Single Best Idea with Tom Keene: Amy Wu Silverman & Katy Kaminski
Mar 13, 2024
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Discover expert insights on market conditions and investment services. Learn about Bitcoin's correlation with the equity market. Explore trend following strategies and the development of the Bloomberg terminal for finance.
Bitcoin's correlation with equity markets is declining, signaling a shift in behavior towards inflation-linked movements.
Trend following strategies in equity markets focus on monitoring trends over time, emphasizing the importance of trend analysis in investing for extended periods.
Deep dives
Bitcoin's Changing Correlation with Equities
Bitcoin's correlation with the equity market, historically positive, is now showing signs of decline, indicating a shift in behavior. The correlation used to be fairly positive three years ago, but recent trends suggest a decreasing association. This change may lead to Bitcoin behaving more in line with inflation and equity market movements. Amy Wu-Silverman from RBC discussed this evolving correlation alongside broader equity market trends and the rise of speculative activities like option day trading.
Trend Following Strategies in the Equity Market
Katherine Kaminsky from Alpha Simplex highlighted trend following strategies used in the equity market, focusing on monitoring trends over time rather than timing market highs and lows. Observing the market's resilience since October, with the S&P index up almost 25%, she expressed surprise at the market's strength. Kaminsky emphasized the importance of trend analysis in investing for extended periods, offering insights into the current bullish market sentiments and the historical evolution of trend-based analysis on platforms like Bloomberg terminal.
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Insights on Market Conditions, Investment Services, and Academic Expertise