Was the Santa Claus rally stolen by Bitcoin?

Despite being valued at $1,000 at the beginning of this year, Bitcoin has surged just shy of the $10,000 milestone early Sunday morning. The recent spike came from investor confidence in Black Friday and Thanksgiving shopping results as deals stirred a record number of crowds. With stock prices at all-time highs and Bitcoin roaring higher, the hunt for value into 2018 is going to take more than Rudolph’s glowing red nose. fx_image

Starting with Santa’s nice list, the top ten market leaders (Year to Date) are as follows:

  1. Alibaba (Specialty Retail)
  2. Facebook (Internet Information)
  3. Amazon (Catalog and Mail Order)
  4. Apple (Electronic Equipment)
  5. Taiwan Semiconductor Manufacturing Company Limited (Semiconductor)
  6. Visa (Credit Services)
  7. Wal-Mart Stores (Discount, Variety Stores)
  8. Alphabet (Internet Information)
  9. Microsoft (Business Software)
  10. UnitedHealth Group Incorporated (Health Care Plans)

The technology sector was the clear winner this year, representing five of the top ten. If anything is certain going into the holiday season, the focus for investors will remain on consumer confidence. The ease of electronic payments and alternative checkout options brings on an entirely different challenge for these market leaders. So could the popularity of Bitcoin actually carry stock prices even higher?

As these companies look to make the shopping experience faster, cryptocurrencies become a viable alternative. Microsoft and Tesla are among the few largest companies that are already accepting Bitcoin as a legitimate source of payment. If this wave continues and more companies in the top ten get involved, the parabolic moves will continue into 2018. Pullbacks in these sectors will offer buying opportunities until we see a significant level of volatility come back into the markets. Anyone late to the party has to remember that, “the market can remain irrational longer than you can remain solvent.”

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