From around $9,700 levels a unit in May 2020, the sharp rally in bitcoin has taken investors and analysts by surprise with the crypto hitting the $63,000 mark in early April this year - translating into a phenomenal rise of nearly 550 per cent during this period. The unit was invented in 2008 and launched in 2009. Over the years, this crypto currency has become investible option for institutions and retail investors.
CLICK HERE FOR THE CHART
The spectacular surge in bitcoin has lured traders and investors alike to the cryptocurrency.
Christopher Wood, global head of equity strategy at Jefferies trimmed exposure in gold last December in favour of bitcoin in his long-only global portfolio for US dollar-denominated pension funds.
As an asset class, 29 per cent of the fund managers surveyed believe the S&P500 will outperform in 2021. Oil has now risen to the second spot with 25 per cent of the fund managers surveyed globally expecting it to outperform, up 11 per cent compared to April levels, followed by emerging markets
at 20 per cent.
ALSO READ: Roaring crypto cacophony drowns out rest of Wall Street in a wild week
“48 per cent of FMS investors think value will outperform growth in the next 12 months. It continues to be the most favoured factor in the last six months with the exception of small cap in February 2021. The three-month FMS investor optimism on commodities still near all-time highs. Commodities' net asset allocation is now 27 per cent in their portfolios, up 4 per cent month-on-month. 48 per cent of respondents expect the global economy to get 'a lot stronger', down 15ppt from last month,” BofA
Securities survey said.
Inflation is now counted as the biggest risk for markets
with 35 per cent of FMS investors agreeing to this, followed by taper tantrum (27 per cent) and asset bubble (15 per cent). “In May 2021, a mere 9 per cent cite COVID-19 as the biggest tail risk,” BofA Securities said.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.