If you talk to stock investors and crypto investors, neither group has had a very enjoyable time this year. But the main difference between the two markets is that while stocks are currently experiencing a bear market correction, the crypto markets are in near freefall. While the equities markets have a long history of ebbs and flows, the crypto markets have only really been around since 2009, and never have they seen such a difficult macroeconomic environment.
While it probably won’t happen at this point, the fear for crypto investors is how low the actual bottom can be. For now, Bitcoin seems to be forming a support level around $20,000, but it’s already breached that level a couple of times. There’s too much institutional investment for the market to ever go to zero, but the crypto market cap has already fallen from more than $3 trillion to less than $1 trillion in a matter of months. Can you imagine if the S&P 500 fell by 67%? Crypto volatility is certainly for those investors with strong stomachs.
With prices at multi-year lows for both stocks and cryptocurrencies, where is the best place to deploy your capital? If you ask us here at Pubco Insight, there’s a far likelier chance that stocks rebound and return to highs much faster than crypto does. It’s not that we don’t like cryptocurrencies as investments, it’s just that equities provide the highest upside from their current price levels. Here’s a list of 6 stocks that we feel confident will outperform a majority of cryptos over the next 12 months.
Palantir is the data analytics company that for the most part, remains shrouded under mystery, even as a publicly traded firm. What we do know is that governments love using their Foundry and Gotham platforms for analyzing large amounts of data. The company has been beaten down like many other popular growth names during this correction but just as the other stocks are, Palantir’s now in oversold territory. The stock just received a Buy rating from the Bank of America earlier this week after the investment firm initiated coverage of PLTR. On top of that, the ongoing Russian invasion of Ukraine has brought data analytics and national security to the forefront, and many believe Palantir will benefit from this narrative.
iQSTEL is a stock we’ve been eyeing for a while at Pubco Insight. The company has been aggressive this year acquiring several telecom companies, and turning down a recent offer for its EVOSS electric vehicle division. Instead, iQSTEL CEO Leandro Iglesias revealed that iQSTEL is likely going to spin off the segment for its own NASDAQ-listed IPO in the near future. iQSTEL is rapidly expanding its multiple divisions and remains on track to hit a record of $90 million in annual revenues this year. It’s a company that has its hands full, but it is building a strong foundation for recurring annual revenue growth for the future.
Another popular stock that has seen its valuation cut in half this year, Nio is a Chinese EV maker that competes with companies like Tesla (NASDAQ:TSLA) and BYD (OTC:BYDDY). While a lot of Chinese industry has been affected by the COVID-induced lockdowns in Shanghai and Beijing, Nio has held reasonably strong throughout the quarter. Nio has several new models coming onto the market this year including the ES7 SUV and the ET5 sedan which will directly take on the Model 3 from Tesla. The company is also in the process of expanding its presence into European markets like Germany after a successful launch in Norway last year. As much as Tesla dominates the US EV market, the Chinese EV market accounts for 53% of the global EV supply. If you want to bet on EVs, then investing in Chinese EV makers is a way to hedge against investing in Tesla.
CleanVision Corp (OTC:CLNV)
“We want to do good by doing good”. It’s a mantra that is respectable and encouraging for investors who like to see the companies they invest with, make the world a better place. CleanVision is attempting to help local governments tackle the issue of plastic waste in our oceans. With global plastic waste expected to triple by 2060 according to the Organisation for Economic Cooperation and Development, we need more companies to step up and try to make a difference for our environment. CleanVision is doing just that and taking the process one step further with its Plastic Conversion Networks that is helping to establish in countries such as India and Morocco. These PCNs, as they are called, convert collected plastics into renewable energy sources like its AquaH hydrogen fuel. While the company is still pre-revenue, the establishment of PCNs is expected to bring in tens or even hundreds of millions of dollars in revenues annually within the next couple of years.
At one point, SoFi was the best performing of the SPAC IPO class from Chamath Palihapitiya, which also included Virgin Galactic (NYSE:SPCE), Clover Health (NASDAQ:CLOV), and OpenDoor Technologies (NYSE:OPEN). All three of those, as well as SoFi, are trading well below $10.00 per share now. Is SoFi deserving of the drop off in price? Fintech stocks in general have really seen their multiples slashed. This is likely due to digital payments being associated as a COVID-industry. We believe that fintech is the future of finance, and that companies like SoFi are here to stay. The stock was also hit by the student loan forgiveness program in the US, one of its largest revenue streams. That’s been priced in. What hasn’t been is that SoFi owns a national bank charter now which is a key to its future growth. SoFi has been thrown out with the rest of the SPAC stocks, but it is a company that has some legitimate growth potential.
Here’s a way to gain exposure to the Metaverse and Bitcoin without having to buy any cryptocurrencies. SFLMaven is an online, consumer-facing retail brand that sells luxury jewelry through its eBay marketplace. The company has recently taken the leap into the Metaverse and has established the world’s first ever jewelry-NFT store in Decentraland. Will it pan out? We’re still unsure, but the fact that SFLMaven is using cutting-edge technology and novel innovations to further its brand is certainly a bullish sentiment for investors. SFLMaven also holds Bitcoin on its balance sheet, and openly welcomes its consumers to use it for payments. It is this type of forward-looking vision that helps companies succeed in growing their brand and establishing themselves as industry-leaders in innovation.
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