Monday, August 24
The year-end plunge in cryptocurrencies has rattled companies that had bet heavily on bitcoin, sending share prices tumbling and reviving fears of a bubble.Below AFP explains what happens to these bitcoin-buying firms when prices drop.Why accumulate bitcoin?Bitcoin surged this year, reaching a record above $126,000 in October.Companies began buying and holding bitcoin to diversify their cash reserves, protect against inflation or attract investors chasing high returns.Some were already linked to the cryptocurrency, such as exchanges or "mining" firms that use powerful computers to earn bitcoins as rewards.Others from unrelated industries also started buying in, boosting demand and driving its price even higher.Why is buying risky?Many companies borrowed money to buy bitcoin, betting that i
Active investing could have an edge over passive strategies in 2026 as markets become more selective, according to Sunil Sharma, chief investment strategist at Ambit Global Private Client. In an interview, Sharma says wider dispersion in earnings, valuations and sector performance may reward stock selection over index-based investing in the year ahead. Edited excerpts from a chat on how to invest in the new year:As we step into 2026, have things got better for investors in the equity market, or do you think the new year will be much like 2025?We believe investors are under-appreciating the structural benefits that ensue from a high real growth, low inflation environment. Low inflation underpinned long expansions in the U.S. in the 1990s and 2010s, creating real economic prosperity, increas
