Discover why Bitcoin futures trading, Westfield’s big sellout and Nike’s ambitious growth targets mean for you and your investments. (Reading time 2:46 mins)

This information does not take into account your personal objectives, financial situation or needs. You should consider if the relevant investment is appropriate having regard to your own objectives, financial situation and needs.

 

1. Bitcoin futures launch

Bitcoin futures started trading on the Chicago Board Options Exchange (“CBOE”) for the first time.

These futures effectively allow people to speculate on whether Bitcoins will rise or fall in price by a future date – without actually buying any Bitcoins.

What does this mean if you’ve purchased Bitcoin?

Some market commentators believe the launch of Bitcoin futures signals the acceptance of the cryptocurrency as an investment instrument rather than merely a fad. Besides CBOE, there are other financial firms planning to launch Bitcoin futures.

The downside of the growing availability of Bitcoin futures is it will allow traders to easily short (bet that prices will drop) Bitcoin should they deem it overvalued. If there is a turn in Bitcoin prices, it could be a very dramatic drop.

What does this mean if you’ve invested money with AtlasTrend?

We are long term investors who exclusively invest in listed companies. As a result, the AtlasTrend managed funds only invest in listed shares and are not currently able to invest directly in Bitcoin or Bitcoin futures on legal grounds.

However, down the track you might see us invest in companies benefitting from blockchain, as we believe the underlying technology powering cryptocurrencies will have far-reaching impact across a variety of industries.

 

 2. Westfield’s $32.8b payday

Europe’s largest shopping centre operator has snapped up its Australian counterpart Westfield for $32.8 billion – making it a $72 billion global property giant.

Both Unibail-Rodamco and Westfield own multiple shopping centres globally, and their combined tally is now over 100 sites.

What does this mean if you’re invested in shopping centre operators?

Although the company has said it isn’t worried with the potential threats posed by online retailers like Amazon, the sale of Westfield may in fact be CEO Frank Lowy’s way of exiting bricks and mortar retail while still at the top.

What does this mean if you’ve invested money with AtlasTrend?

AtlasTrend operates what we believe to be Australia’s only actively managed fund that invests solely in listed companies benefiting from the growth of online shopping around the world.

We think the Westfield sale could be an early indication that traditional shopping centre businesses might be under much greater threat over the next 10 years from the likes of Amazon and Alibaba.

 

 3. Nike’s on a roll

Nike’s share price has increased by over 22% in the last 2 months (to 12 December 2017) largely driven by Nike’s Investor Day. The annual event allows Nike to detail past performance and lay out plans for the future.

CEO Mark Parker used this year’s event to reiterate bullish revenue targets set back in 2015 – the apparel giant wants to reach USD$50 billion by 2020.

What does this mean if you’re invested in Nike?

Revenue is expected to grow at a high, single-digit rate over the next five years, driven by Nike’s Consumer Direct Offense strategy. The initiative will see the company invest heavily into e-commerce, flagship stores and rationalising their inventory.

Adidas employed a similar approach a few year ago, and it ended up supercharging their growth – Nike should hopefully experience the same level of success.

What does this mean if you’ve invested money with AtlasTrend?

One of AtlasTrend’s managed funds invests in Nike. We believe that Nike’s e-commerce push and corporate rationalisation is likely to be a winning strategy, which will allow the business to expand their margins and grow their business globally.

 

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About Kent Kwan

Kent Kwan is a Co-Founder of AtlasTrend, an online investment platform that makes it easy for anyone to learn and invest in trends transforming our world. Kent has over 15 years experience in financial markets including as Chief Investment Officer at Arowana International Limited, and roles at JP Morgan and Macquarie.