Operating at the Intersection of Technology and the Capital Markets
Month: April 2022
It is tough to be a fixed income investor in this market. Yields are rising, but in real terms even high yield securities are in negative territory given the inflated CPI environment. Some fixed income portfolio managers are spinning that now is a great time to be a fixed income investor because high yield securities … Continue reading Tough To Be A Fixed Income Investor
Facebook needs to build a bridge between its present product portfolio and a Metaverse-centric future. iOS users began to opt out of iOS app tracking when iOS 14.5 was released in April 2021 as part of Apple's App Tracking Transparency policy. iPhone, iPad, and Apple TV apps are required to request users' permission to track … Continue reading Between Here and The Metaverse
Our view is that the Fed will reset its 2% inflation target approximately one year from now if it wants to salvage the last vestiges of its credibility. While April's CPI number may come down some due to the retreat in the price of oil, we could continue to see core inflation march higher for … Continue reading The Fed Will Reset Its 2% Inflation Target
The effect of increased competition on Netflix (NFLX), manifested itself in a net subscriber loss for the first time in 10 years. The net subscriber loss manifested itself approximately one year later than we thought it would. Competition has never been greater on the streaming content side of the media world with Disney (DIS), Apple … Continue reading Further Media Consolidation Is Coming
Federal Reserve officials tout the U.S. economy's strength as the reason why Fed tightening will not tip the economy into recession. The unemployment rate is the preferred metric of Fed officials who are spinning the tale of a strong economy. We provide an alternative. The Fed is expert at one thing - pulling the wool … Continue reading Fed Spin and U.S. Jobs
A general piece of advice that we have provided to CEOs and CFOs over the years is to make your company's story easy for investors to understand. One can not overstate the importance of simplicity when communicating a company's story to investors. It is important for management teams to succinctly describe: the market opportunity;the customer … Continue reading Make It Easy For Investors
Years of weak management and weak corporate governance are the reasons why Twitter is in the mess it is in. Twitter has been social media's weak sibling since its inception, trailing some combination of Facebook/Instagram and TikTok for over a decade. The fact that Twitter is in the position it is in is hardly a … Continue reading Twitter Made Its Own Bed
10-year Treasury yields sit around 2.72% and will climb higher as the Fed: a.) lifts the Fed Funds Rate and, b.) trims its balance sheet (i.e. quantitative tightening "QT"). There is no scenario in which the Fed executes QT only to have Treasury yields move lower. It is simply a question of supply and demand. … Continue reading Treasury Yields Will Only Move In One Direction
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