Welcome to 10 Things Before the Opening Bell.
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1. The disruptive power of the metaverse can't be overstated — that's according to Jefferies. Investors are warming to all things virtual, including digital land, luxury items tied to the blockchain (did you hear about the metaverse yacht?), and virtual economies.
Jefferies thinks investors should view the metaverse as having the same disruptive potential as the early internet. The investment bank recommends concentrating first on hardware, then software, and finally looking at metaverse-related businesses.
Other investment giants agree. Morgan Stanley analysts called the metaverse "the next big theme" in investing, while other high profile investors see it as a trillion-dollar opportunity.
But the trend goes well beyond Wall Street, and the digital economy is being boosted by individuals as well.
"Anyone paying attention to the NFT market knows that investors have flocked in part because they believe they can achieve a high return on investment by purchasing NFTs," said analysts at Chainalysis.
The metaverse economy has been booming:
- Retail buyers made up 80% of NFT transactions this year
- Celebrities, fashion houses, and star athletes have entered the digital marketplace with unique NFT releases
- In the last week, there has been more than $70 million in digital land sales on the virtual platform, Sandbox
2. US stocks are set for another winning day after rising by the most since March. Omicron nerves are settling, though oil traders aren't as convinced — prices are sliding. Here are the latest moves on the market.
3. Morgan Stanley's Mike Wilson sees risks rising for the stock market. The longtime bear is keeping a close eye on inflation and Omicron. He shared which risk is worth sweating over — and the three sectors that present the best opportunity.
4. Earnings on deck: Gamestop, Campbell Soup, H&R Block, all reporting.
5. More than half of US bitcoin holders bought the cryptocurrency for the first time this year. A new Grayscale study found that demand for the leading crypto has surged to new heights this year despite its volatility. See the numbers here.
6. Warren Buffett's business partner vowed to never buy crypto, and argued Elon Musk's overconfidence has fueled his success. Charlie Munger also praised Chinese regulators and said today's markets are wilder than during the dot-com bubble. Here's what else the legendary investor had to say.
7. A computer scientist claiming he created bitcoin will hold onto $54 billion of it after a civil lawsuit. A Florida jury ruled in favor of Craig Wright, who will keep a cache of 1.1 million bitcoins. Wright said the decision vindicates him as the creator of the world's most valuable crypto.
8. The numbers behind Cathie Wood's nightmarish 2021: Ark Invest's flagship fund has plunged as much as 24%, dragged by tech stocks that have been battered by the prospect of central bank easing. Now six out of eight of Ark's ETFs are in the red.
9. Sylvia Jablonski, the investing chief of Defiance ETFs, shared her views on how to play an emotionally-charged market. She thinks now is a great time to get into digital assets. Jablonski broke down the five industry heavyweights with surprising exposure to NFTs —and three buying opportunities to capitalize on volatility.
10. This 12-year-old girl made $1.6 million from her own NFT collection. She shared the process, tools, and platforms she used to sell JPEG NFTs and generative art. "It sold out in hours."
Compiled by Phil Rosen. Feedback? Email [email protected] or tweet @philrosenn.
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