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Letter to the editor: Private investors should think before leaping back into public equity markets

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The past two weeks of US Bitcoin spot ETF inflows were less than disappointing. The bullish camp suspected that after the halving, the ETFs would see a surge of inflows. The bears believed it would be a sell the news event, with the halving’s bullish effects already exaggeratedly priced. So far, it seems the bears have been correct, but with the latest ETF inflows, could the correction be complete and the market sentiment shifting?
The past two weeks of US Bitcoin spot ETF inflows were less than disappointing. The bullish camp suspected that after the halving, the ETFs would see a surge of inflows. The bears believed it would be a sell the news event, with the halving’s bullish effects already exaggeratedly priced. So far, it seems the bears have been correct, but with the latest ETF inflows, could the correction be complete and the market sentiment shifting?

The performance of 11 companies, dubbed the “Granolas” by Goldman Sachs, helped send European stocks to a record high in February. But despite the positivity, investors should be consciously aware that such a narrow range of companies in both the US (in the ‘Magnificent Seven’ tech stocks) and Europe are driving equity returns.

As we all know, ‘diversification is the only free lunch’ in investing. Private markets provide a complementary allocation to public markets with the potential to reduce this performance concentration.

The fact that companies are staying private for longer, the growth of private markets themselves, and the wider range of asset classes and investment strategies available to investors offers an opportunity to diversify and reduce volatility and to target alpha from other sources.

Thanks to ‘democratisation’ this is more available to private investors than ever before.