Your free daily email from Fuller Treacy Money
Comments of the Day
22 April 2021
Video commentary for April 21st 2021
Eoin Treacy's view
A link to today's video commentary is posted in the Subscriber'a Area.
Soime of the topics discussed include: short-term versus long term supply inelasticity discussed, gold and silver rebound, bitcoin weak and ethereum firm, lumber steady, commodity currencies resurgent.
Netflix Falls After Pandemic Boom Reverses to Rare Weakness
This article from Bloomberg may be of interest to subscribers. Here is a section:
Netflix has been warning for months that growth would slow after customers emerged from their Covid-19 hibernation, but few expected the company to stall so dramatically. The first quarter of 2020 was the strongest in its history, reeling in 15.8 million new customers, and Netflix’s pace was still brisk in the fourth quarter.
“We had those 10 years where we were growing smooth as silk,” Executive Chairman and co-Chief Executive Officer Reed Hastings said on a webcast for investors. “It’s a little wobbly right now.”
Netflix added 3.98 million subscribers in the first quarter, compared with an average analyst estimate of 6.29 million and its own forecast of 6 million. That marked the weakest start of a year since 2013, when Netflix added about 3 million customers. If the company’s forecast for the current quarter holds, it will be the worst three-month stretch for Netflix since the early days of its streaming service.
Netflix blamed a “Covid-19 pull-forward” effect, meaning the pandemic accelerated its growth in 2020 while everyone was stuck at home and needed something to watch. Now that surge is taking a toll on the company’s 2021 results.
“It really boils down to Covid,” Spencer Neumann, the company’s chief financial officer, said on the webcast.
Eoin Treacy's view
Veteran subscribers will be aware I am not a fan of Netflix. It pioneered streaming but its content is a triumph of quantity over quality. That latter point matters as competition increases and that is particularly true as the established content creators enter the fray.
Canadian Dollar Gains as Traders Eye CPI With BOC Taper in Focus
This article from Bloomberg may be of interest to subscribers. Here is a section:
The loonie edged slightly higher ahead of data forecast to show inflation ticked up. Investors will then turn their focus to the Bank of Canada’s policy decision in which policy makers are widely expected to announce the tapering of asset purchases.
USD/CAD +0.1% to 1.2601; fell as much as 0.2%; the loonie is stronger than most Group-of-10 peers
Scotiabank’s Shaun Osborne and Juan Manuel Herrera are watching whether policymakers opt to taper from the current CAD4bn/week to CAD3bn/week
Such a move should help support the loonie, they said, noting that they expect “the language of the policy statement and MPR to try and soften the impact” of a tapering decision
CIBC’s Bipan Rai said a convincing break of the 1.2650 level would be a possible signal of a new trading range, and recommends establishing longs there to target 1.30
Eoin Treacy's view
The 2020 trend of unanimous global monetary and fiscal support is fraying as countries move to pursuing their individual priorities and as the pace of recovery diverges. Canada’s commodity and housing markets are firing on all cylinders so it is logical that they will begin to think about how to ease back from outsized assistance earlier than other countries.
Just Like Price of ETH, Ethereum Usage Is Seeing Consistent Growth
This article from bitcoinexchange.com may be of interest to subscribers. Here is a section:
Much like the price, the network fundamentals are just as bullish, with the hash rate on the network on an uptrend ever since December 2019.
Unique addresses have also been only growing, now past 148.5 million. Daily transactions also hit a new ATH at 1.5 million this week versus 1.35 million on Jan. 4, 2018.
Average gas fees on the network continuously keep above 150 Gwei with several significant upticks along the way, which first gained momentum during DeFi summer, as per Etherscan.
While the high fees on the second-largest network continue to price out the smaller users due to high activity on the platform, it goes without saying people are still using it and paying the fees.
“You pay high fees now because it’s the most useful chain by far. The catalysts coming will be the most obvious in retrospect,” said Kyle Davies, co-founder of Three Arrows Capital.
The consistent growth in usage can further be seen in transactions settled by the Ethereum blockchain, which has reached $1.5 trillion in transactions in Q1 2021.
Eoin Treacy's view
There has been a deal of interest in the alt-coins as bitcoin’s price has increased. That’s a normal response from investors who are drawn to the promise of quick gains. They look for catch-up potential as the primary asset rises and the cost of participating increases.
Eoin's personal portfolio: futures long opened March 30th
Eoin Treacy's view
One of the most commonly asked questions by subscribers is how to find details of my open traders. To make it easier I will simply repost the latest summary daily until there is a change.
This is your daily comment from www.fullertreacymoney.com.
Subscribe to Fuller Treacy Money Limited for exclusive content and audio: Click here for details.
The information provided on this website (www.fullertreacymoney.com) is for the purposes of information only. This website and its content is not and should not be considered or deemed to be an offer of or invitation to engage in any investment activity. Nothing Fuller Treacy Money does and nothing on this website is intended to operate or be construed as the giving of advice or the making of a recommendation by Fuller Treacy Money to any investor or prospective investor. Fuller Treacy Money and any other group or associated company of it is not authorised or regulated by the Financial Conduct Authority in the UK or any other regulatory body in any other jurisdiction. By means of your login to our service you are deemed to thereby accept our current Terms of Business including this notice, Except for permission to download a single copy for personal use, the research published by Fuller Treacy Money may not be reproduced, distributed or published in whole or in part by any recipient for any purpose, without the prior express consent of Fuller Treacy Money. Information featured on the website is based upon information and data provided by Fuller Treacy Money and remains the intellectual property of Fuller Treacy Money. Some of the information may also be provided by third parties and whilst Fuller Treacy Money will seek to ensure that information featured the website is updated on a regular basis, Fuller Treacy Money does not accept any responsibility for, and disclaims any and all liability for, any such information (including the accuracy of such information) or views or opinions expressed on the website. Any person considering an investment opportunity as a result of data presented on the website should give full regard to all the content of the website, and should perform their own due diligence and obtain advice from suitably qualified professional advisers before investing. Prospective investors are also encouraged and recommended to take their own independent legal and taxation advice together with any other advice that they may consider necessary to consider the benefits and risks attached to any investment opportunity. No representation or warranty, expressed or implied, is or will be made or given by Fuller Treacy Money (including its executives, employees, agents, contractors and advisors) in relation to the accuracy or completeness of the contents of the website, save that any such liability is not excluded in respect of fraudulent misrepresentation.