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Hello and welcome to Insider Investing. I’m Joe Ciolli, and I’m here to guide you through the current market and investing landscape. Here’s what’s on the docket:

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How to mine doge

This photo is of Dason Thomas, a crypto miner. He is wearing a white hoodie standing front of the exterior of a building.

Dason Thomas says he began mining crypto in his garage to earn altcoins like doge and litecoin. He then converts the mined altcoins to cryptocurrencies he prefers like ether, or buys more miners. Thomas breaks down how he got started with a $700 rig, and how he’s set up now.

Read the full story here:

How to mine doge: An 18-year-old TikTok influencer shares his process for earning crypto without directly buying via a $700 rig – and explains how it works for other altcoins including litecoin


A playbook for meme stocks

Reddit WallStreetBets WSB

Morgan Stanley strategist Boris Lerner argues that investors should look at the patterns of retail traders to gain an advantage. He says heavy retail selling is a good predictor that a stock will underperform in the next month, and lays out six popular bets for day traders.

Read the full story here:

Morgan Stanley shares a meme-stock playbook that average investors can use to profit from the Reddit-driven market revolution – including 6 specific areas day traders love


Top 10 shorts ahead of earnings season

New York stock exchange trader

Stocks have been on a hot streak but a variety of factors could stoke volatility heading into the third quarter. Ahead of a hotly anticipated earnings season, the founder of TradeZero America lays out the 10 most-shorted stocks above $10, which could either continue to face pressure, or be squeezed higher by retail traders.

Read the full story here:

TradeZero’s co-founder shares the top 10 stocks above $10 traders are shorting on the online brokerage ahead of a potentially volatile earnings season – and explains why they are either primed to become meme stocks or profitable shorts


Stock pick central

Seeking experts who are willing to name names? Look no further:

Read the original article on Business Insider

Crypto looks ‘bubbly’ and physical gold is a better inflation hedge, argues research report

NYSE trader
  • Bitcoin has many hallmarks of a speculative bubble, according new research from TS Lombard.
  • The report argues that investors seeking an inflation hedge would be better off buying gold.
  • “Cryptocurrencies look bubbly, displaying many of the classic markers of a speculative mania,” the report said.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Cryptocurrencies look “bubbly” and have many of the classic markers of a speculative mania, according to a research report from TS Lombard.

The research firm spelled out clear parallels with previous financial bubbles and cryptocurrencies, “especially Tulipmania,” according to the report.

TS Lombard pointed out that the surge in tulip prices in 1636 happened amid a pandemic, just like the recent surge in crypto happened amid the COVID-19 pandemic as “bored bros” put their stimulus checks into the speculative asset class.

During the tulip bubble, “many tulip traders had excess cash, inheriting it from relatives who had died in the Plague,” according to the report. But the speculative price surges could reverse as that extra spending money dwindles and the pandemic subsides.

“If a big part of the price run-up is speculative, it could reverse as policy support fades and people return to their offices,” the report explained.

Many current investors in cryptocurrencies like bitcoin believe it will serve as a hedge against rising inflation, but the report concludes that there is no evidence that will play out, as cryptocurrencies have been positively correlated with equities.

“In terms of their diversification properties, it is not clear cryptocurrencies will provide the ‘insurance’ characteristics investors are looking for,” the report explained. Bitcoin prices plunged 32% last March amid the onset of the pandemic, almost exactly the same drawdown of the S&P 500.

And in the past week, both bitcoin and ether fell more than 30% in a single day as a cryptocurrency meltdown spread throughout the sector.

Read more: 7 crypto heavyweights told us what’s behind the sudden sell-off that erased over $400 billion from the market in just 24 hours – and whether now is the time to ‘buy the dip’

For an inflation hedge that has proven its worth during an extended period of rising prices, TS Lombard points investors to gold, which did well during a period of high inflation in the 1970s.

“To the extent investors are worried about medium-term inflation risks, they should probably hedge this threat using traditional securities such as gold and various subsectors of the equity market, rather than punt around in volatile crypto assets,” the report said.

But cryptocurrencies are not going away, especially as institutions get more involved in the space, and some aspects of the DeFi capabilities are “intriguing,” according to TS Lombard. The firm points investors to ethereum, as it could “provide the infrastructure for an entirely new global financial infrastructure and has many potential applications in the finance industry beyond the token’s use as a ‘safe asset,” the report said.

“In buying ether, institutional investors are arguably buying a ‘ticket’ to access the programmable technology that underpins it,” TS Lombard concluded.

Read the original article on Business Insider