02/01/2021: Weekly Newsletter
There’s already been so much said about Gamestop it last week that I feel, frankly, oversaturated, and I’m not sure what else I can add to the conversation. However, I don’t want you to think that I’m avoiding the topic either…so here are my thoughts:
Seeing individual investors banding together on an open platform to push back against instiutional hedge funds reaffirms to me the theme that we are smack dab in the middle of a global era of the haves vs the have nots, the rich against the poor. And the inequality divide keeps getting larger. (Seriously! Look at these charts below. It is bonkers.)
I expect this theme will continue to come up again and again. We’ve already seen it manifest several times in recent history—Bernie’s mittens and memes, Occupy Wall Street, vaccine distribution around the world, etc.
2. Regulating the markets can be a very grey area. Is this a group of individual investors acting on a legitimate investment thesis? Or is this market manipulation? The divide between the two is not always so clear as we might like to think.
3. Democratization of finance continues to expand with the enablement of technology. Personally I think this is a great net benefit, but there will definitely be growing pains as well.
A single invididual can express opinions that reach millions and affect markets (ex. Elon Musk) and the rise of individuals as influencers. We’ve seen this in other industries so it’s no suprise the finance industry seems ripe for disruption too.
Individuals now have access to investments may have previously been out of reach before through things like fractional shares and SPACs.
Pod update
Many of you have asked me over the years about crypto and bitcoin. What is it? How do you actually own it? Can I buy a piece of a bitcoin or do I have to save up for an entire one?
I spoke with Aya Kantorovich, Head of Institutional Coverage @ FalconX, to answer all these questions. Listen here or subscribe on Apple podcasts or Spotify podcasts.
Money & Crypto
GameStop’s rise this past week, a helpful overview from WSJ of the issues at place, and hedge funds that held a short position felt the pain
Robinhood raising $1Bn to help cover cash needs and a look into what led to restricted trading on certain stocks like GameStop last week
Bloomberg’s Matt Levine has a great overview into why restricted trading gets enabled and the stock T+2 settlement process
Pew Research Center’s overview of rising inequality between household incomes is truly astounding
Janet Yellen named as Secretary of the Treasury (first woman to hold the position) and Gary Gensler becomes SEC Chair (formerly head of the CFTC)
Some of the largest companies’ sales over the past 12 months
Budweiser not airing a Super Bowl ad for first time in 37 years and instead sending marketing spend to help COVID vaccine efforts
Potential Chevron and Exxon merger…?
WSJ answers some q&a around filing taxes if worked remotely in a different state
Imperfect Foods raises $95M
Tech
The rise of esports vs sports teams and their value
Google plan to remove third party cookies
Visual representation of trends in global temperatures
Etc.
♫ Reminiscing on Whitney Houston’s perfect rendition of the national anthem at the Super Bowl in Tampa 30 years ago (I get chills everytime I listen to it.)
♫ iHeart Radio’s Podcast Award winners
♫ I recently discovered Nicole Byer and Sasheer Zamata’s podcast, Best Friends (I have no idea why it took me so long to discover, but I guess better late than never). It’s a delightful pod where two best friends banter about a wide variety of topics going on in their lives. If you’re looking for something to laugh at but also get a boost in your day, I highly recommend.
Bed Bath & Beyond’s famous coupon: a history
Cicely Tyson, acting legend and civil rights activist, passes away
Cloris Leachmen, acting legend and comedienne, passes away
Disclaimer: All opinions are my own. The content on this site and on the podcast does not constitute financial, legal, accounting, tax, or investment advice.
