As the Friday before Thanksgiving unfolds, we are seeing cryptocurrency up and gold down! The markets are in a reflective yet volatile state. The emergence of Bitcoin options sparks intrigue and skepticism, with aggressive call-to-put ratios suggesting speculative fervor but also significant risk. Amid these market shifts, a broader discussion unfolds on the profitability of writing versus buying options, with no definitive data but a clear invitation for insights from more experienced market participants. Today we discuss...
- The Thanksgiving holiday week is historically a peculiar time for trading, with irregular schedules impacting market activity.
- The introduction of Bitcoin options has sparked curiosity, with high premiums signaling extreme market expectations but posing significant risks.
- Bitcoin's potential inclusion as a U.S. reserve asset has revived discussions, despite being a long-standing topic without concrete developments.
- Options trading serves as a tool for managing risk, with ongoing debate about whether option writers consistently outperform buyers.
- Advanced data and analysis on options market outcomes could provide valuable insights for seasoned investors.
- The Ethereum market has rebounded to a normal range but has underperformed Bitcoin.
- Bitcoin has benefited from two factors: election outcomes and speculation about its potential role as a reserve asset.
- Trump was strongly pro-Bitcoin, while Harris has shown lukewarm support, affecting market perceptions.
- Speculation on Bitcoin's role as a reserve asset has driven short-term price spikes.
- There are significant challenges to making Bitcoin a reserve asset due to its price volatility and speculative nature.
- Bitcoin's fixed supply and hoarding behavior contribute to its price volatility and limit its practicality as a currency.
- The U.S. government could use confiscated Bitcoin for reserves without impacting the market.
- Michael Saylor's leveraged Bitcoin strategy demonstrates the high-risk, high-reward nature of such plays.
- Bitcoin is increasingly seen as an asset class rather than a functional currency.
- The limited liquidity in Bitcoin due to speculative holding patterns mirrors challenges in other markets with reduced float.
- Small-cap stocks have performed well post-election, partly due to optimism about domestic economic policies.
- Small-cap indexes like the S&P 600 are stricter on profitability compared to the broader Russell 2000, impacting valuation clarity.
- Structural differences in today's IPO and investment landscape may affect the long-term potential of small caps.
"Cash is not trash... Cash is King" - Kirk Chisholm
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Today's Guest: Kirk Chisholm
Kirk Chisholm is a Wealth Manager and Principal at Innovative Advisory Group, an independent Registered Investment Advisor located in Lexington, MA. He has been providing wealth management services to individuals, executives, entrepreneurs, and their families since 1999. He is an outside the box thinker, risk manager, inflation expert, blogger, podcaster, and all-around interesting guy. Kirk is dedicated to developing lasting relationships with all of his clients and their families. One of the benefits of working with Kirk is his patience, empathy, and his ability to provide clear and easy-to-understand explanations to complex financial topics.
Kirk developed a unique philosophy for the wealth management industry called Risk Management First. The medical field has a similar way of thinking of “first do no harm”. This philosophy focuses on risk management for clients in all aspects of their lives in ways the industry does not address. Risk management does not stop with investments. It also requires working closely with other professionals to address areas of their financial lives not currently being met.
In 2008, Kirk co-founded Innovative Advisory Group to address the needs not being addressed by the wealth management industry. It started with specializing in alternative assets held in retirement accounts (i.e. self directed IRAs/401ks). Then the company expanded into the specialization of college funding (i.e. planning, strategy, and paying the least possible for a high quality education), Risk Management First, exit planning for business owners, advanced planning (estate, tax, etc), and providing practice management and leadership training to other financial advisors, accountants and attorneys.
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Today's Panelists
- Kirk Chisholm | Innovative Wealth
- Phil Weiss | Apprise Wealth Management