A Cryptocurrency Primer In recent years, a hot -- and at times controversial -- topic in the financial community has been cryptocurrency supported by blockchain technology. Cryptocurrencies first emerged in 2009 as a new technology, and offer some potential advantages to traditional currencies while creating new trading opportunities. Still, there are major risks as well. Blockchain and Mining Cryptocurrencies are supported by a technology known as blockchain, which is a tamper-resistant leger of transactions that outlines the ever-changing ownership of the underlying currency. Cryptocurrency is able to eliminate the middlemen in transactions through the blockchain as it records each transaction and stores the information in blocks. Blockchain technology is what has made cryptocurrency viable as it prevents individuals from making copies of their holdings and using them for multiple transactions, an issue that has prevented previous attempts at creating a digital currency. Many cryptocurrencies, such as Bitcoin, are created through a complex and energy-intensive process known as 'mining.' Mining involves a process of validating and updating transactions to the digital ledger, or blockchain. Crypto mining prevents the double use of coins as it is both remarkably expensive and inefficient to submit false transactions to the ledger, while being remarkably easy for other parties to verify the correct transactions. The crypto miners reward for correctly solving the complex algorithms required to upload transactions are new coins that get generated after solving the algorithm. Given this process, a malicious actor would need to control more than 50% of the entire mining network in order to record false transactions successfully, while overcoming extremely high physical hardware and energy demands. There are over 2 million cryptocurrencies in circulation, ranging from micro-cap to mega-cap, with some rising to valuations worth hundreds of billions of dollars. Crypto Pros Crypto offers several advantages as an alternative investment, which gives it certain unique benefits that traditional currencies do not offer. Inflation protection is one such advantage for many cryptocurrencies, with Bitcoin (as an example) having a hard cap of only 21 million coins that will ever reach circulation. With nearly 19.8 million coins currently in circulation, Bitcoin is programmed to halve the pace of its mining rewards every four years, making it a more-attractive investment in times of high inflation. The price of Bitcoin historically has risen following each halving cycle, this as prices must keep up with the high energy costs required to maintain the ledger and in order for it to remain worthwhile for miners (as the rewards become increasingly smaller). Crypto transaction speeds also offer an advantage over traditional currencies. Indeed, transferring a cryptocurrency can be accomplished within minutes rather than the several days needed by most U.S. financial institutions to process a transaction. As well, given the elimination of third-party vendors to validate transactions, transactions costs can be significantly lower than is the case with traditional methods of sending currencies, particularly when transferred overseas or as a large value transfer. Volatility has become associated with crypto given the swings in the price of Bitcoin, Ethereum, and other cryptocurrencies, with prices often rising and falling more than 50% over the span of just a few months. While this volatility has made crypto a popular short-term trading asset for traders looking to make significant gains amid the large swings in pricing, other investors have held firm, utilizing what has become known as a 'HODL' mentality as they 'Hold On for Dear Life.' Crypto Cons Despite the potential upside of investing in cryptocurrencies, there are also serious risks. User risk is one of the major issues seen with crypto, as entire balances can become lost if an investor losses a password or pass phrase associated with an account. This issue has reached such a high level that some early investors have been known to purchase waste dumps where they knew hard drives containing valuable holdings had been erroneously discarded. It is estimated that one-fifth of all Bitcoins are permanently lost due to the loss of passwords. As well, there is no way to rescind a transaction after it has been recorded. The manipulation of crypto markets also remains a large risk with cryptocurrencies, as there have been several instances of unethical practices. This is a particular issue as regulation remains a looming question in the crypto community, with plenty of grey areas surrounding crypto legislation in the U.S. and sudden shifts in regulation that dramatically impacted the way that crypto is bought and sold. Given the limited regulation, some large account holders, known as whales, have engaged in pump-and-dump schemes that have artificially caused the price of certain cryptocurrencies to skyrocket or plunge. Liquidity can also be an issue in crypto, especially with lesser-known coins that hold limited demand. While liquidity has improved over the past few years across the crypto market, particularly for the largest coins such as Bitcoin and Ethereum, it remains an important factor to be considered. The Future for Crypto Looking at crypto as a currency alternative is an interesting exercise as the issue is relatively complicated. Bitcoin, for example, has largely been described as a 'digital gold,' offering its best use-case as a means to settle transactions. Rival Ethereum is largely considered closer to a 'digital oil,' serving to power an ecosystem of digital contracts. There are many different types of crypto currencies across the market. Besides Bitcoin, stablecoins could make a convincing case for serving in the place of traditional currency. Stablecoins are cryptocurrencies that are backed by another asset, such as a currency, commodity, or financial instrument. Stablecoins are not as volatile as non-backed cryptocurrencies and have increased traction across various markets. European fund giant DWS has announced plans to launch the first euro-backed stablecoin in 2025, which we think demonstrates the potential of these coins. Still, stablecoin issuer Paxos was under SEC investigation for their USD-backed stablecoin due to speculation about possible violations of securities laws. The SEC decided it will not be continuing action in the case, but the event does highlight the issue of stability for the asset. Blockchain technology may also see an increase in its number of use cases. As the world becomes increasingly data-driven, blockchain may be able to help with data and information management. Healthcare is thought to be an industry that could benefit from blockchain technology, with opportunities surrounding the security of patient data, transparency and traceability in the supply chain, and a reduction in the risk of data breaches. Blockchain may also find use in the financial industry as it has the potential to streamline banking and lending services, reduce counterparty risk, and decrease issuance and settlement times. While classifying crypto as an alternative asset class offers the potential for major upside, there remains uncertainty. One of the biggest concerns is regulation. In many countries, crypto is already becoming increasingly regulated -- but in the U.S., lawmakers have been slow to respond, forcing companies to rely on legal battles as they fight to establish greater clarity in the market. Furthermore, many states have adopted their own laws on cryptocurrencies, creating barriers for some would-be market participants. Conclusion Despite these risks, there remains optimism over the growth of cryptocurrencies, and that has fueled a significant rise in the price of Bitcoin and Ethereum over the past 12 months. Global conflicts and geopolitical tensions have led some to believe that cryptocurrencies offer a potential hedge against instability in currency fluctuations and financial markets. Amid the rapid rise in inflation in Venezuela and Argentina, El Salvador has adopted Bitcoin as an official legal tender. Additionally, former U.S. president and current presidential candidate Donald Trump has suggested that the U.S. should establish a Bitcoin strategic reserve. Within the financial world, BlackRock CEO and co-founder Larry Fink has described Bitcoin as 'digital gold,' offering some legitimacy to it being used as a hedge against currency fluctuations. According to Mr. Fink, 'It is a legitimate financial instrument that allows you to have maybe uncorrelated, non-correlated returns.' BlackRock has launched a Bitcoin ETF, which saw $4 billion in net inflows in the second quarter, and, more recently, an Ethereum ETF. Crypto seems to be gaining traction within the investment community and seems to hold promise in regards to growth. Despite recent excitement around crypto, there are still some factors that can be cause for concern -- such as a lack of regulation, a lack of fundamentals for valuation, and other potential pitfalls. Yet even with these concerns, the future of crypto still appears to be bright as the asset appears to be gaining increasing traction.

Stocks closed lower on Thursday on fears that interest rates will stay higher longer. New economic data showed a strong economy. Weekly jobless claims fell to 215,000, pointing toward a strong labor market. The S&P 500 fell 0.7%, the Nasdaq was down 0.4% and the Dow declined 1.5%.

The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

In this edition, we assess exposure of some consumer finance banks; Compass Minerals puts its dividend on ice; Humana's stock pitch shows a rare opportunity; and Enel SpA, Warner Bros. Discovery, and Puma.

U.S. markets held steady intraday Monday following record highs last week. Amazon.com replaced Walgreens Boots Alliance in the 30-stock Dow. New home sales in January 2024 rose 1.5% from December to a seasonally adjusted annual rate of 661,000 units. The median sales price was $420,700 and the average sales price was $534,300. The Nasdaq rose 0.2%, the S&P 500 fell less than 0.01% and the Dow was unchanged. Crude oil rose $1 to $77 per barrel, while gold fell $12 to $2038 per ounce.

With earnings season nearing an end, insider sentiment remains generally positive -- which is good news in light of the solid move higher in share prices over the past two weeks. After two weeks of bullish signals that were based on light transaction volume, this week brings 'more typical' insider-sentiment indicators that are built on an increasing number of insider transactions. The one-week sentiment data from Vickers Stock Research has softened, but remains strong enough to keep the eight-week data solidly neutral. The weak link, though not seriously so, is sentiment from insiders on the tech-heavy Nasdaq. With tech stocks outperforming over the past few weeks and for the year-to-date, that's not a huge surprise.

Last week, we noted that corporate insiders were responding to ongoing weakness in stocks with a growing sense of opportunity, this as expressed in weekly data from Vickers Stock Research. This week, the song remains the same: stocks continue what appears to be an orderly but noticeable pullback and insiders continue to respond by buying the falling shares - especially at companies that list on the tech-heavy Nasdaq.

The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

In this edition, streaming services changing their channels; BRP looks promising; China's AI is calling; and Autoliv, Sirius XM, and American Express.

In this edition, valuations attractive for media firms; Europe's equity market outlook; raising our expectations on Broadcom; and Chr. Hansen, TBP Group, and BorgWarner.

Fed on the Sidelines: What's Next for the Market?

In 1Q23, stocks continued to recover from the bear-market lows of 2022, with the S&P 500 rising 7% for the quarter. Performance was led by last year's laggard sectors, including Communication Services and Technology. Last year's top-performing sector, Energy, was the worst in 1Q23. Financial Services, including banks, were not far ahead. The average stock in the Argus Universe of Coverage rose 4% in the quarter; the median stock advanced 2%. The average BUY-rated stock rose 5.4% and the average HOLD-rated stock gained 3.4%. Recently, we raised our sector rating on Technology to Over-Weight, and expect outperformance into 2Q -- especially if interest rates head lower. We also raised our rating on Financial Services, and the bottom five stocks in our list point to potential value opportunities.

Recession on Hold: Our Monthly Survey of the Economy, Interest Rates, and Stocks

With a rally off the October bottom, the S&P 500 (SPX) at its February 2 high had retraced (using intraday prices) slightly more than 50% of the bear market. The NYSE Composite, the Dow Jones Industrials, (DJIA) and the S&P MidCap 400 (MDY) all have recaptured over 61.8% of their respective bear markets. At its high on February 2, the Nasdaq 100 (QQQ) had seen a 38.2% retracement, while the Nasdaq Composite hasn't quite reached that minimum takeback.

Monday Tee Up: Retail and Tech Earnings, FOMC Minutes

Stocks rose modestly on Monday morning, led by the Consumer Staples sector, after recovering from early losses. Chinese economic data was weak, as retail sales and industrial output both fell in July and missed consensus forecasts. On the housing front, the National Association of Home Builders said that its homebuilder sentiment index fell to 49 in August, down from 55 in July and the eighth straight monthly decline. The Dow rose 0.3%, the S&P 0.2%, and the Nasdaq 0.4%. Crude oil fell $3 to $89 per barrel, while gold fell $20 to $1796 per ounce.

The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

Stocks rose modestly on Wednesday morning following Tuesday's massive selloff. Microsoft shares rose 6% after the company posted stronger-than-expected fiscal 3Q results and projected double-digit revenue growth for the next fiscal year. On the negative side, Alphabet shares fell 3% after disappointing first-quarter sales and earnings. The Dow rose 0.3%, the S&P 0.4%, and the Nasdaq 0.4%. Crude oil fell slightly to $101.50 per barrel, while gold dropped $18 to $1886 per ounce.

This edition features our oil market update, Sea's challenges in shoring up profitability, the rhythm of media entertainment's pulse, and BASF, Alibaba, and BlackRock.

Some of the more-obscure technical indicators we monitor remain bearish. Some are short-term in nature and some are intermediate-term indicators, dealing with breadth and also with price. We said on Monday that this week could be important for stocks -- and with Monday's price action, things are off to a bad start.

Discovery is the one of the largest global media providers with over 2 billion cumulative subscribers in over 220 countries. Its three traditional networks (Discovery, TLC, and Animal Planet) each reach over 84 million U.S. households and more than 200 million international subscribers. The top two networks (HGTV and Food Network) acquired in the Scripps transaction are available in more than 87 million households in the U.S. The international segment consists of national and pan-regional networks over 294 unique distribution feeds in 50 languages.