[NIC] Hi guys, welcome to another episode of Traders’ Risk Call. I am Nicholas and with us today is Vee, the CIO and founder of TrackRecord. How are you, Vee?

 

[VEE] Hey Nick! Let’s talk about markets.

 

[NIC] Right? Markets are usually serene these days and a lot of investors are getting jitters because they are not accustomed to the calm, what changed?

 

[VEE] So what has changed since last year, at least a the structural change in the market, is that the change in US Administration and thus politics have become much more predictable. We don’t hear much from President Biden. In fact, one of the complaints from the Press was that he doesn’t talk to the press as often as they want him to. And that is a big change because the previous president was always on airwaves (always on Twitter) and foreign policy could change, trade policy could change such as the sanctions on China. All these random things, all these random factors make for everyday to be exciting because it’s random and you see a lot of movements, you see markets reacting and there’s a lot of volatility and randomness within the shorter term. And not just a shorter term for so the longer term is up because you quit is quite difficult to predict what is his plans exactly where else we have now reverted to a much more done or much more traditional form of governance – where the president communicates through his key advisors and his cabinet members, right and the president’s trade policy goes through the trade advisor. There’s no tweets about changes in policies. Changes in polices are more reasoned and more well thought out. So, I think that changes a lot in terms of dampening volatility. So almost since the start of the second quarter after the rotation and now people are putting capital to work, you see VIX as a measure of stock market volatility has come off and it’s consistently coming off as time passes. Even in currency markets, it’s also very quiet. And I think that’s a good thing, that bodes well for the bull market that we are going through where you know volatility is very subdued and we expect this to continue. I expect this to continue in the weeks and months ahead.

[NIC] Right, there seems to be a huge party going on in Crypto, what do you think is causing this?

 

[VEE] Cryptos – especially Bitcoin and Ethereum, are the key beneficiaries of developments in the sector, right? Yesterday, we had Coinbase’s direct listing/IPO and you know the valuation at one stage was in excess of a hundred billion dollars, right? And it’s good in that as an exchange, as more of these companies come online, they will become more mainstream. It becomes more acceptable for the average investors to consider crypto as an asset class. We have various developments as weeks pass that different banks are coming into the space, different companies are getting invested. More major companies are getting invested in some shape or form. So, I believe that’s going to continue. And so that’s one of the things that’s pushing the cryptocurrencies up as more inflows as more investment come into the space, but the other thing also is that we have the relentless printing as time passes. More Supply of fiat currency as supposed to finite assets such as Bitcoin. So, the price of Bitcoin will rise to say before we did this recently mention it in one of our webinars as well. And I think our Target of 85,000 for the year of Bitcoin is going to be achieved ahead of time ahead of schedule.

 

[NIC] Being on the right side of asymmetry is important when it comes to successful trading. What are the asymmetric opportunities that do you see in the markets now?

[VEE] As always, you know, we always talk about the TrackRecord philosophy is to always be on the right side of symmetry – meaning that we risk a finite amount/defined amount of capital to try to earn multiple times of that capital. So, you have limited losses but unlimited gains, right? So, it is asymmetric in that sense. So, we always looking for opportunities like this. Right now to reiterate, I believe the crypto space is an amazing Treasure Trove of opportunities. I think we need to devote a lot more time and resources to understanding the space, it’s a sector that is changing every day and very quickly. We will have more and more investors getting involved and we will have many of these asymmetric opportunities in this sector in the weeks months and years ahead. So, Bitcoin continues to be this opportunity for us, but I think in the weeks ahead that would be even more as the decentralized finance sector starts to get more interesting and gets to develop even more as more banks are coming to the sector. So obviously right now, crypto companies are hiring people with financial expertise. So, we really need to start to monitor this sector before and we will talk about this more in the days ahead. But for now, of course we’re still very invested in Bitcoin especially and even Ethereum and other cryptocurrencies.

 

[NIC]Alright, that’s all for this episode. Thanks, Vee.

 

[VEE] Thank you, Nick. As always stay true to your process and profitability is inevitable. Alright. Take care. Bye. Bye.