The Leyendecker View: Are PE Investors “Free Market”?«Back


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The Leyendecker View: June 12, 2020


All seemed lost in the American Revolutionary war, until it wasn’t.
All seemed lost in the American Civil War, until it wasn’t.
All seemed lost at Pearl Harbor, until it wasn’t.
Fear not, America will rise from these difficult times a greater nation.

- Anonymous
 

SOME GOOD NEWS

Did you find the $1MM treasure
Hidden away in the Rocky Mountains for a decade?
 
Historic agreement to help pollinator sustainability
Energy and transportation companies collaborate to provide butterfly habitats.
 
A young founder cashes out
And puts $3.35B into only two stocks.
 
OUR FINANCE WORLD
 
Private equity investors are totally “free market”
Guess again.
 
What could be behind the crazy market rally?
Sports bettors need something to do.
 
The case for alternative investments
It’s opportune timing for deals and diversification.
 
PE portfolio bankruptcies rising
But not all hope is lost.
 
TECHNOLOGY
 
Grubhub acquired for $7B+
Food delivery must be at peak usage AND value now.
 
Amazon in the hot seat
EU not happy about treatment of third-party sellers.
 
The Instacart ZOOM
More investing euphoria in essential industries.

CORONAVIRUS
 
Lockdown lunacy
A blogger dissects tons of research to conclude that…
 
When will consumers feel safe?
Living in COVID’s shadow.
 
The road to recovery for America’s cities
Cities report their post-COVID challenges.
 
THE ECONOMIC CRUSH
 
Over 100,000 small businesses have permanently closed
And more than one in five businessowners say they’re on the brink.
 
New apartment leases in Manhattan down 62%
Are people going to abandon high-density cities?

Retirement plans being retired
As COVID hits small businessowners.

Here comes the next wave of layoffs
First came hospitality and services, now layoffs are broadening.
 
THE ECONOMIC VIEW
 
BLS misclassification error made unemployment rate look better
One more reason to put your trust in government.
 
The Fed thinks unemployment will hit 4.1% in 2022
That will be something to see, for sure.
 
Goldman suggests ground is fertile for negative interest rates
What’s our strategy if that doesn’t work?
 
REBUILDING AMERICA
 
Mark Zuckerberg’s gift to the Heartland
WFH means people can leave the very expensive cities.
 
Investors are bullish on the economic recovery
Institutional Investor digs in.
 
Americans are jumping back on planes
Who doesn’t need a vacation?
 
THE CHINA SYNDROME
 
Indonesia opening its doors to US companies
China’s loss could be their gain.
 
Rooting out Chinese propaganda
Beijing attempts its mind control in Hong Kong.
 
Will coronavirus reshape the world order in China’s favor?
Four experts debate our geopolitical future.
 
THE NEXT NORMAL
 
IPO road shows have gone virtual
And may never go back.
 
Livestream shopping—ecommerce’s future
China’s 34-year-old star is bigger than “Game of Thrones.”
 
60% of Americans think recovery will take five years
With periods of widespread unemployment or depression.
 
MAKING A BETTER YOU
 
Exercise self-control
By not exercising it at all.
 
The value of skepticism
From the archives: Carl Sagan opines on science and pseudoscience.
 
The Dunning-Kruger effect
Why incompetent people think they’re superior.
 
VIDEO OF THE WEEK
 
The benefits of cold water
Take a chill pill.
 
HOW ABOUT A BREAK
 
Real live “Blade Runner”
Dubai’s police hoverbikes not ready for prime time.
 
Iguanas, chicken of the trees
Coming to a restaurant near you?
 
A 3,000-year-old innovation mystery in Peru
Solved with the help of satellites from space.
 
FROM THE HEADHUNTER’S KITCHEN
 
Classic ceviche
Goes great with blue corn chips and a glass of white sangria
 
THOUGHTS FROM DOUG
 
Why is Juneteenth not a national holiday? Did you know this celebration of the Emancipation Proclamation actually started in Texas?
 
The expression “science is real” has taken a beating during the COVID crisis.
 
Why was it a surprise that states didn’t experience more job losses once they started opening their economies? Why wouldn’t “opening the economy” create jobs?
 
By totally eliminating price discovery and inflating securities markets, central banks have bailed out bad managers of risk. This probably means that, in the last couple of months, smart investors have lost money while dumb investors have made it.  
 
My 17-year-old nephew is having a lot of fun picking stocks in his Robinhood account.
 
Bob Farrell’s rule #8 of investing: “Bear markets have three stages – sharp down, reflexive rebound and a drawn-out fundamental downtrend.”
 
Maybe I’m too sensitive, or maybe I’m too insensitive, but it’s starting to feel like we aren’t too far away from mob rule. Welcome to the ugly side of social media.
 
Given how much “fun” we’ve already had this year, a major hurricane will probably make landfall later this summer.
 
Three tasty cheeseburgers and a large Diet Coke at McDonald’s will set you back around $4.25. In case you were wondering.
 
IN CASE YOU MISSED IT
 
The Leyendecker View: Options for the Next Stimulus Bill
June 5, 2020
 
The Leyendecker View: The Hottest IPOs
May 29, 2020
 
 
 

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