Grayscale Investments moves closer to launching a spot-based Bitcoin ETF after a court decision. HPE and HPQ earnings breakdown. Real estate boom in Palestinian Territories. Analysis of S&P 500 path to 4600.
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Quick takeaways
A fragile real estate boom is emerging in the Palestinian territories, with Arab Israelis purchasing luxury homes in Jericho, potentially shaping the political landscape in the future.
A recent appeals panel decision in Washington paves the way for the approval of a spot-based Bitcoin ETF in the US, which could lead to broader mainstream adoption of Bitcoin.
Hewlett Packard Enterprise's third quarter earnings revealed a mixed performance, with a rebound in the market for PCs but tempered expectations for growth in the AI space.
Deep dives
Palestinian Real Estate Boom in Jericho
A fragile real estate boom is emerging in Palestinian territories, with Arab Israelis purchasing luxury homes in Jericho. This adds a new dynamic to the complex relationship between Arab Israelis, Palestinians, and Jewish Israelis. The development known as Jericho Gate offers vacation villas with pools and aims to attract visitors from Israel and beyond. The Palestinians who can afford these homes view them as a sign of prosperity and an investment for the future. This trend also brings together Israeli Arabs and West Bank Palestinians, potentially shaping the political landscape in the future.
Spot-based Bitcoin ETF
A recent appeals panel decision in Washington is paving the way for the approval of a spot-based Bitcoin ETF in the US. This decision is seen as a significant win for the industry, although it still requires approval from the SEC. The spot Bitcoin ETF would allow investors to have exposure to Bitcoin without actually owning the cryptocurrency. Many believe this could lead to broader mainstream adoption of Bitcoin among retail and institutional investors. The approval process is still ongoing, and while there is cautious optimism, there is also uncertainty about the final outcome and the potential timeline for approval.
HPE's Quarter 3 Earnings
Hewlett Packard Enterprise (HPE) reported its third quarter earnings, revealing a mixed performance. While the Personal Systems revenue exceeded expectations, the company reduced its full-year cash flow and profit outlook. HPE is seeing a rebound in the market for PCs, but expectations for growth are tempered. The company aims to position itself in the AI space, particularly in high-performance compute, but it may take time for the AI business to become a significant revenue generator. HPE is navigating a complex market environment and faces competition from other companies in the AI and server space.
Long-term Investment Opportunities
When advising clients, wealth advisors focus on long-term accumulation strategies. Despite market volatility, reinvestment of dividends provides a significant portion of total returns over time. Given the current higher-for-longer interest rate environment, advisors suggest exploring opportunities beyond ultra-short duration fixed income. Sectors such as liquid natural gas and companies with multiple business lines that are not highly leveraged may offer potential growth. Additionally, as rates are currently higher than expected long-term growth rates, gradually increasing exposure to longer duration assets may be considered. The small-cap spectrum and fixed income assets outside of risk-free options may present potential investments.
Market Outlook and Path to December 31st
The market outlook for the remainder of the year includes the expectation of tighter trading ranges and incremental increases in volatility. Amidst potential churning within the tech sector, opportunities for investment focus on specific names within the small-cap spectrum. The persistence of inflation and margin expansion benefits large-cap companies, while the small-cap range offers potential value. Targeting investments with growth potential, considering growth rates and inflation dynamics, can help navigate the market and work toward an S&P 500 target of 4600 by year-end.
Bloomberg News Digital Currencies Reporter Hannah Miller explains how Grayscale Investments has moved closer to launching a spot-based Bitcoin exchange-traded fund in the US after a three-judge appeals panel in Washington overturned a decision by the SEC to block the ETF. Bloomberg Intelligence Senior Technology Analyst Woo Jin Ho breaks down HPE and HPQ earnings. Bloomberg Businessweek Editor Joel Weber and Bloomberg News Israel Bureau Chief Ethan Bronner share the details of Ethan's Businessweek Magazine story A Fragile Real Estate Boom Emerges in Palestinian Territories. And we Drive to the Close with Nicole Webb, SVP and Financial Advisor at Wealth Enhancement Group. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.