I stole this from TME, which is now paywalled. It’s well worth reading.

(When) is Cathie’s 27% discount placing coming?

Liquidity is an issue, and most people do not think about the liquidity factor until it’s too late, including risk managers.

Two takeaways from Friday’s sessions …

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Archegos Fallout

Charitable work, when done by grassroots volunteers, can be life enhancing for many individuals. When used by the 0.01% to launder their reputations, that’s not always the case. I’m not saying that charitable giving is prima facie evidence for wrong doing, I’m saying that …

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Wrap

I stole this chart from the excellent chartpoint.com. The forced liquidation of Archegos Capital over the weekend seems to have made remarkably little impression on the wider market. The leverage of that thing seems amazing, but I am prepared to put serious money (well, GBP 5) on a …

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But within the constraints imposed by the democratic process

The Copenhagen Consensus is what politicians would do if they carried out a clear-eyed evaluation of the costs and benefits of various policies. The problem is they don’t, because it would not be good politics. If we are looking at …

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Babylon Bee

This is a satire site, in the spirit of The Onion or Private Eye (minus the serious stuff). I signed up for their email list. This was the welcome letter that was auto generated by their mailing list system:

Seth here, CEO of The Babylon Bee. I want …

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Tweets

Cathie Wood is day trading stocks like a monkey on crack..I do not see how this is sustainable for this fund

— 𝕮𝖍𝖎 (@chigrl) March 26, 2021

Wrap

Full blown risk on day. Everything up, except the VIX. Oh, and except some dodgy Chinese frauds, such as $GSX. Oh …

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Note

I am not spending much time on this blog this week and next. I have personal stuff to deal with.

Wrap

The markets seem to be directionless. Gold is up a bit, Comex futures near month now over 1900. Bonds are up: 10Y yield down to 1.581%. Oil …

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Capitalism without Capital

This post explains that companies do not function in the way they used to. They no longer transform savings into productive physical capital. They, in aggregate, are destroyers of physical capital. This trend has been observed for a long time, and conventional accounting measures sometimes fail to …

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Wrap

Risk off, deflationary (except energy).

• Treasuries up,
• Crude up (>5%), practically all non-energy commodities down,
• equities down, NDX more than SPX,
• international equities fairly flat except the Turkish market, which was up strongly (even in USD terms),
• most currencies pretty flat, except NZD, which dropped 1.9% on measures …

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Crumbs

FT Companies section was good today:

• low vol factor was original inspiration for index fund, but has underperformed almost ever since,
• Greensill really looks like a tar pit for Cameron. How can the guy argue he has good judgement?
• Wall Street changes its tune on BTC now it’s …

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