Worthy Insights / Opinion Pieces / Advice
Economist – Faced with a housing crisis, California could further restrict supply 5/10
- “Rent control sounds appealing but is counter-productive.”
Economist – The meaning of the Vision Fund – Leaders 5/12
- “Succeed or fail, Masayoshi Son is changing the world of technology investing.”
- “The fund is the result of a peculiar alliance forged in 2016 between Mr Son and Muhammad bin Salman. Saudi Arabia’s thrusting crown prince handed Mr Son $45bn as part of his attempt to diversify the kingdom’s economy. That great dollop of capital attracted more investors—from Abu Dhabi, Apple and others. Add in SoftBank’s own $28bn of equity, and Mr Son has a war chest of $100bn. That far exceeds the $64bn that all venture capital (VC) funds raised globally in 2016; it is four times the size of the biggest private-equity fund ever raised.”
- “The fund has already spent $30bn, nearly as much as the $33bn raised by the entire American VC industry in 2017. And because about half of its capital is in the form of debt, it is under pressure to make interest payments. This combination of gargantuanism, grandiosity and guaranteed payouts may end up in financial disaster. Indeed, the Vision Fund could mark the giddy top of the tech boom.”
Economist – Will Argentina’s woes spread? – Leaders 5/12
- “Argentina has much in common with yesterday’s emerging markets, but little in common with today’s.”
FT – Apple sows seeds of next market swing – Rana Foroohar 5/13
- “Rapid growth in debt levels is historically the best predictor of a crisis. And this year the corporate bond market has been on a tear, with companies issuing a record $1.7tn last year, and over half a trillion already this year. Even mediocre companies have benefited from easy money. But as the rate environment changes, perhaps more quickly than is imagined, many could be vulnerable.”
WSJ – In a Dollarized World, a Rising Dollar Spells Pain – Greg Ip 5/9
- “Even as U.S. economic influence shrinks, the dollar’s clout in global trade and borrowing is growing, magnifying impact of its rise in value.”
Markets / Economy
Bloomberg – U.S. Tariffs Lead to Record Increase in Washing Machine Prices – Alexandre Tanzi 5/10
Bloomberg Businessweek – No, the U.S Economy Isn’t Overheating – Peter Coy 5/11
- “Some indicators are flashing red, but there’s still a little slack in the system.”
WSJ – Daily Shot: Bloomberg – Relative Hard Currency Reserves 5/14
Real Estate
- “WeWork’s new investment fund aims to buy buildings where the company would become a tenant, raising conflict-of-interest questions.”
Energy
WSJ – Daily Shot: AAA Daily National Average Gasoline Prices 5/13
Finance
FT – Landmark bond sales hit by emerging markets downturn – Kate Allen 5/14
- “Investors who bought some of the riskiest emerging market sovereign bond sales in the past year have been left nursing paper losses as a strengthening dollar has rattled sentiment for emerging markets.”
- “JPMorgan’s emerging markets bond index has lost 5.1% since the start of this year.”
WSJ – Daily Shot: FRED – BOJ Assets YoY Change 5/13
Cryptocurrency / ICOs
howmuch.net – The Biggest Cryptocurrency Hacks and Scams – Raul 5/9
Agriculture
Bloomberg Businessweek – These Shipping Containers Have Farms Inside – Adam Popescu 5/9
Construction
WSJ – Daily Shot: CME Lumber (JuL) 5/11
- “Lumber futures blasted past $600 per 1,000 board feet (mbf).”
Education
South America
Economist – How chavismo makes the taps run dry in Venezuela 5/10
- “Plentiful rains plus Bolivarian socialism equals water shortages.”
WSJ – Venezuela’s Oil Meltdown Is Getting Worse – Spencer Jakab 5/13
- “A rush of creditors trying to seize assets has disrupted Venezuela’s oil exports at a time when they already are plunging.”
Other Interesting Links
Cannabis Benchmarks – Weekly Report 5-11-18
