My Market Counsel morning Vegas reads:
• 7 Deadly Stocks: Mega cap tech got destroyed in 2022. Google fell -46%, Amazon -56%, Nvidia -66%, Facebook -77%. An equal-weighted Mag7 portfolio had a 48% drawdown in 2022. You can’t talk about 2023 without looking at 2022. Over the last two years, the Magnificent 7 has barely beaten the S&P 500. (Irrelevant Investor)
• Inflation Is Your Fault: If people are so mad about high prices, why do they keep buying so many expensive things? (The Atlantic) see also Change Your Perspective: Bidding up prices for scarce goods? It is much more accurate to say consumers are not so much suffering from inflation as they are one of the primary causes of inflation. (The Big Picture)
• Biggest Blowout in Bonds Since the 1980s Sparks Everything Rally: Yield plunge spurs advance in stocks, credit, emerging markets Investors see scope for more gains with Fed cuts on horizon. (Bloomberg)
• Did the Meme Stock Revolution Actually Change Anything? Many financial commentators thought that the surge of retail investors participating in the stock market, the most notable of whom boosted “meme stocks” like GameStop, would democratize corporate governance and improve prosocial firm behavior, including the promotion of environmental, social, and governance (ESG) goals. New research finds evidence that the exact opposite took place. (ProMarket)
• What Charlie Munger’s Death Means for Berkshire Hathaway: The big changes at Berkshire will come when Buffett steps down as CEO and after his death.The likely post-Buffett leadership team will be Abel as CEO, Jain overseeing the insurance businesses, and Ted Weschler and Todd Combs, who now run about 10% of Berkshire’s $350 billion equity portfolio, overseeing the entire investment operations. Buffett’s older son, Howard, is expected to be chairman. (Barron’s)
• The Price Is Wrong for Housing: Even if mortgage rates come down, today’s high home prices don’t seem sustainable. (Wall Street Journal)
• Brain Study Suggests Traumatic Memories Are Processed as Present Experience: Traumatic memories had their own neural mechanism, brain scans showed, which may help explain their vivid and intrusive nature. (New York Times)
• Want to help animals? Here’s where to donate your money. These are the most effective charities for reducing animal suffering. (Vox)
• MAGA celebrity comes at a political cost, and evidence is growing: Biden is trying to tie the GOP to Rep. Lauren Boebert, who embodies the perverse political incentives in the modern Republican Party: Greenm and Gaetz as well. (Washington Post)
• The Most Expensive Secret in Baseball History: Shohei Ohtani may soon sign the richest contract in U.S. sports history. No one knows where he will end up—or anything else about him. (Wall Street Journal)
Be sure to check out our Masters in Business interview with Michael Fisch, CEO and co-founder of American Securities, a $27-billion dollar private equity firm that traces its roots to the Sears IPO. The firm uniquely partners with acquisition targets, retaining management for the duration.
Since the 2023 peak, national average Gas prices have been flat or falling for 60 straight days
Source: TKer
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