Tag: HNA

December 14, 2017

Perspective

Visual Capitalist – Animation: Visualizing the ICO Explosion – Jeff Desjardins 12/12

WSJ – Thousands of Fake Comments on Net Neutrality: A WSJ Investigation – Paul Overberg and James V. Grimaldi 12/12

Worthy Insights / Opinion Pieces / Advice

FT – The twin trap for Tesla investors predicting the future – Vitality Katsenelson 12/12

  • “Fear of diluted stock remains, even if the electric carmaker becomes profitable.”

NYT – Quakes and Fires? It’s the Cost of Living That Californians Can’t Stomach – Conor Dougherty 12/12

The Real Deal – The Long View: HNA, Anbang and the myth of low leverage – Konrad Putzier 12/12

  • “New York’s real estate market now grappling with the Chinese debt binge.”

Markets / Economy

CNN – South Korea is going bitcoin crazy – Jake Kwon 12/12

  • “On any given day, South Korea accounts for as much as 20% of all bitcoin trades around the world.”

Real Estate

FT Due Diligence – M&A is the weapon of choice against Amazon for mall operators – 12/12

China

NYT – Artist Flees Beijing After Filming Devastation of Mass Evictions – Austin Ramzy 12/12

December 11, 2017

If you were only to read one thing…

A Wealth of Common Sense: How Does Something Like Bitcoin Happen? – Ben Carlson 12/7

  • The best synopsis of the cryptocurrency I’ve read to date.
  • A taste: “Anyone who tells you they know where this thing is heading, how to value it, where it ends, etc. is nuts. No one has a clue. This is everything you’ve ever read about the markets all wrapped into one — FOMO, supply & demand, human nature, behavioral biases, volatility, booms, busts, uncertainty about the future, etc.”

Perspective

WEF – California is the world’s sixth largest economy. Now is the perfect time for it to step up – Rodrigo Tavares 12/7

WP – Americans are drowning in debt. Here’s where they have it the worst. – Christopher Ingraham 12/8

Worthy Insights / Opinion Pieces / Advice

Be Inspired: The Power of Morning Routine – Jim Kwik 11/26 (YouTube Video)

Bloomberg – HNA Warning Signs Keep Sprouting Up Over Mounting Debt Costs – Judy Chen and Dong Lyu 12/6

Farnam Street – Maker vs. Manager: How Your Schedule Can Make or Break You – Shane Parrish 12/9

Fortune – Inside Elliott Management: How Paul Singer’s Hedge Fund Always Wins – Jen Wieczner 12/7

FT – Self-driving finance could turn into a runaway train – Gillian Tett 12/7

  • “…at a recent financial technology conference at Michigan Law School, regulators and academics estimated that computers are now generating around 50-70% of trading in equity markets, 60% of futures and more than 50% of treasuries. Increasingly, machine learning and artificial intelligence are being added to the mix, to analyze data, trade securities and offer investment advice.”
  • “What we are seeing, in other words, is the rise of self-driving investment vehicles, matching the auto world. But while the sight of driverless cars on the roads has sparked public debate and scrutiny, that has not occurred with self-driving finance.”

FT – $400m for a Leonardo da Vinci. Has the art world gone mad? – Jan Dalley 12/7

Investment News – Stripped of fat commissions, nontraded REIT sales tank – Bruce Kelly 12/7

  • “The Department of Labor’s fiduciary standard, and new securities industry account statement rules for greater clarity in the prices of products, have forced nontraded real estate investment trusts to slice their commissions. Since then, sales of the product have collapsed.”
  • “No fat commissions on REITs means poor sales by brokers.”
  • “REIT managers and broker-dealer executives are likely reluctant to make the connection, at least publicly. But there is no denying that brokers’ appetite for the product disappeared almost overnight once upfront commissions were cut from 7% on an A share to 3% for a T share.”
  • “When REIT sales were booming a few years ago, the product’s pitch was simple: real estate kicks off an income stream of 6% to 7% annually, real estate is an asset class that is not correlated to the stock market, and with interest rates at record lows, investors needed the yield.”
  • “Those conditions haven’t changed dramatically, but nontraded REIT sales have tanked regardless.”
  • InvestmentNewsreported last month that Robert A. Stanger & Co. expects nontraded REIT sales this year to reach just $4.4 billion, about $100 million less than last year and the lowest levels since 2002.”
  • “If the ‘income, diversify and interest rate’ pitch was accurate back in 2012 and 2013, when REIT sales were booming, why isn’t it working today? There is little change in the narrative.”
  • “Interest rates have risen only marginally, and with the stock market roaring, wouldn’t it make sense for a broker to peel off some clients’ gains and invest in commercial real estate, a hard asset not correlated to stocks?”
  • “With brokers no longer getting juicy commissions for REIT sales, they simply don’t appear interested in selling the product.”
  • “Most brokers who still sell nontraded REITs no longer earn the eye-popping 7% commission, the standard rate paid to brokers who sold the product back in 2013, when REIT sales hit their all-time high and brokers sold $19.6 billion of the product.”
  • “The Financial Industry Regulatory Authority Inc. recently put into place a new rule, known as 15-02, that makes pricing of illiquid securities like nontraded REITs more transparent to investors. In the past, client account statements showed illiquid securities like REITs at the value they were bought by the client and did not subtract commissions, which were high.”
  • “‘Now that REITs are getting priced on statements, with Finra 15-02, advisers are having to consider these positions from a total return standpoint, not just income,’ Mr. Rooney said. ‘They are re-evaluating the client’s perception of the product.'”

Markets / Economy

WSJ – Daily Shot: FRED – US Treasury Securities Held by the Federal Reserve 12/8

  • “And so it begins… Quantitative tightening is finally here.”

Real Estate

Business Insider – Here’s where the future of retail is headed in 2018 – Stephanie Pandolph 12/5

  • Industry to top $5.5tn by 2020.

FT – Norway’s oil fund makes first Asian property investment – Richard Milne 12/7

  • “Sovereign wealth fun takes stake in 5 buildings in Tokyo and plans more deals.”

Finance

WSJ – Daily Shot: WP – Bitcoin Rising 12/7

  • “Bitcoin blasts past $15k, $16k, $17k in less than 24 hours.”

WSJ – Bitcoin’s Wildest Rise Yet: 40% in 40 Hours – Paul Vigna and Steven Russolillo 12/7

  • “Bitcoin mania reached new highs Thursday as the price of the digital currency jumped about 40% in 40 hours, smashing through five separate $1,000-barriers and surging past $16,000.”

NYT – Bitcoin’s Price Has Soared. What Comes Next? – Nathaniel Popper 12/8

China

WSJ – Jailed for a Text: China’s Censors Are Spying on Mobile Chat Groups – Eva Dou 12/8

  • If only George Orwell could see the tools at Big Brother’s disposal now.

FT – International investors chase the red dragon – Chris Flood 12/9

November 29, 2017

Worthy Insights / Opinion Pieces / Advice

A Teachable Moment – Rage Against The Fee Machine – Anthony Isola 11/27

CNBC – Chance of US stock market correction now at 70 percent: Vanguard Group – Eric Rosenbaum 11/27

  • “Don’t panic, but there is now a 70% chance of a U.S. stock market correction, according to research conducted by fund giant Vanguard Group. There is always the risk of a correction in stocks, but the Vanguard research shows that the current probability is 30% higher than what has been typical over the past six decades.”
  • “‘It’s about having reasonable expectations,’ Davis (Joe Davis, Vanguard chief economist)  said of the research, which attempts to provide investors with a view of what can occur in the markets in the next five years. ‘Having a 10% negative return in the U.S. market in a calendar year [within a five-year forward period] has happened 40% of the time since 1960. That goes with the territory of being a stock investor.’ He added, ‘It’s unreasonable to expect rates of returns, which exceeded our own bullish forecast from 2010, to continue.'”
  • “In its annual economic and investing outlook published last week, Vanguard told investors to expect no better than 4% to 6% returns from stocks in the next five years, its least bullish outlook since the post-financial crisis recovery began.”
  • “For Vanguard the research is a chance to remind investors that overreaching is no better a solution for a lower-return environment than getting out of the market entirely. Davis worries some investors will hear ‘lower returns’ and view it as a catalyst to become more aggressive as a way to generate the returns they have been used to in recent years.”
  • “As long as an investor is in a financial situation in which they can cope with a single down year, ‘you need to stay invested, because of lower expected returns,’ Davis said. But he added, ‘Don’t become overly aggressive. The next five years will be challenging, and investors need to have their eyes wide open.'”

Economist – A more perfect union – Leaders 11/23

  • “Marriage is more rewarding – but also more upmarket. That is a problem.”

Economist – Teenagers are growing more anxious and depressed 11/23

  • “Could they hold the culprit in their hands?”

FT – Made in China – the world energy market of the future – Nick Butler 11/26

FT – Let the 5G battles begin – Rana Foroohar 11/26

FT – HNA planned 2012 bond deal shows tolerance for expensive debt – Robert Smith 11/26

FT – Venezuela stakes claim as Schrodinger’s cat of the debt world – Jonathan Wheatley 11/27

Pragmatic Capitalism – How to Manage an Asset Price Mania (Like Bitcoin) – Cullen Roche 11/27

  • “One of the main reasons why millions of people jump on investment manias and get crushed by them is because of a simple Fear Of Missing Out. Your co-worker made $10,000 investing in Fidget Spinners and now you feel like you weren’t enough of a dumbass with your dumbass money so you invest your dumbass money in something that is truly for dumbasses and you lose your (dumb) ass.”

The Registry – Murder on the Retail Express? – John McNellis 11/28

Markets / Economy

Fast Company – Cord-cutting is speeding up: Here’s how many people ditched cable TV this quarter 11/15

  • I’m sure this number would be higher if people had heard of YouTube TV…

Tech

Bloomberg Quint – SoftBank Is Said to Seek Uber Stock at $48 Billion Valuation – Eric Newcomer 11/28

Middle East

FT – Saudi crown prince pledges to rid world of Islamist terror – Simeon Kerr 11/26

  • “Saudi Arabia’s crown prince has pledged to rid the world of Islamist terrorism as he launched a military alliance that critics fear will deepen rifts between the kingdom and its arch-rival Iran.”
  • “Prince Mohammed has vowed to restore moderate Islam in the kingdom, where puritanical strains of the faith that encouraged violence have been promoted for decades. The launch of the alliance follows Friday’s jihadist attack on a mosque in Egypt that left more than 300 people dead. ‘The greatest danger of extremist terrorism is in distorting the reputation of our tolerant religion,’ the prince said.”