Duration risk in one chart. $1 million invested in this Apple AAPL bond is now worth $600k, duration risk is on stage here.
Now think of all those mortgage-backed securities on bank balance sheets... Source: Lawrence McDonald, Bloomberg
Warren Buffett's Berkshire Hathaway reported $1 trillion of assets for the first time last quarter
That's roughly triple the assets of Apple, 10 times Tesla's figure, and 20 times Nvidia's total. Berkshire's assets have ballooned 33,000-fold under Buffett, from under $30 million when he started. Source: business insider
A nice tweet by Rich Kleinbauer
In February 2020, 70% of private sector employee schemes were allocated to long-term debt (mostly UK Gilts). This investment is down -53% since then, i.e a MINUS 37% contribution to performance...
Jackson Hole might NOT be the key market driver
Indeed, nvidia ($NVDA) results tonight could be THE main market event this week given the weight of Nvidia in the main #us #equity indices (4.6% of Nasdaq 100 and 3.1% of S&P 500) and the level of market expectations in terms of top-line growth (68% QoQ) and gross margins (+400bps improvement). Moreover, the Street (and algos) will count the number of times that Jensen says "AI" during the conf call this evening... Source: Markets Mayhem
Investing requires patience. Over the past 15 years, investors in these stocks navigated significant drawdowns before reaping substantial gains
The same principle might apply to bitcoin and some cryptocurrencies as well. Source: ycharts, Beth Kindig
Who are the largest shareholders in Apple?
The major shareholders of Apple are primarily institutional investors, with individuals holding only a small stake. Source: Genuine Impact / Chris Quinn
Price changes before/on/after FED speeches at Jackson hole " since 2003, there are 7 instances $SPX down 2 weeks prior to #JacksonHole .. 6 of 7 instances, equities rose in the week post-JH ..”
Source: Fund Strat thru Carl Quintanilla
Wage inflation: UPS workers approve massive new labor deal with big raises. The deal passed with 86.3% of votes, the highest contract vote in the history of Teamsters at UPS, according to the union
Under the new agreement: 1. Part time workers will make no less than $21/hour, up from a minimum of $15.50 currently, 2. Full time workers will average $49/hour. Current workers will get $2.75 more an hour this year and $7.50 an hour more over the five-year contract. 3. UPS drivers will average $170,000/year 4. Contract impacts ~340,000 workers 5. The company cut its full-year revenue and margin forecasts, citing the “volume impact from labor negotiations and the costs associated with the tentative agreement.” UPS has put $30 billion aside for this new contract
