver (-6.9%) and apple (-1.1%) are having negative performances while dollar index is on (+1.4%).
Nasdaq(+7.2%) and Sp500 (+10.4%) are growing less than commodities like copper (+14.7%) or crude oil (+25.5%).
Bitcoin is again the winner overall (+78.3%).
So is impossible to over-perform Bitcoin?
Just have a look to my last graph.
This time i compared on one year performance:
I decided to compare the two most famous electric car producers, NIO (China) Tesla (USA), a tech company that had good gain from lockdown because of its core business and gamestop because of the reddit short-squeeze trade.
Now we can see that Bitcoin lost his leadership. it turned into 3rd in this new rank where
1. Gamestop +5119%
2. Nio +1260%
3. Bitcoin +670%
4. Tesla +511%
5. Zoom +174%
My point of view is that the answer to Covid19 from central banks has been a massive printing of new money. The majority of this money has flown into financial assets with the target to defend from inflation. Stocks market and commodities are growing so much even if the economies of the most of the countries in the world are still suffering so much.
There is, or at least there had been, a kind of negative correlation between gdp and stocks/commodities. A kind of betting that as bad as the economy would go as much the central banks would print.
So in my view what is really gonna lead the future of the markets is the inflation, which could get higher and higher with all this money printed.
What do you think about it? Did you invest in gamestop having this crazy performance or did you switch everything to gold?
Thanks for reading!