Wall Street

The big market news was Tesla’s joining the S&P 500 followed by a meteoric rise making Elon Musk the wealthiest person on Earth. This will also be a record year for IPOs with Roblox planning to raise $1 billion with a valuation of $8 billion or more. Coinbase has announced it has filed for an IPO in 2021. This could be a big one also. Coinbase is a digital currency exchange and the most valuable American crypto company. Bitcoin closed at 8 times its 52 week low and Etherum closed at 10 times its low. I believe a successful IPO by Coinbase could signal the legitimacy of cryptocurrency. The IPO stocks are speculative. With interest rates at essentially zero, investors are looking for something they perceive having growth potential. Tech is certainly in that category, but the bubble could break as we saw in 2000. High volatility seems likely to me.

Disclosure: I am a private investor in Roblox and Coinbase.