We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.
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This weeks issue: Coinbase, Coinbase stock, Cryptocurrency, SEC, Crypto vs. regulators, British economy, Fintech industry, U.S. dominance, Fintech fund, Largest economy’s in the world over time, FED, interest rates, Interest expense on the income statement, Long term debt, 2020 and 2021 SPAC bubble, Electric vehicle producers, EV stocks, VinFast debut, IPOs by year, Streaming prices, Expensive streaming, Cable vs. streaming.
British investment due to American dominance
The world’s largest economy is the U.S. The U.S. economy has dominated the world for over a century but many point to the post-war period in the late 1940s as the time the U.S. surpassed the United Kingdom. The U.S. has dominated numerous industries during various periods including steel, automobiles, financials, energy, and technology. We point to the 1940s as the U.S. was booming during this period and Europe was rebuilding from a costly war.
A large part of the recent success of the U.S. economy comes from technology and financials. The U.S. is home to the financial capital of the world, New York City, and the technology capital of the world, San Francisco. These two sectors have allowed one another to grow at an exponential pace over the last 20+ years. Venture capital and private equity have grown in popularity over the years as they have helped fund some of the largest companies in the world.
As the global leader in technology and finance, the U.S. has blended the two sectors that we know to create Fintech where founders look to revolutionize finance through technological advancements. It’s part of the reason that robo advisors, blockchain technology, new brokers, and other forms of technology have been created in recent years. Much of this Fintech was developed on the backs of venture capital investors.
The success of Fintech in the U.S. has led the United Kingdom to launch its Fintech fund with up to $1.27 billion in capital. The fund is backed by Mastercard, Barclays, and the London Stock Exchange and will invest in growth-stage financial technology companies.