Finance

OCBC and UOB are scheduled to kick off third-quarter earnings season for Singapore-listed banks on Wednesday, while DBS is expected to report on Friday.
Share prices of all the banks jumped in the lead-up to earnings as markets started pricing in more interest rate hikes than what the U.S. Federal Reserve has indicated.
In addition to earnings, the Singapore banks’ exposure to Greater China would also come under the spotlight following the financial troubles at Chinese property developer Evergrande.

View of the Singapore Central Business District.
Suhaimi Abdullah | Getty Images News | Getty Images

SINGAPORE — Shares of Singapore’s top banks jumped in the lead-up to their third-quarter earnings this week as the global economic recovery gains momentum.
OCBC and UOB are scheduled to kick off third-quarter earnings season for Singapore-listed banks on Wednesday, while DBS is expected to report on Friday.

DBS Group Holdings, the largest of the three Singapore-listed banks, hit a fresh 52-week high on Thursday. The stock has climbed 25.9% this year as of Friday.
The other two banks, Oversea-Chinese Banking Corp and United Overseas Bank, have also inched closer to their 52-week highs. OCBC has gained around 17.3% this year, while UOB has risen 18.4%.
All three banks have beaten the benchmark Straits Times Index, which rose 12.5% so far this year.

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Banks have been among the strongest performing sectors in stock markets globally this year, said Geoff Howie, market strategist at the Singapore Exchange.
“Interest rate expectations have been a key driver of international bank stocks in 2021,” Howie said in a report in mid-October.

The yield for 10-year U.S. Treasury rose over the last month as markets started pricing in more interest rate hikes than what the Federal Reserve has indicated. It comes as a recovery in the U.S. economy and disruptions to global supply chains push up inflation.  

Higher interest rates are generally good for the profit margins of banks. Rising rates also tend to point to a strengthening economy, which may mean fewer loan defaults.
Singapore’s central bank manages monetary policy through setting the exchange rate — instead of interest rate. As a result, domestic interest rates are influenced by global rates.

Earnings preview

The three Singapore banks have reported improved earnings in the last few quarters as the global economy recovers from the Covid-19 pandemic. Analysts said the momentum will likely continue.
Here’s what analysts are expecting from the banks’ third-quarter report cards, according to estimates compiled by Refinitiv as of Monday:

Third-quarter earnings estimates

Bank
Net income
Year-on-year change

DBS
SGD 1.57 billion
21.4%

OCBC
SGD 1.02 billion
-0.45%

UOB
SGD 982.4 million
47.1%

“As in the previous quarter, we expect all banks to report robust earnings growth (YoY) on lower credit costs,” said David Lum, an analyst with brokerage Daiwa Capital Markets.
Credit costs refer to the amount of reserves that banks set aside in anticipation of loan losses.
Like many banks globally, the Singapore lenders made those provisions last year when Covid weighed down economic activity — but the banks started winding down the provisions this year as the global economy bounced back.  
Lum said in an October report that wealth management could do well for the Singapore banks, but trading and market-related income might come under pressure in the third quarter.

Greater China exposure

Greater China accounted for 30% of DBS loans in the first half of 2021, according to Krishna Guha, equity analyst at investment bank Jefferies. The figure for OCBC and UOB stood at 25% and 16%, respectively, he said in a September report.
Slightly more than half of those Greater China loans was from Hong Kong, said Guha.
All three banks have sufficient buffer to withstand potential stresses in their Greater China portfolio, the analyst said. But lingering uncertainty could still hurt sentiment and future growth prospects, he added.
For now, dividend yield and reasonable valuation would support Singapore bank stocks, said Guha.
Jefferies has maintained its “buy” rating for all three banks.

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York, October 27, 2021.
Brendan McDermid | Reuters

U.S. stock futures rose slightly in overnight trading on Sunday as investors readied for the first trading of November.
Market participants are gearing up for another week of corporate earnings, a key Federal Reserve meeting on Wednesday and October’s jobs report.

Dow futures rose 80 points. S&P 500 futures gained 0.25% and Nasdaq 100 futures rose 0.25%.
Stocks closed out the month of October on Friday and all three major averages closed at record highs. The S&P 500 and Nasdaq clinched their best months since November 2020.
The Dow Jones Industrial Average rose 5.8% in October. The S&P 500 rallied 6.9% last month and the technology-focused Nasdaq Composite added 7.3% in October. The month marked a rebound from September, where the major indexes declined.
Corporate earnings season dominated October amid solid earnings even with global supply chain concerns. About half of the S&P 500 companies have reported quarterly results and more than 80% of them beat earnings estimates from Wall Street analysts, according to Refinitiv.

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As earnings season continues this week, investors will also be monitoring the Federal Reserve’s two-day meeting Tuesday and Wednesday. The central bank is widely expected to announce that it will begin to unwind its $120 billion in monthly bond purchases and end the program entirely by the middle of next year.

Investors will also be looking for the Fed’s comments on rising prices as inflation has been running at a 30-year high.
“The Fed is part of a global move to remove accommodation, and the market drives right past that,” Bleakley Advisory Group CIO Peter Boockvar said. “In a way, the stock market is playing a game of chicken, with this inflation move and interest rates and the response from central banks.”
The other big event for the week will be October’s October employment report Friday, which could show some improvement in hiring, as new cases of Covid-19 continued to decline.
“The change in nonfarm payrolls is expected to be a robust 450K which is likely to again lower the unemployment rate,” said Jim Paulsen, chief investment strategist for Leuthold Group. “Key to the report will be how much wage inflation rises and whether the labor force participation rate finally picks up after so many recently came of extended unemployment benefits.”
—CNBC’s Patti Domm contributed to this report.

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Chris Harvey’s reign as the year’s biggest bull won’t extend into next year.
The Wells Fargo Securities head of equity strategy, whose 2021 S&P 500 target is 4,825, predicts Wall Street will stage a vibrant year-end rally and then see a losing 2022.

“You’re going to bring equities to a level that they can’t sustain. We’ll have the equity market melt-up,” he told CNBC’s “Trading Nation” on Friday. “We’ll bring stocks to a level where the fundamentals and valuations don’t support them.”
The S&P 500, Nasdaq and Dow ended the week in record territory. The S&P and Nasdaq were up 7% in October while the Dow gained 6%.
“What we’re seeing from a lot of individuals and investors is they feel like the market is unbreakable at this point in time. We’ve had several pullbacks. You’ve bent it, but you’ve never broken,” said Harvey. “That brings another level of FOMO [fear of missing out], and that brings in a level of confidence.”
Harvey lists strong economic fundamentals, better-than-expected earnings, low capital costs and massive cash on the sidelines as fuel for gains.
“It’s late in the bull market,” he said. “Now is a period where irrationality becomes much more rational. Things you don’t expect to happen can happen, and most likely will.”

Harvey contends momentum names, which include banks, will be major drivers into year-end. He calls financials a “stealth leadership play” that will get traction from the Federal Reserve’s taper plans.

Don’t go bottom fishing

“That will put upward pressure on rates, and that’s good for banks,” said Harvey. “We want to buy things that are working. We don’t want to go bottom fishing. We don’t want to buy broken stories.”
He suggests playing the iShares MSCI USA Momentum Factor ETF.

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“The funny thing here is a lot of people believe these are high tech and all tech-type stocks,” he noted. “If you look at the momentum index and the Momentum ETF, 20% of it is in banks and three of the top ten names in the momentum ETF are banks. So, you have pretty good diversity.”
Harvey estimates the market melt-up will last three to six months. In next year’s second quarter, he expects a more hawkish Fed, decelerating growth and uncertainty surrounding the mid-term elections to start creating headwinds that could cause a 10% correction.
“I hate this comment, but I’m going to give it to you anyway. I think it is a ‘sell in May and go away,'” said Harvey. “By the time you get into late spring, early summer, you really want to turn more defensive.”
It’s still considered early for firms to deliver next year’s S&P targets. Harvey’s target is 4,715. The more bullish estimates so far include Credit Suisse’s Jonathan Golub, who has a 5,000 S&P target.
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MANAGERS AT Hub Group, a transportation company, used to be able to click a few buttons at their headquarters in Illinois and, eight weeks later, receive a new shipping container from China, ready for use in America. But recently Phillip Yeager, the firm’s president, faced a headache. After a long wait at the congested port of Long Beach, its container was at last next in line to go ashore. But it could not move because the ship in front did not have a chassis for moving its freight and was blocking the landing berth. Mr Yeager’s team scrambled to find a chassis for it. Only then could Hub get its container, a full month late.Multiply by thousands of containers, and the tale helps explain how supply chains have become so snarled, particularly in America, the world’s biggest consumer market. That is just one of the cross-cutting forces buffeting the economy. Demand for goods is incredibly strong, but companies are struggling to find workers and supplies, which in turn is pushing up wages and prices, all against a backdrop in which the pandemic—the original cause of the distortions—is fading but not gone. And officials, poised to end the extraordinary fiscal and monetary stimulus of the past 18 months, are throwing another element into the fray. At the end of its policy meeting on November 3rd, the Federal Reserve is widely expected to announce plans to taper and eventually halt its $120bn in monthly asset purchases.All this makes for a volatile mix, as was illustrated by third-quarter GDP, published on October 28th. The economy grew at an annual rate of 2% compared with the previous three months. That, depending on your frame of reference, was either most impressive or very disappointing. Compared with forecasts made in late 2020, growth during the first three quarters of the year has been more than a third faster than expected. But forecasts had zoomed higher since: at one point economists projected third-quarter growth would be more than three times as fast as it actually was.The fourth quarter may bring a bounce-back. Consumer confidence fell precipitously as the summer wore on and the Delta variant took hold. Now Delta is receding and confidence rebounding, which bodes well for shopping and travelling during the holiday season. Supply chains, though still far from normal, may be improving a bit. Analysts at Bank of America reckon that growth could pick up to an annual rate of 6% over the final three months of the year. Any near-term rebound aside, however, how much longer before the recovery runs out of puff? There are three big reasons to worry that it might be nearing its end: a tight labour market, stubbornly high inflation and a rapid unwinding of stimulus. Yet there is also cause to think that each will not undercut the recovery, and that growth momentum may remain strong. Help wantedEasily the most positive economic development of the past year has been the remarkable decline in unemployment. After a recession the labour market usually takes years to heal. Things looked grim at the height of the pandemic, when unemployment soared to 14.7%, the highest rate since the Depression. Yet the return to work, albeit not to offices, has been astonishingly strong. The unemployment rate, 4.8% in September, is low for this point in a recovery (see chart 1).Indeed, the focus now is on how hard it is for companies to hire workers, especially for blue-collar jobs. That might suggest that the recovery is nearing an end, with the economy straining at its limits. Yet some slack remains. About 3m people, 2% of the pre-pandemic labour force, have still to return to work. Some may have retired early, but many are on the sidelines, concerned about child-care and catching covid-19. As those concerns diminish—the return to school has gone well so far and vaccines are proving effective against severe illness—they are, little by little, resuming work.The surge in inflation is another big worry about the recovery. The personal consumption-expenditure price index, the Fed’s preferred gauge, increased by 4.4% in September from a year earlier, the highest in more than three decades. For much of the past year officials at the Fed and many other economists, too, have argued that inflation is only transitory, an outgrowth of gummed-up supply chains. The tight job market, however, complicates the picture. Wages rose by 1.5% in the third quarter, compared with the second, the biggest gain in at least two decades. Welcome as it is to see nurses and waiters get pay bumps, the fear is that rising wages will lead to yet more upward pressure on prices and ultimately to a dreaded wage-price spiral, as experienced in the 1970s. But conditions are very different. Far fewer workers are represented by unions today, and far fewer contracts have cost-of-living adjustments baked into them. That should weaken the link between inflation and pay. The Fed may have been unduly optimistic in thinking that price pressures would quickly subside, but its logic remains persuasive. As supply chains slowly return to normal and as people re-enter the labour force, inflation should ebb without the need for forceful interest-rate rises.Related to that is the final big concern: the withdrawal of stimulus. With the fiscal deficit having hit 15% of GDP in 2020, the highest level since the second world war, the comedown was bound to be painful. The shift to smaller deficits will deduct about 2.5 percentage points from growth over the next year, easily the biggest fiscal drag of the past two decades, according to the Hutchins Centre on Fiscal and Monetary Policy in Washington (see chart 2). The monetary cliff will not be as steep, but it now looms over the economy. The next question after tapering is when the Fed will raise interest rates. Goldman Sachs, a bank, thinks the first rate rise could come as soon as July. Early daysAn end to stimulus would usually augur poorly for growth. Yet other factors could insulate the economy. The consumption of goods is about 15% higher than its trend level, partly because people have spent much less money than usual on holidays and restaurants and much more on sofas, exercise bikes and stay-at-home essentials. But with the pandemic now apparently petering out, people are buying experiences again—a fillip for growth, given that services account for nearly 80% of output (see chart 3).Even without any more stimulus cheques, there is plenty of momentum for spending. Jay Bryson of Wells Fargo, another bank, says that the strength of household balance-sheets should be the starting point in any analysis of America’s growth prospects. Personal debt obligations as a share of disposable income are near their lowest on record. Business inventories are also near all-time lows, implying substantial need for restocking, if only companies can get the goods they need on time (see chart 4). “Knowing what I know today, I would say that we are still in the early stages of this recovery,” says Mr Bryson.Mr Yeager has reached a similar conclusion. As retailers rush to restock their shelves, Hub’s order books are filling up fast. It has even had to turn some prospective clients away. “We think the strength really does carry through to the end of next year and potentially beyond,” he says. More

The $1.75 trillion Build Back Better framework, issued Thursday by the White House, would expand health-care access and make care more affordable.
It would do so in three big ways: by expanding Affordable Care Act subsidies, adding Medicare hearing coverage and improving access to homecare for seniors and disabled Americans.
The legislation isn’t necessarily final. Democrats cut some health measures, like paid family and medical leave and an ability to negotiate prescription drug prices.

President Joe Biden on Oct. 29, 2021 in Rome, Italy.
Antonio Masiello | Getty Images News | Getty Images

Insurance subsidies

The measure would expand subsidies for health insurance in two ways, according to Cynthia Cox, director of the Affordable Care Act program at the Kaiser Family Foundation.

(The federal assistance helps reduce health insurance premiums and other costs for private marketplace plans.)
It would preserve a temporary expansion of the subsidies enacted earlier this year by the American Rescue Plan and expand access to low earners who don’t qualify for Medicaid in some states.
Together, the reforms would cost $130 billion, the White House estimates. The provisions would last through 2025. (An earlier version passed by the House would have made them permanent.)

“If it’s passed, then for the next few years almost every American citizen will have access to affordable coverage,” Cox said.
The American Rescue Plan, a pandemic relief law passed in March, made more people eligible for premium tax credits and boosted assistance for those who already qualified.
For example, prior to the pandemic law, Americans didn’t qualify for aid if their income was more than 400% of the federal poverty level (about $51,000 for a single individual or $105,000 for a family of four). New rules got rid of the upper income threshold; they also capped premiums at 8.5% of household income for a benchmark health plan.
The White House estimates extending these reforms would reduce premiums for 9 million Americans, by an average $600 a year per person, and 3 million people who’d otherwise be uninsured would gain insurance.

Additionally, in 12 states that haven’t adopted an expansion of Medicaid under the Affordable Care Act, some low earners currently don’t qualify for Medicaid or marketplace subsidies, making coverage largely unaffordable.
The Build Back Better framework would extend subsidies (premium tax credits) to those in this so-called coverage gap. About 4 million uninsured people in these states would be eligible for such assistance, the White House estimates.
“[They’d] qualify for very significant subsidies on the ACA markets that would essentially make their coverage free,” Cox said.

Home care

The legislation would invest $150 billion in home and community-based care for seniors and Americans with disabilities.
Such care is generally designed to let people stay in their home instead of move to a facility. It may include services like skilled nursing, personal care, adult daycare and home-delivered meal programs, according to the Centers for Medicare and Medicaid Services.
Medicaid is largest payer of home and community-based services in the U.S., according to Jennifer Sullivan, director of health and housing integration at the Center on Budget and Policy Priorities.

This is absolutely one of the most significant investments in home and community-based services we’ve seen in recent memory.

Jennifer Sullivan
director of health and housing integration at the Center on Budget and Policy Priorities

The federal funds would help strengthen the Medicaid program; ease a care backlog (the wait list is estimated to be more than 800,000 people); and improve working conditions for home-care workers, according to the White House.
“This is absolutely one of the most significant investments in home and community-based services we’ve seen in recent memory,” Sullivan said.
Currently, the system is tilted toward facilities and institutions, but the legislation would help rebalance the “strained” system, she said.
For example, the framework would offer grants to states to expand access to home and community care and give funding to states that implement an improvement program, among other things, according to a legislative outline issued Thursday by the House Rules Committee. It would also offer funding for hospice and palliative care education and training.

Medicare

Build Back Better would also expand Medicare, the public health plan for seniors, to cover hearing services.
That would add coverage for benefits like hearings aids and visits to an audiologist, according to Juliette Cubanski, deputy director of the program on Medicare policy at the Kaiser Family Foundation.
The policy would cost about $35 billion.
Prior versions of Democrats’ plan had also added dental and vision benefits, which were stripped from the most recent iteration. It also wouldn’t let the federal government negotiate prescription-drug prices for Medicare beneficiaries.

FatCamera | E+ | Getty Images

“There isn’t really much in the way of Medicare left in the bill,” Cubanski said. “What’s left standing is a hearing benefit — which is not insignificant.
“A lot of people on Medicare have trouble hearing, and hearing aids are really expensive,” she added.
Specifically, it would provide coverage of hearing aids under Medicare Part B for individuals with severe or profound hearing loss in one or both ears, once every five years, according to a legislative outline.

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Starbucks coffee shop logo seen at one of their stores.
Stephen Zenner | LightRocket | Getty Images

Check out the companies making headlines in midday trading.
U.S. Steel — Shares of U.S. Steel gained more than 12,9% as the company’s quarterly results beat top and bottom line estimates. U.S. Steel reported adjusted earnings of $5.36 per share, compared with $4.81 per share expected, according to FactSet. Revenue also topped analysts’ estimates.

Starbucks — Shares of the coffee giant fell 6.3% after reporting third-quarter revenue that fell short of analysts’ expectations. China saw same-store sales shrink by 7% in the quarter, missing Starbucks’ prior forecast of flat same-store sales growth.
Amazon — Shares of the e-commerce giant dropped 2.2% after the company badly missed earnings and revenue expectations for the third quarter. The company also issued disappointing sales guidance for the critical holiday period.
Apple — The tech giant’s stock tumbled 1.8% after the company’s quarterly revenue fell short of expectations amid larger-than-expected supply constraints on iPhones, iPads and Macs. It was the first time Apple’s revenues have missed Wall Street estimates since May 2017. Amid Friday’s decline in shares, Microsoft passed Apple to become the world’s most valuable company.
Chevron — Chevron gained 1.2% after the energy company generated the greatest quarterly profit since 2013, boosted by surging oil prices and lower operational costs. The company reported adjusted profit of $2.96 per share on revenue of $44.71 billion. Analysts expected Chevron to earn $2.21 per share on sales of $40.52 billion, according to Refinitiv.
Newell Brands — Newell Brands shares rose 5.1% after the consumer products company reported better-than-expected earnings results. The company reported profit of 54 cents per share in the third quarter, 4 cents above estimates. Newell also raised its full-year outlook.

Gilead Sciences — Shares of the pharmaceutical company ticked 3.7% lower in midday trading despite beating on the top and bottom lines of its quarterly results. Gilead saw strong demand for its antiviral Covid-19 treatment remdesivir, but it also said full-year sales of its non-Covid drugs won’t reach earlier estimates.
Western Digital — Western Digital shares fell 8.7% despite the computer company beating analysts’ earnings expectations. The company provided weaker-than-expected current-quarter guidance and said it was being hit by supply chain issues.
Church & Dwight — Church & Dwight shares rose 2.4% after an earnings beat. The consumer products company, parent to brands like Arm & Hammer and OxiClean, reported per-share earnings of 80 cents versus the 71 cents per share Refinitiv consensus.
AbbVie — The pharmaceutical stock rose 4.6% after AbbVie beat estimates on the top and bottom lines for its third quarter. The company reported $3.33 in adjusted earnings per share on $14.34 billion of revenue, powered by a roughly 15% increase in its immunology segment. Analysts surveyed by Refinitiv expected $3.22 earnings per share on $14.32 billion of revenue.
— CNBC’s Jesse Pound, Yun Li and Maggie Fitzgerald contributed reporting.

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Hedge funds and other clients began receiving the reports Thursday via the investment bank’s Marquee digital platform, according to an email obtained by CNBC.
The first report available to Goldman clients was an overview of decentralized finance (DeFi) protocols on the Ethereum network.
The investment bank has said its Marquee platform has 50,000 active monthly users.

Rafael Henrique | SOPA Images | LightRocket | Getty Images

Goldman Sachs has stared giving its institutional trading clients research reports from crypto news and data firm The Block.
Hedge funds and other clients began receiving the reports Thursday via the investment bank’s Marquee digital platform, according to an email obtained by CNBC. The first report available to Goldman clients was an overview of decentralized finance (DeFi) protocols on the Ethereum network.

“In an effort to provide relevant digital assets content and research, GS Digital Assets is now providing exclusive access to select reports from The Block Research,” the bank said. “While these typically require a paid subscription, clients can access them for free with a Marquee account.”
The move by Goldman, a premier global investment bank, is a sign of increased demand from large investors for information and analysis about cryptocurrencies and related fields like DeFi. Bank of America and Morgan Stanley have each announced new crypto research desks this year, while Goldman revamped its digital assets division last year and began trading bitcoin-linked instruments in May.
A Goldman spokesperson confirmed the authenticity of the client email and declined to comment further.
The investment bank has said that its Marquee platform, which allows clients to access data and analytics without using traditional methods like calling salespeople, has 50,000 active monthly users.
The dizzying ascent of bitcoin and other cryptocurrencies in recent years has been accompanied by the rise of new news outlets like The Block and CoinDesk and expanded hiring by established outlets including Bloomberg News.
“Large financial institutions and technology companies have leveraged The Block’s suite of research and data services to more deeply understand the fast-growing market for digital assets for some time now,” The Block CEO Michael McCaffrey said in an email.

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The Build Back Better Act would subject cryptocurrency transactions to wash sale rules, anti-abuse rules that currently apply to stocks and bonds, starting in 2022.
The near-final legislative draft, issued Thursday after the White House unveiled a policy framework, may still change and its success isn’t guaranteed.
The wash sale measure would eliminate a dual benefit crypto investors currently get.

Photo by Mike Kline (notkalvin) | Moment | Getty Images

Proposed legislation unveiled Thursday as part of Democrats’ $1.75 trillion social and climate spending plan would close a tax loophole for cryptocurrency investors.
The Build Back Better Act would subject crypto transactions to “wash sale” rules, an anti-abuse measure that currently applies to stocks, bonds and other securities, according to an outline published by the House Rules Committee.

As a result, bitcoin, ethereum, dogecoin and other crypto would be subject to the rules. They prevent investors from claiming tax benefits from an investment loss then quickly buying back that same asset, effectively retaining ownership.
The new proposal would apply after Dec. 31.

The Rules Committee proposed its near-final legislative draft after the White House unveiled a policy framework Thursday morning, the result of months of negotiations among moderate and progressive Democrats.
The legislation may still evolve and its success isn’t guaranteed. Democrats need nearly full party support in both chambers for the measure to pass, given unified Republican opposition. Key holdouts haven’t publicly committed to voting for it.
A House Ways and Means Committee tax proposal last month also sought to subject digital currencies to wash sales.

The IRS treats crypto as property, not as a security, which is how the asset class escapes wash sale rules under present law.
More from Personal Finance:Here’s how Biden’s Build Back Better framework would tax the richThe enhanced child tax credit will continue for 1 more year, per Democrat planPaid leave advocates slam exclusion of policy from social spending bill
Crypto investors reap two benefits as a result: They can sell crypto for a loss and claim a tax benefit. (They can use the loss to reduce or eliminate capital-gains taxes owed on winning investments in their portfolio.) Then, they can quickly buy back the crypto they sold to capture any rebound in price — which isn’t far-fetched given crypto’s volatility.
By comparison, stock investors aren’t allowed to buy an identical or similar security within 30 days before or 30 days after a sale without triggering penalties.
The measure is among a series of tax reforms that would raise almost $2 trillion for climate investments and a significant widening of the U.S. social safety net, including universal preschool, health-care expansions and financial assistance for child care.

Subjecting crypto and other assets to wash sale rules would raise $16.8 billion over a decade, according to estimates published last month by the Joint Committee on Taxation.
If crypto is ultimately subject to wash-sale rules, investors may be able to speedily establish positions in a different coin without getting tripped up.
Cryptocurrencies are dissimilar enough that selling bitcoin and then quickly buying etherum, for example, likely wouldn’t violate the rules, according to Ivory Johnson, a certified financial planner and founder of Delancey Wealth Management in Washington, D.C.
“The similarities start and end with the coins being exchanged on a blockchain,” Johnson has told CNBC. “Using that logic, stocks traded on an exchange, NYSE or otherwise, are not considered one and the same either.”

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