News & Insights
October 29th, 2021

Monthly Movements – October 2021

Looking back on October, several key events occurred and are worth watching going forward. Here are a couple that stood out.

Trump’s SPAC Attack
Digital World Acquisition Corporation is a SPAC (blank check company) that took off last week after news that the company would merge with Trump Media & Technology Group to bring the former President’s media platform public. DWAC, which was trading around $10 to start the week of October 18th, was up more than 1200% and had 12 trading halts on Friday (October 22nd).
While day traders have been busy, others have come out with some comments that warrant further thought. Former White House Communications Director Anthony Scaramucci questioned if this SPAC success might prevent a 2024 election run by Trump. “The more it goes up, the less likelihood Donald Trump is running for President in 2024. I’m rooting for that SPAC. I hope that thing is a 10-1 move,” commented Scaramucci on CNBC.1
Bitcoin near record highs october 2021

 

Bitcoin Finally Has an ETF (Sort of)
After months of speculation, a Bitcoin ETF has started trading. BITO, the ProShares Bitcoin Strategy ETF, began trading on Tuesday, October 19th. Investors have been looking for a direct ETF product for some time to gain access to the crypto market through a more mainstream avenue, rather than buying and holding the cryptocurrency directly through a separate wallet. This product doesn’t own or buy Bitcoin, though, but rather Bitcoin futures which might not match Bitcoin in terms of price over time. The fund saw inflows of over $1B in assets within two days of trading as investors flocked to the new product.1 Other companies hope to have similar products approved shortly. As many investors look for regulators to validate cryptocurrency, events like these are milestones towards that end goal.
Bottlenecks Remain
Recently, one of the more critical stories in the news has been the continual strain on the global supply chain and logistics pathway for many of the goods we as consumers want. We import many of our goods and thus remain dependent on these sizeable international supply chains. The ports of Los Angeles and Long Beach have been log jammed for months now, and this will probably continue for the next 2-3 quarters. 40% of all shipping containers in the US enter through these ports1, so it is not a minor issue. Both ports recently came out with new fines to penalize any lingering containers and incentivize them to move along in the system. In addition, both ports are now operating 24 hours a day to further assist in clearing the backlog. Time will tell if these changes prove to be effective. These port issues are not the only problem with the supply chain, however. Numerous factors are all in an intricate dance trying to figure out how to work best with each other given a “surge in consumer demand, high transportation expenses, labor shortages, manufacturing delays, trade policies, and inflation.”2

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