Editors' Picks Daily: A Tale From The Crypto!

by: SA Editors

Here are today’s Editors’ Picks:

Un-Happy Anniversary – Our Take On Oil Markets Ahead Of OPEC’s Meeting by James Constas

Valuing GameStop by Simeon Rusanov

Easterly Government Is On Track To Become A Blue Chip REIT by Brad Thomas

A Cyber Every-Day REIT by Brad Thomas

Mall REITs: How I Messed Up, And What I’m Doing With CBL Now by Ian Bezek

Why Pay For Financial Advice? Financial Advisors’ Daily Digest by SA Gil Weinreich

CEFL Is Worth Considering With A 17.1% Dividend Yield by Lance Brofman

Tales From The Crypto by Eric Parnell, CFA

Chart of the day: Mall REITs: How I Messed Up, And What I’m Doing With CBL Now

Comment of the day, In Response to Tales From The Crypto (Eric Parnell, CFA) by SA user RKW29:

Tulip bulbs from that day were in limited supply and valuable despite the speculative bubble at that time. They basically became currency because they were hard to grow and popular. Then the irrational exuberance took off.
The bubble did not end because the market was flooded with these bulbs because they were easy to obtain (like your squirrel analogy). It ended because the bubble ran its course and the top of the pyramid cashed in.
Every bubble has someone like you saying “This is not comparable to previous bubbles”. In other words, “This time is different”. We saw the same with .com and housing. Same people like you insisting this was not a bubble.
I mean look at the chart. If that is not a classic bubble then nobody knows what is.

Image of the day: Tales From The Crypto by Eric Parnell, CFA

Quote of the day: Eric Parnell, CFA

The price performance of cryptocurrencies has been remarkable. Someday, they may play a critical role in the investment portfolio asset allocation process. Someday, they may even go so far as to change the financial world as we know it. But someday is not necessarily today. In the meantime, cryptocurrencies are experiencing a bubble. While the story is only beginning to be told, be careful in watching how this early episode ends…

A full-scale bubble is underway in the cryptocurrency market. It is fun to watch and it undoubtedly will end badly just as all bubbles do. But looking past the harrowing story, bubbles usually happen for a reason, which is that the underlying technology is very likely real and transformative over the long run.

So look past the noise of today’s bubble inflating and tomorrow’s bubble bursting and focus more broadly on the potential current and future opportunities that are slowly developing as the underlying category continues to form and develop over time.

Thanks for reading. Please share your ‘Editor’s Pick’ with fellow investors by posting it in the comments.

Have a great day!

- SA Editor Jason Kirsch

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.