Raking it in

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Nike rakes in $3 billion after Colin Kaepernick calls foul on shoe [Denver Post]

We have written about the Colin Kaepernick / Nike saga before. It was the headliner for our inaugural piece that discussed how winning in a widening gyre requires politicians, companies and people to control their own cartoon – before someone else does it for them. Nike did it, and they won.

Some few months later, they’re back in the Zeitgeist, with coverage language powerfully connected to all other social and financial news. I think you can make a meta-game argument that their tactic this go around was a bit transparent. Maybe even long-term counterproductive, given some internal inconsistencies in the cartoon they’re created. What you can’t do, I think, is argue that it wasn’t effective in promoting and controlling that same, highly effective, polarizing cartoon today.

One of the easiest ways to spot a well-controlled cartoon is how it auto-tunes others’ perceptions to that narrative. The Denver Post gives us exactly that:

Remember, this is at the top of our Zeitgeist query. This language is making its way across financial media. Whatever we think about the reality or fairness of Nike’s decision or Kaepernick’s belief here, the narrative about Nike is that its wokeapitalism strategy is working. Outlets are attributing market price changes over a couple days to a specific event. Outlets are calling day-to-day volatility in total market cap ‘raking it in’, which says about as much as it does for financial literacy as it does the strength of the cartoon. Articles are even intimating that Nike is winning from the popularity of protest actions (and they may not be wrong):

The simplest takeaway from our first brief on this topic was that controlling your cartoon is an indispensable corporate tool in the widening gyre. The takeaway from this one is probably more important: there is now a strong narrative that controlling your cartoon works. A cartoon about cartoons now sits at the top of the Zeitgeist.

Don’t be surprised, friends. The world we live in is now the kind of world in which Jar Jar Binks is trending on social media because…well, because everyone wanted to know why Jar Jar Binks was trending on social media.

Alas, I fear it’s Jar Jars all the way down. Brace yourself for more of this.

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The Daily Zeitgeist

The Common Knowledge of Inflation

By Ben Hunt | October 11, 2019 | 3 Comments

“Until an hour before the Devil fell, God thought him beautiful in Heaven.”

That’s my fave Arthur Miller quote, from The Crucible.

Our Devil is inflation, and today we think him beautiful in Heaven. You’re not ready for the Fall.

Read more

In Chinese, the Emphasis is on the Second Syllable

By Ben Hunt | October 9, 2019 | 4 Comments

Every US company with Chinese consumer-facing products is going to be forced to make a choice. Do you want to preserve your authenticity and your brand, or do you want to preserve your earnings guidance and share price?

Choose one. You can’t have both.

No one will believe me when I say this, but it’s the truth: this is bigger than tariffs.

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Imagine That.

By Ben Hunt | October 7, 2019 | 6 Comments

They keep us sick, you know.

They keep us hooked on this framing of something-something Republicans vs. Democrats.

The cure? Take back your distance.

You’ll find your local library to be the perfect place to start.

Read more

Fear Factor

By Ben Hunt | October 4, 2019 | 3 Comments

Yeah, yeah … I know that the Deep State is a powerful adversary. Or at least that’s what my MAGA buddies on twitter keep shouting at me.

But I’ll take the Deep State as an enemy any day compared to Steve Schwarzman and the rest of the Private Equity Tong looking to keep their carried interest tax treatment.

I bet Elizabeth Warren feels the same way.

Read more

When the Product is Free, You’re the Product

By Ben Hunt | October 2, 2019 | 3 Comments

This isn’t a note about Facebook. It’s a note about online brokerage fees. And it’s a note about Facebook.

As a consumer … don’t cry for Argentina, and don’t cry for the online brokerages who are taking their commission fees down to zero. As an investor in or an employee of ANY financial services company, on the other hand … maybe it’s time for a good cry and a hard look at your future prospects.

“Yay, free!”

Read more

The Emerging Market Zeitgeist is Broken

By Ben Hunt | September 30, 2019 | 2 Comments

Yes, Deadwood is the greatest HBO series ever. Don’t @ me. I’m not having it. David Milch is MY President.

And while Al Swearengen is the greatest character of that greatest show, the fact is that it’s another character – George Hearst – who drives the narrative arc for the entire series (and movie).

You see, Deadwood is a show about property rights.

So is the Argentina – IMF show.

Read more

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