Updated: Apr 25, 2021
Last Week in a Nutshell
Last Friday's closing bell capped off an emotional tug of war, with all US Indexes closing slightly down for the week. The tug of war - of course - between Federal Reserve Chair, Jerome Powell and pesky inflation expectations.
On Wednesday afternoon, Powell stated, "we will continue to provide the economy the support that it needs for as long as it takes." Promptly, the Nasdaq turned from red to green, closing up .4% on the day. However, the following day the 10-Year note rose 4.91% leading to a painful 3.02% decline in the Nasdaq.
The 10-Year note has become a very popular topic in 2021 closing up 6.1% last week. I'm far from an expert on the bond market but the 10-Year is now up 87% on the year which seems like a pretty dramatic rise in bond yields in less than 4 months.
Why is this important?
Rates have been held at historic lows for the last 12 years - with rates so low for so long, we have see equity markets (especially tech) perform incredibly well. Since 3/9/2009, the Nasdaq is up 944%, the S&P 500 is up 478% and the Dow Jones (DJIA) is up 398%. Some have begun to wonder if this party is coming to end.
The DJIA has been the best performing US major index of 2021, will this week be the same story?
Will the 10-year continue its ascend?
Will Covid-19 cases in the US stay tamed or will it follow Europe's trajectory?
Stock of the Week
** I have a position in that security
Audioeye Inc (NASDAQ: AEYE) **
Suite of products that help companies keep their websites more accessible and compliant for people with disabilities
Technology making digital content more accessible and more usable, for more people
When integrated with voice recognition and AI engines, Audioeye's platform aims to provide for a full audio internet experience coupled with voice navigation and voice-driven transactions
According to the company, only 2% of websites are currently fully accessible for people living with a disability
1.8 billion websites globally
1 billion people globally living with disabilities and 61 million + in the US
In the digital age, companies need their websites to be accessible for all individuals to 1) reach a wider audience and 2) avoid lawsuits related to the Americans with Disabilities Act (ADA)
In the company's latest annual report, it was estimated that 3,000 lawsuits were filed in federal and state courts in 2020
Strategic partnerships (i.e. with WordPress & Shopify) that could drive future revenue growth
The company ended 2020 with 32,000 customers which was 370% year-over-year growth
Cryptocurrency of the Week
** I have a position in that security
Chiliz is a blockchain that connects athletes and sports franchises to their fans
Sports teams and franchises can have their own, "Fan Token" created on the Chiliz blockchain that can be bought and sold on that Chiliz blockchain (try not to fret over understanding blockchain too much and focus on the use case in the below section)
Use Case - Juventus Football Club
Juventus launched their own token built on the Chiliz blockchain that allows fans of Juventus (and really anyone) to buy the Juventus Fan Token (JUV). Per Juventus, "the launch of the, 'Juventus Official Fan Token' will evolve the club's global fan engagement strategy and help to expand our global audience by bringing our fans closer together."
What is a JUV owner entitled to?
Share of influence on club decisions (i.e. sponsorships and what jerseys should be worn)
Rewards such as: matchday tickets, exclusive experiences, cashback offers from official online shops, etc.
Other sports teams that have partnered with Chiliz:
UFC (Ultimate Fighting Championship)
If any of the stocks/cryptocurrencies mentioned in this article strike interest in you, then please feel welcome to reach out to me and request further detail on that individual stock/cryptocurrency.
The information contained in this newsletter should NOT be seen as investment advice or recommendations. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. One should perform their own due diligence and understand the associated risks before making investments.
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