Daily Brief - Tech investors earn over $500bn from IPOs, time to rotate into crypto? (Oct 14, 2021)

First of all, an admission. We took the title for today’s DB from the Financial Times - I mean, one would expect those guys to know how to make a good headline, so why reinvent the wheel…anyway, we ramble.

Pertinent to our space, the two largest recent IPOs are both for trading venues: RobinHood and Coinbase - with $32bn and $72bn of market cap respectively.

Not bad, huh?

Certainly not for them! That number is the highest ever recorded. Thanks, QE.

But the statistic offers a cautionary tale. The number comes from Pitchbook and their own analysts state “People are rushing to the exit just so the door doesn’t slam right in front of them”.

Now timing the bull market has been impossible, especially for the tech sector, but with lingering inflation and inflated valuations it’s not unreasonable if investors think of reducing their tech exposure

But what can replace Tech?

Well for one, Crypto. If you believe the story, and are not comfortable with BTC’s power consumption, just invest in ETH with its proof-of-stake system. See below for our latest on ETHUSD.

And secondly, inflation-stocks. There are a number of ways to play inflation, from energy and commodity stocks, to logistics and consumer product companies. We will write more in the following days.