It is only November, but it is already time to look back at this amazing year in markets so we can prepare for 2014.
The US Averages are really rocking this year, all up well over 20 percent. Big woop. The only good news for poor people is that hedge funds are underperforming the averages.
A whopping 259 stocks have doubled in price this year and 68 have tripled. Pretty cool.
In the last 5 years (since the bottom), 98 stocks have climbed over 1,000 percent (many over 4,000 percent). Ok…that’s got my attention.
See, the media is stuck on Facebook, Twitter and shiny new objects, but if you are listening to the whisperings of the market, there are some boring old objects that could make you very wealthy. That is the market I like to talk about.
This is why we created Stocktwits and it is why Ivan and I created The Stocktwits50.com site. The markets telegraph the future.
Backing out all the numbers though, three main themes stand out for me in 2013:
1. Living Like a rockstar –
It has never been easier to live in the future. As the social web accelerated this year with Twitter, Uber, AirBnB, HotelsTonight and now SnapChat, anyone with a bit of disposable income can live like a rockstar. Smartphones and software are making magic happen. EVERYONE wants to live like a rockstar so look for more money to chase the price up of assets that make this happen. UBER and or AirBnB will make Twitter look like a small IPO in 2014.
The good news about 2013 and the social web is that financial institutions can’t figure it out. Sure they have all the money (for now), but I know in my gut we will need them less and less each year going forward. Crowdfunding is in fact the real big financial institution story of 2013, but the trend is so early that it can have it’s due next year. Matt at Rolling Stone has a great roundup of #askJPM and it proves that the while the banks may too big to fail, they are also too big to succeed.
3. Bitcoins –
Take a look at a monthly chart of the beloved Bitcoin. I have been writing about it on this blog since it crossed $40 (my kids own a few). In March, I called it ‘The Jurassic Park‘ of currencies. When Fred Wilson invested in Coinbase (and Warren Buffett asked what they were the same week), I said the trend was now a little safer (meaty actually) and could be taken more seriously. Bitcoins have more than tripled from that blog post.
In 2014, The Bitcoin drama will really accelerate. The entrepreneurs and investors are being denied US bank accounts as we speak (I read that in Forbes though and refuse to link for the sake of your eyeballs). Furthermore, the US has already ceded dominance in Bitcoin trading. I don’t know what will happen to the price, but I do know that they will be accepted in a lot of places making certain nations and people feel like rockstars.
PS – In my hundreds of NYC trips, I have never eaten on the Upper East Side. This week, Charlie Gasparino of Fox Business News, took me for a fantastic dinner at Elio’s. I felt like a rockstar because I was sitting next to Magnum PI (Tom Selleck). Later in the eve, in walked John Corzine. Not quite a rockstar, just a putz. I asked Magnum PI to arrest him, but he just looked at me funny. I did make it onto ‘Page 6‘ of the NY Post though which is supposedly where rockstar sightings often get reported on.