SEC Approves Bitcoin-Spot ETFs in Milestone for Digital Assets
Jan 10, 2024
auto_awesome
US regulators approve Bitcoin-spot ETFs, expanding access to digital assets. Cathy Wood and Ophelia Snyder discuss cautious institutional approach. Objectives and vision for success with Bitcoin ETF. Impact of remote work on office spaces. Collaboration, real estate properties, and transforming spaces. Outlook for emerging markets in 2024. Investing in Bajaj Auto and growth story of Indian economy.
US regulators have approved exchange-traded funds that invest in Bitcoin, signaling a milestone for the digital asset sector.
Emerging markets, particularly in India, Brazil, South Korea, and Taiwan, offer undervalued assets with growth potential and strong dividends.
Deep dives
Opportunities in Emerging Markets in 2024
Emerging markets present solid opportunities for investors in 2024, with potential for growth and income. These markets are currently under-owned and under-appreciated, offering undervalued assets compared to the US. Key areas of focus include India, Brazil, South Korea, and Taiwan, where strong companies and dividends can be found. However, selectivity and proper stock selection are crucial, as risks remain in certain emerging markets.
Contrarian Trade: China's Potential
Despite negative sentiment towards China, there are opportunities for investors with proper stock selection and understanding of Chinese policies. The country's market is undervalued and can offer trading opportunities. While caution is necessary due to uncertainties related to property policies and lack of confident market sentiment, select Chinese companies, especially in industry and finance sectors, can still generate growth and income.
Outlook for Emerging Markets Outperforming S&P 500
There is hope that emerging markets, with their current 45% discount compared to developed markets, will eventually outperform large-cap US stocks. This is driven by the expectation of a rolling over of the US dollar and the need for investors to seek returns outside of the US. While it may not solely rely on China, other countries in emerging markets may present attractive investment opportunities as investors expand their focus beyond the US.
Interesting Investment Opportunity: Bajaj Auto in India
Bajaj Auto, India's largest two-wheeler and three-wheeler producer, presents an interesting investment opportunity. With strong earnings and a multi-year growth story, it is a key player in India's expanding market. The stock offers a 3% dividend yield and can be accessed through investment funds as it does not have an ADR in the US.
Ark Invest CEO and CIO Cathie Wood discusses US regulators for the first time approving exchange-traded funds that invest directly in Bitcoin, a move heralded as a landmark event for the roughly $1.7 trillion digital-asset sector that will broaden access to the largest cryptocurrency on Wall Street and beyond. Ophelia Snyder, President at 21 Shares also joins the conversation. Michael Shvo, Founder and CEO of SHVO, talks about his efforts to revive San Francisco real estate. And we Drive to the Close with Alison Shimada, Head of the Total Emerging Markets team at Allspring Global Investment. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.