​ Cryptos have staged an outsized rally following a "crypto winter" that began with a large decline in 2021. We have seen this pattern before following large drawdowns in 2013 and 2018. On the basis of this limited sample size, CryptoWorld has developed a narrative exemplified by the mantra "prices (always) to up." Thus, the present rally is yet another example of a crypto rally based on a false narrative and, according the narrative, this rally should take Bitcoin above the previous high of $57,000. However, as I discuss in detail in my book, "CryptoWorld Narratives: Eight False Narrative t ..read more

​Liquid alternative investments were introduced with great fanfare after the Credit Crisis of 2008. The pitch for the mutual funds and ETFs that used hedge fund strategies emphasized their advantage as substitutes for bonds in investment portfolios. These funds have proliferated in the intervening years and the pitch has not changed materially. Laurence Siegel presents a comprehensive analysis of liquid alternative investments from the standpoint of performance, risk, and portfolio diversification. His findings are that these investments do not live up to their hype. For the most part, their p ..read more

"Much of that investment (in technology start-ups) poured in last year, as the valuations of private start-ups were hitting a peak. Hedge funds, private equity firms, sovereign wealth funds, corporate VCs, and mutual funds between them supplied two-thirds of all the money that went into venture investing globally last year, according to data  provider PitchBook." While most of the literature on behavioral finance has focused on individual decisions, it appears that the most sophisticated investors are also prone to the biases and emotions that distort the decisions of the less-knowledgeab ..read more

​Liquid alternative investments were introduced with great fanfare after the Credit Crisis of 2008. The pitch for the mutual funds and ETFs that used hedge fund strategies emphasized their advantage as substitutes for bonds in investment portfolios. These funds have proliferated in the intervening years and the pitch has not changed materially. Laurence Siegel presents a comprehensive analysis of liquid alternative investments from the standpoint of performance, risk, and portfolio diversification. His findings are that these investments do not live up to their hype. For the most part, their p ..read more

​ncome, young males are the most likely to invest in cryptocurrencies. They tend to exhibit "herd-like behavior," investing when prices rise and losing money when they decline; typical behavior during financial bubbles. These latecomers are also the least knowledgeable and least able to withstand losses. These investors also follow a "hail Mary" strategy similar to investing in lotteries, making a low probability, high reward bet. Another reason given by crypto investors is the poor outlook for attractive returns on stocks and bonds. #investing #money #cryptocurrencies #ezrazask #investing #fi ..read more

https://www.ft.com/content/6395df7e-1bab-4ea1-a7ea-afaa71354fa0 ​ The valuations of VC-backed tech companies depend more on the supply of VC capital than on changes in the economics of the companies. The downturn in VC capital has caused a large drop in tech company valuations; as much as 80% for some ..read more

One of the clearest cases of the need to regulate cryptocurrencies. The manipulation of markets described in the article is reminiscent of the stock market before regulations were put in place to prohibit these practices. https://www.nytimes.com/2023/02/15/technology/ftx-modulo-capital.html?login=smartlock&auth=login-smartlock #cryptocurrencies #digitigalassets #FTX #ezrazask #investments #financialfraud #marketmanipution ..read more

​https://www.ft.com/content/6e912f25-f1b7-4b19-b370-007fbc867246 This close-up look at the breakup of FTX shows so many red flags that we have to ask how Sam Bankman-Fried was able to hoodwink the investment world for so long, especially since many of the red flags were also present in the Madoff Ponzi scheme.  It does seem like investors have to re-learn the lessons of previous fiascos every generation ..read more

The U.K.'s intent to introduce a digital pound in the coming years is notable for its commitment to giving access to banks, credit cards, and payment systems such as PayPal access to the digital payment system, thus allowing them to compete with the digital pound. The U.K.'s move is a defensive attempt to forestall competition by cryptocurrencies and similar techniques. All major countries face the same threats and are examining the introduction of digital currencies. Paradoxically, cryptocurrencies may yet have a significant impact on the world's payment system, not as a substitute for existi ..read more

This reads like a novel, except the characters are kids. https://www.ft.com/content/6e912f25-f1b7-4b19-b370-007fbc867246 ..read more