My end-of-week morning train WFH reads:
• I Did Not Predict What Is Going on in Privates: They are not low-volatility, low-correlated (to equities) investments. Not marking something doesn’t make it low risk. I’m not going to rehash it here, but please consult prior work for why the ostrich isn’t truly safe from the lion. The same, of course, applies to private credit. The lion doesn’t care if the ostrich is first loss or higher up in the capital structure. (AQR)
• Fundrise’s venture fund, which owns private tech giants like Anthropic and SpaceX, surges as retail investors pile in: The fund’s blockbuster public debut underscores how hungry retail investors are to get a piece of private companies. (Sherwood)
• The Golden Paradox: If gold is a safe haven and inflation hedge, why is it falling hard amid war and inflation fears? (Fisher Investments)
• The economic consequences of the Iran war: The U.S. is likely to get off easy, while others will bear the brunt. (Noahpinion)
• Tesla’s Secret Weapon Is a Giant Metal Box: Elon Musk’s car company is quietly poised to power the AI boom. (The Atlantic)
• They’re Rich but Not Famous—and They’re Suddenly Everywhere: The number of Americans worth eight or even nine figures is up markedly. It’s transforming the U.S. economy. (Wall Street Journal)
• The Humiliation of Tulsi Gabbard: Trump’s director of national intelligence has spent her career arguing against a war with Iran. Now, she’s the public face for one, and her former allies are furious. (Vanity Fair)
• American Aviation Is Near Collapse: Fatal crashes, overstressed controllers, and endless security lines reveal a system teetering on the brink of failure. (The Atlantic) see also This Is Why Flying Is So Awful: If you remember the days of ample leg room, metal silverware and complimentary drinks, you know flying hasn’t always been like this. That’s largely because of deregulation. After the Wall Street crash of 1929 nearly caused the airline industry to collapse, the government stepped in with a comprehensive regulatory system. (New York Times)
• These animals can cause big trouble. Why are states unleashing them by the millions? Introduced species can wreak havoc on native ecosystems. Many states are flooding their waterways with them. (Vox)
• The Obscure Maestro Who Shocked the Tournament’s Defending Champions: Ben McCollum, a coaching guru from Division II, just guided the Iowa Hawkeyes over No. 1 Florida. The result stunned everyone except the coach himself. (Wall Street Journal)
Be sure to check out our Masters in Business next week with Judd Kessler, the Howard Marks Endowed Professor at the Wharton School of the University of Pennsylvania. The winner of the Vernon L. Smith Ascending Scholar Prize,he is the author of is Lucky by Design The Hidden Economics You Need to Get More of What You Want.
US Mortgage Rates Jump Further to Five-Month High of 6.43%
Source: Bloomberg
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