Epsilon Theory In Brief

 

Daily short-form pieces for those without the time (or attention span) for classic Epsilon Theory notes. Look out for regular features like the subscriber mailbag and guest contributions from within the Epsilon Theory network.

The Mountain and the Molehill

By Rusty Guinn | August 4, 2020 | 4 Comments

There ARE real threats to both the rule of law and our cherished capitalist system today.

But you won’t find either on the streets of Portland or Seattle.

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It’s a Mad, Mad, Mad, Mad Market

By Peter Cecchini | August 3, 2020 | 4 Comments

If you’ve never seen the 1963 comedy “It’s a Mad, Mad, Mad, Mad World”, do yourself a favor and check it out. Phil Silvers and Spencer Tracy and Ethel Merman and Jonathan Winters? Yes, please.

ET contributor Pete Cecchini remembers. Better yet, it’s the perfect foil for figuring out a Mad, Mad, Mad, Mad Market.

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That’s the Thing I’m Sensitive About!

By Rusty Guinn | July 29, 2020 | 1 Comment

Like all abstractions, extremes can be misleading. They can also be revealing. Using extreme times to learn what our leaders and institutions are sensitive about is a critical, unmissable lesson.

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Sideways: Observations on Pain and Privilege

By Ben Hunt | June 29, 2020 | 25 Comments

A sideways moment is when your life becomes a probabilistic exercise, where you are at the mercy of one of two merciless social institutions: hospitals or the police.

My life went sideways a week ago, and here’s what I learned about pain and privilege.

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The Anxiety Algorithm: An interview with Adam Julian Goldstein

By Neville Crawley | June 25, 2020 | 0 Comments

Epsilon Theory contributor Neville Crawley is back with an interview of Adam Julian Goldstein, discussing Adam’s fascinating new work on anxiety. If, like me, you have the entrepreneurial bug (and it is a bug, not a feature), this is a must read!

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The Portnoy Top

By Peter Cecchini | June 15, 2020 | 3 Comments

Written during last week’s sell-off, ET Contributor Peter Cecchini coins a phrase – The Portnoy Top.

What do you get when you combine Barstool Sports and Printer Goes Brrr?

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No Accident

By Rusty Guinn | June 3, 2020 | 20 Comments

Our bi-modal political environment doesn’t just impact our politics. It shapes our social and cultural narratives and channels our responses to every event.

Yet Americans are large. They contain multitudes. And they can reject the political archetypes into which narratives seek to channel them. If this is to be our finest hour, then they must.

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The End of the Beginning

By Demonetized | May 20, 2020 | 6 Comments

ET contributor Demonetized is back, grappling with some investment themes here at the end of the beginning.

The skinny: deep value is at best a tactical trade. At best.

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No Free Lunches

By Peter Cecchini | May 19, 2020 | 4 Comments

ET Contributor Pete Cecchini looks at the monetary and fiscal policy stimulus coming out of Washington and sees a staggering price to pay in lost real growth and massive institutional corruption.

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Too Connected to Fail

By Rusty Guinn | May 4, 2020 | 11 Comments

We have written that one of the major social changes occurring at present is the transformation of capital markets into public utilities.

The COVID-19 pandemic and policy response have accelerated that transformation. It is now the water in which we swim.

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One for the Road

By Rusty Guinn | April 18, 2020 | 5 Comments

There was no greater sin between 2009 and 2020 than enduring a ‘constant drag on returns’. This is the meme of Yay, Efficiency!, and it permeates every layer of our economy and markets.

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Exigent Circumstances

By Peter Cecchini | April 16, 2020 | 9 Comments

ET contributor Peter Cecchini makes a strong case that the Fed is playing a dangerous game with its constant use of the “exigent circumstances” exception to Section 14 of the Federal Reserve Act.

Does the alphabet soup of new facilities and SPVs established by the Fed in recent weeks amount to an illegal taking of assets? It’s a reasonable question.

Even more reasonable: if not here, where do you draw the line?

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Frenemies

By Peter Cecchini | April 7, 2020 | 9 Comments

The oil narrative is not as it seems.

The White House and others assume the Saudis and Russians are at odds. Don’t be so sure. Their interests are aligned around disabling U.S. production. Period.

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Our Finest Hour

By Ben Hunt | April 2, 2020 | 15 Comments

There is no country in the world that mobilizes for war more effectively than the United States. And I know you won’t believe me, but I tell you it is true:

This will be #OurFinestHour.

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Until Further Notice

By Rusty Guinn | March 31, 2020 | 10 Comments

We have been asked to discuss our views about the CARES Act. In order to facilitate future such requests, we have provided what we hope to be a helpful rubric.

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When the Story Bends

By Rusty Guinn | March 24, 2020 | 10 Comments

Saying that “America needs to reopen for business” isn’t the same thing as doing what we need to reopen America for business. Words matter, but actions matter more.

Let’s do the right things. Now.

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Getting PPE to Healthcare Workers and First Responders

By Ben Hunt | March 23, 2020 | 3 Comments

This is our personal effort to help identify *need*, *sources*, and *money* for personal protective equipment distributions to healthcare workers and first responders.

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The Non-Linearity of Need, Pt. 2

By Rusty Guinn | March 19, 2020 | 14 Comments

Let’s make this Our Finest Hour. From the bottom up.

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Our Escape Story

By Rusty Guinn | March 18, 2020 | 10 Comments

When people stop asking “How much worse is this going to get” and start asking “How much longer is this going to last”, things really start changing.

But we can change that, too.

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Margin Call

By Rusty Guinn | March 16, 2020 | 7 Comments

Levering up a portfolio based on a model that we know cannot act as a representation of the state of the world is perilous.

Doing the same with a country is far, far worse.

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