Market Update – 10/29/2021
US economic growth experienced a slowdown in the third quarter due to the spread of COVID-19 Delta variant and global supply chain crisis, growing at 2% lower than the expected rate of 2.6%.
The impact of the supply chain shortage is also reflected in various company operating results. Amazon’s revenue growth is at the lowest levels seen in seven years, while Apple’s revenue is also lower than expected. Both companies anticipate only limited improvement in the short term.
Bitcoin and other virtual currencies have recently hit new highs due to the approval of the first Bitcoin ETF by the SEC.
While direct ownership of Bitcoin is the most intuitive method of cryptocurrency investment, password security and exchange trustworthiness continue to be big issues. The combination of ETF and futures can solve the security issue, but returns may be slightly lower than direct investments.
Our view continues to be wary of virtual currencies. However, if investors fully understand the risks, it may not hurt to invest moderately within a diversified investment portfolio.
In addition, as virtual currencies gradually become more accepted by financial institutions, you may also consider using Private Placement Life Insurance (PPLI) for investing in virtual currencies to grow your investments income tax free and increase after-tax returns.
