The Zeitgeist – 5.1.2019

7+

Every morning, we run the Narrative Machine on the past 24 hours worth of financial media to find the most on-narrative (i.e. interconnected and central) stories in financial media. It’s not a list of best articles or articles we think are most interesting … often far from it.

But for whatever reason these are articles that are representative of some sort of chord that has been struck in Narrative-world.


May 1, 2019 Narrative Map – US Equities

Source: Quid, Epsilon Theory

Americans are spending on their dogs and cats like children. That’s a boon for Chewy [CNN]

Americans’ obsession with their pets is lifting Chewy, the online pet food and supply company.Chewy announced on Monday that it will go public. It chose a good time for its IPO: Chewy pulled in $3.5 billion in 2018, around a 65% increase from the year prior.

The Pets.com IPO in February, 2000 came to symbolize the tech bubble, and for good reason. This was a bullshit company to take public … negative gross margins, total sales of $7 million (that is not a typo) in its 12 months of operation. By November, 2000 the company was in liquidation.

Lots of people have forgotten that Jeff Bezos built Pets.com and was responsible for pushing this abomination onto the public.

I haven’t.


Wealthy California couple expected to plead guilty in college admissions scandal [USA Today]

Bruce and Davina Isackson … who have apologized publicly for their actions, have accepted deals with prosecutors pleading guilty to conspiracy to commit mail fraud and honest services mail fraud. Bruce Isackson, the head of a Bay-area real estate firm called WP Investments, has also agreed to plead guilty to money laundering and conspiracy to defraud the U.S. for deducting the payments from their taxes as charitable contributions. 

Bruce and Davina Isackson love their children. Bruce and Davina Isackson would do anything for their children. Bruce and Davina Isackson get the joke. Bruce and Davina Isackson are rich.

The problem for Bruce and Davina Isackson is that they aren’t rich enough.


Equifax survey reveals saving is a challenge for most consumers [Press Release]

Equifax Inc. (NYSE: EFX), a global data, analytics and technology company, today released the results of its annual Financial Literacy Survey, in which nearly half of surveyed adults indicated they do not have enough savings to cover at least three months of living expenses. This percentage has increased 35 percent from 2018 among respondents ages 45 to 59 – with six in 10 consumers in this age group responding they lack an emergency fund.

In addition to lacking an emergency fund and enough savings to cover at least three months of living expenses, more than half of surveyed consumers (56 percent) said they don’t have any money left over at the end of the month. And while slightly more than 62 percent of surveyed consumers have created a budget over the past year, 35 percent of surveyed consumers admitted they are not saving for retirement – up from 29 percent last year.


Texas company Tellinga turns your life into a comic [San Antonio Express-News]

Combining the fun of a comic strip with the anticipation of waiting for something special to arrive in the mail, Tellinga (as in “telling a…”) bills itself as a way to turn personal stories into unique gifts.

I actually think this looks like a cute product. But here is where we are in 2019 business plans … snail-mail delivery is now a feature rather than a bug, as it creates “the anticipation of waiting for something special to arrive in the mail.”

Tom Sawyer was a piker.


Technisys raises $50 million to continue empowering banks with disruptive tech [Press Release]

It’s hard to win Buzzword Bingo in a 10-word headline, but here you go.


Warren Buffett gets in the middle of oil bidding war [CNN]

Occidental said Berkshire Hathaway would receive 100,000 shares of preferred stock that pay a sizable dividend of 8% a year [on $10 billion]. That compares with a roughly 5% dividend on Occidental’s common stock.

Existing Occidental shareholders could have their positions watered down because Berkshire would receive warrants to purchase up to 80 million shares of common stock. The warrants have an exercise price of $62.50, compared with the current price of about $59.

I think I saw that the preferreds can’t be bought back by Oxy for something like 10 years. LOL

What is shadow banking? THIS.

Not that there’s anything wrong with it. Hey, this is Uncle Warren’s true face, and I’m a fan of authenticity in all its forms and ways. But if you think poorly of a guy like, say, Ken Griffin because you think Citadel was “bailed out by the US taxpayer”, and you don’t think EXACTLY the same about Warren Buffett and Berkshire Hathaway … then you’ve been played.


7+

To receive a free full-text email of The Zeitgeist whenever we publish to the website, please sign up here. You'll get two or three of these emails every week, and your email will not be shared with anyone. Ever. It's our effort to spread the word about what we're doing, and allow you to read more Epsilon Theory!

1
Leave a Reply

Please Login to comment
  Subscribe  
newest oldest
Notify of
Peter Perez
Member
Peter Perez

Uncle Warren…the ultimate wolf in sheep’s clothing! I own the stock despite loathing the man. What does that say about me other than I have pee-ompted myself out to the system…

Btw, my generation…not satisfied in having enfeebled our children, Opra-fied style, we have to now rapidly move to enfeeble our pets (same allergies, designer foods, pet “esteem”, blah-blah=blah)! Wtf?!

0

The Daily Zeitgeist

Narrative is not a Disease. Narrative is Us.

By Ben Hunt | September 16, 2019 | 3 Comments

Robert Shiller’s new book, “Narrative Economics”, will be out soon, and the publicity effort is kicking into gear. I am SO HAPPY that the rigorous study of narratives is finally being taken seriously, and grateful to Shiller for making that happen.

I am also SO DEPRESSED about how Shiller’s central metaphor, that narrative = infectious disease, will be used against us. Because the “cure” is the Nudge.

Read more

Sparks, Arcs and Trademarks

By Rusty Guinn | September 13, 2019 | 0 Comments

I’m not sure if electric buses are really a national security risk. Even if they are, I’m not sure characterizing them that way is really an escalation of the trade war into existential rhetoric land.

But it’s worth watching.

Read more

When Meta-Analysis Goes Meta

By Rusty Guinn | September 9, 2019 | 4 Comments

What does it mean when it becomes common knowledge that other investors are focused on evaluating common knowledge?

Read more

I’ve Got a Secret

By Ben Hunt | September 6, 2019 | 8 Comments

Is there a bubble in passive investing? Honestly, I’m not even sure what that question is asking.

I DO think there’s a bubble in markets today – a behavioral bubble I’ll call ABB.

Always. Be. Buying.

And the Common Knowledge around passive investing is what blows this bubble. That’s MY secret.

Read more

The Industrially Necessary Egg

By Ben Hunt | September 5, 2019 | 1 Comment

In modern farming and in modern investing, we have become prisoners of the monoculture. It’s efficient. It’s necessary for a mass society of ever-increasing Desire.

But here’s the thing …

In the investment monoculture, you’re not the farmer.

Read more

Gell-Mann Gravity

By Rusty Guinn | September 3, 2019 | 0 Comments

It’s the Monday Zeitgeist, including all known lanthanides and actinides.

Read more

DISCLOSURES

This commentary is being provided to you as general information only and should not be taken as investment advice. The opinions expressed in these materials represent the personal views of the author(s). It is not investment research or a research recommendation, as it does not constitute substantive research or analysis. Any action that you take as a result of information contained in this document is ultimately your responsibility. Epsilon Theory will not accept liability for any loss or damage, including without limitation to any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Consult your investment advisor before making any investment decisions. It must be noted, that no one can accurately predict the future of the market with certainty or guarantee future investment performance. Past performance is not a guarantee of future results.

Statements in this communication are forward-looking statements. The forward-looking statements and other views expressed herein are as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and there is no guarantee that any predictions will come to pass. The views expressed herein are subject to change at any time, due to numerous market and other factors. Epsilon Theory disclaims any obligation to update publicly or revise any forward-looking statements or views expressed herein. This information is neither an offer to sell nor a solicitation of any offer to buy any securities. This commentary has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Epsilon Theory recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.