2021_08_30 — THEME: Pressing and Money

Michael’s CIO (Check It Out) Report on the week just past — events, sarcasm, and global macro reflections

Credit: Photo and graphics by Michael Ashley
  • Pressing: Running Point Capital was quoted twice in the international press by Reuters last week — woohoo! — regarding why market movements were so positive
  • 3½ out of 5: The S&P 500 rose to a record high on 3 days (Tue, Wed, & Fri); the NASDAQ 100, on 4 days (Mon, Tue, Wed, & Fri)
  • Confidence is the cheapest stimulus: Jobs recovery is the story to shout!!! Also, as long as people believe the Fed has their back, any constructive news will be a market booster💉[pun intended] — nonetheless, supply bottlenecks may be more persistent than expected
  • Pow!: Federal Reserve Chair Jerome Powell said the central bank could taper (reduce) its monthly purchase of $120B of bonds (not a surprise), but that it won’t be in a hurry to raise interest rates (stocks and bonds reacted enthusiastically to this) — the Fed remains pedal to the metal helping the economy
  • Money: Wages and salaries as well as Personal Spending increased for the fifth consecutive month in July — this is great!
  • Mo money: House adopts $3.5 trillion Biden backed budget blueprint
  • Less money: Consumer spending may drop when Federal government enhanced unemployment benefits end because people will have less time and free cash flow to spend — Delta will probably get the headline blame
  • Auto money: Average automobile gasoline usage is higher than 2019 levels even with more electric cars on the road — more driving, less flying
  • Sadly: As mentioned, two weeks ago, the Afghanistan situation could quickly become abysmal, and it has; our hearts go out to the killed and wounded U.S. service men and women as well as hundreds of other lives destroyed during a suicide attack in Kabul
  • All that glitters: Afghanistan sits on $1 to $3 trillion of mineral and gemstone deposits, including possibly the world’s largest lithium reserves — the critical element electric vehicles need — China is interested and will offer economic investment!
  • CitiBiti: Citigroup applied for approval to trade Bitcoin futures
  • Once Bitten: Bitcoin briefly travelled above $50K again; can it hold? Bitcoin production follows a preset path, halving every four years until 2140 when the last of 21 million coins will be mined; unlike commodities — oil, copper, wheat, gold — higher prices don’t lead to increased production.
  • EuroPE: European private equity (PE) firms, which raised $172B of dry powder last year, have snapped up over $80B of U.S. companies this year
  • GooglExit: Google exits Google Health but plans to continue health initiatives — yeah, I’m confused too😏
  • NatGa$: Kinder Morgan (#KMI) extended its decrease of natural gas supplies from the Permian Basin to California following a deadly explosion near Coolidge, AZ — expect prices to increase in California as end of summer temperatures rise
  • Scritti Politti: German publisher Axel Springer pays over $1B for U.S. news website Politico and Forbes plans to go public in a $630MM SPAC deal — FYI: Bezos paid $250MM for the Washington Post in 2013
  • SPACs: Apollo wants to raise a $500MM fund to invest in SPACs
  • In Japan: China, Great Britain, U.S., and Russia lead the Paralympics medal count; Prime Minister Suga’s ally was defeated in Yokohama’s mayoral election; and cabinet approval ratings continue to decline
  • Tosh 2.0: Toshiba Corp has engaged global private equity firms (as potential reformists/bidders) after shareholders ousted its chairman in June (after the company colluded with the Japanese government to pressure foreign investors)🙈
  • Up: South Korea hiked interest rates, the first developed economy to do so in pandemic era — up 0.25% to 0.75%
  • 16: Years to-the-day after Katrina, Ida strikes Louisiana — will disrupt industry and shipping for weeks

“We deliver bespoke investment solutions, innovations, and unique perspectives to you and your family.”

#stockmarket #assetmanagement #assetallocation #investing #investmentmanagement #capitalmarkets #investments #investment #wealthmanagement #riskmanagement #portfoliomanagement #economy #finance #money #economics #familyoffices #macroeconomics #hedgefunds #privateequity #business #trading #management #interestrates #venturecapital #analytics #research #consultants #technology #business #sustainability #volatility #fixedincome #bonds #interestrates #privateequity #venturecapital #PE #VC #RE #AI #illiquid #commodities #crypto #blockchain #covid19 #financialplanning #globaltrade #supplychain #china #investment #familyoffice #UHNWI #wealthmanagment #weekinreview #globalmacro #economy #news #business #investing #yourfamilyofficehere #humor #privateequity #inflation #stocks #markets #equities #stockmarket #assetmanagement #assetallocation #investing #investmentmanagement #capitalmarkets #investments #riskmanagement #macroeconomics #privatecredit #privatedebt #money #munis #municipals #munibonds #municipalbonds #reuters #confidence #SPAC #SPACs #China #Toshiba #Japan #Google

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Michael Ashley Schulman

Michael Ashley Schulman

Avid traveler and art fan, also Partner & Chief Investment Officer @Running Point Capital, a multifamily office and ultra high-net-worth money-management firm