{"id":54714,"date":"2021-05-12T03:18:00","date_gmt":"2021-05-12T07:18:00","guid":{"rendered":"https:\/\/thedisciplinedinvestor.com\/blog\/?p=54714"},"modified":"2021-05-12T03:18:00","modified_gmt":"2021-05-12T07:18:00","slug":"dhunplugged-555-duhflation","status":"publish","type":"post","link":"https:\/\/thedisciplinedinvestor.com\/blog\/2021\/05\/12\/dhunplugged-555-duhflation\/","title":{"rendered":"DHUnplugged #555: DuhFLATION"},"content":{"rendered":"

Inflation talk is starting to create concern. Wondering if Elon’s SNL appearance was a “Jump the Doge” event.<\/p>\n

ARK Investments seeded by ArchEgos – same strategy?<\/p>\n

Hacking the US infrastructure – what could be next?<\/p>\n

Fed Limericks are Back – PLUS we are now on Spotify<\/a> and Amazon Music\/Podcasts<\/a><\/strong>!<\/p>\n

\n

<\/span><\/p>\n

\n
<\/span>Click HERE for Show Notes and Links<\/div>\n
\n

DHUnplugged is now streaming live – with listener chat. Click on link on the right sidebar.<\/strong><\/span><\/p>\n

\n
\n

Love the Show?
\nMaking some $$ from the Weekly Stock ideas?
\nThen how about a Donation?<\/h4>\n

\n
\n\"\"<\/form>\n<\/div>\n
\n

Follow John C. Dvorak on Twitter<\/strong><\/a><\/p>\n

Follow Andrew Horowitz on Twitter<\/strong><\/a><\/p>\n

Warm Up<\/strong>
\n<\/span><\/span>Back from a big diving weekend in the Keys (Florida: Masks not required unless you are diving)<\/span><\/span>
\nKeys Packed – Florida clearly the place to be…
\nUpdate on the latest key economics
\nA hack\/ransomware shutdown of a key gas pipeline
\nLooking at lumber prices – housing costs
\nA Nasty turn of evens for markets today
\nAnnouncing the Winner of the Pfizer CTP
\n<\/span><\/span><\/p>\n

Market Update<\/strong>
\n– Horrible Jobs Report – Missed all Estimates (But excites markets thinking Fed for longer – for a day)
\n– DogeCoin plunges 30% during Musk’s SNL appearance (Robinhood outage during sell-off) Jump the Doge Event?
\n– Tech Selling off to start the week – possibly due to ArchEgos?
\n– DJIA hits a new All Time High – Keeps plowing ahead
\n– Margin Debt reaches all-time high – lots of leverage in the system
\n– – Is margin debt being cleaned up – DJIA rolls hard along with “Spec” plays on Tuesday
\n– CPI out Wednesday – Yields? (Yes, we have DuhFlation!)<\/p>\n

Stream and Chatroom<\/strong>
\n– We don’t mention this often enough – Live at 9PM Tuesdays with listener chatroom (dhunplugged.com)<\/p>\n

Musk – SNL<\/strong>
\n– Publicly announced he has Asperger’s
\n– A developmental disorder affecting ability to effectively socialize and communicate. Asperger syndrome is a condition on the autism spectrum, with generally higher functioning. People with this condition may be socially awkward and have an all-absorbing interest in specific topics. Communication training and behavioral therapy can help people with the syndrome learn to socialize more successfully.
\n– Said that Dogecoin was a “Hustle”<\/p>\n

Musk\/SpaceX – One Day Later<\/strong>
\n– SpaceX will launch the \u201cDOGE-1 Mission to the Moon\u201d in the first quarter of next year, with Elon Musk\u2019s commercial rocket company accepting the meme-inspired cryptocurrency dogecoin as payment.
\n– Geometric Energy Corporation announced the dogecoin-funded mission on Sunday, with the statement not disclosing the mission\u2019s financial value.
\n– \u201cWe\u2019re excited to launch DOGE-1 to the Moon!\u201d, SpaceX Vice President of Commercial Sales Tom Ochinero was quoted as saying in the statement released by Geometric Energy. \u201cThis mission will demonstrate the application of cryptocurrency beyond Earthorbit and set the foundation for interplanetary commerce\u201d.<\/p>\n

Pipeline Hack\/Hijacked<\/strong>
\n– Top U.S. fuel pipeline operator Colonial Pipeline has shut its entire network after a cyber attack, the company said in a statement on Friday.
\n– Colonial’s network supplies fuel from U.S refiners on the Gulf Coast to the populous eastern and southern United States. The company transports 2.5 million barrels per day of gasoline, diesel, jet fuel and other refined products through 5,500 miles (8,850 km) of pipelines.
\n– Colonial Pipeline says it transports 45% of East Coast fuel supply.
\n– Word is that the pipeline will be restarted by close of business tomorrow. (May take a few days to get all running again)<\/p>\n

Decentralization – Follow Up (4 Types World Bank)<\/strong>
\n– Political decentralization<\/strong>\u2014giving citizens or their representatives more power in public decision-making.<\/span>
\n– Administrative decentralization<\/strong>\u2014transfer of responsibility for planning, financing & management of public functions from center to regions.<\/span>
\n– Fiscal decentralization<\/strong>\u2014ensuring sufficient revenue to regions through self-financing, cost recovery, co-financing, expanded revenue base, fiscal transfer, etc.<\/span>
\n– Market decentralization<\/strong>\u2014letting the private sector take charge through privatization and\/or deregulation<\/span> \u201cAn appropriate balance of centralization and decentralization is essential to the effective and efficient functioning of government. Not all functions can or should be financed and managed in a decentralized fashion.\u201d (*** Democratization Level ***)
\n– What level of enlightenment do we need for true decentralization? (non autocratic, non-federal)<\/span><\/p>\n

Question: Can Religion be Decentralized?<\/strong>
\n– Buddhism?<\/p>\n

Could be Big<\/strong>
\n– Celebrity<\/em> stockpicker and Ark Invest Chief Executive Cathie Wood told CNBC on Friday that hedge fund veteran Bill Hwang had provided seed capital for Ark\u2019s first four exchange-traded funds.
\n– Archegos Capital Management, the New York investment fund run by former Tiger Asia manager Hwang, was preparing for insolvency as banks involved in financing its trades seek to recoup some of their losses,
\n– IF seed capital still at ARK, could there be a move to force sales of some positions to recoup bank losses?<\/p>\n

FED Chiming In – Ringing Caution Bell<\/strong>
\n– In its semiannual Financial Stability Report, the central bank said that while the system overall has remained largely stable even through the Covid-19 pandemic, future dangers are rising, in particular should the aggressive run on stocks tail off.
\n– “High asset prices in part reflect the continued low level of Treasury yields. However, valuations for some assets are elevated relative to historical norms even when using measures that account for Treasury yields,” the report states. “In this setting, asset prices may be vulnerable to significant declines should risk appetite fall.”<\/p>\n

Growth vs. Value – Historical View<\/strong><\/p>\n

Growth\/Value<\/strong><\/span><\/a><\/span><\/p>\n

IP Waivers?<\/strong>
\n– President Joe Biden on Wednesday threw his support behind waiving intellectual property rights for COVID-19 vaccines, bowing to mounting pressure from Democratic lawmakers and more than 100 other countries, but angering pharmaceutical companies.
\n– \u201cThis is a global health crisis, and the extraordinary circumstances of the COVID-19 pandemic call for extraordinary measures,” Tai said in a statement (Biden Trade Negotiator), amid growing concern that big outbreaks in India could allow the rise of vaccine-resistant strains of the deadly virus, undermining a global recovery.<\/p>\n

Peloton<\/strong>
\n– Peloton announced Wednesday voluntary<\/em> recalls of both its treadmill machines over safety concerns. (stock down hard)
\n– The announcement marked a major reversal of Peloton’s initial reaction and comes after weeks of discussions with the U.S. Consumer Product Safety Commission.
\n– In a statement, Peloton apologized for not acting more quickly to resolve the issue after reports of one death and dozens of injuries.
\n– The recall affects about 125,000 Tread+ machines and roughly 1,050 Tread products in the U.S.
\n– Peloton has also stopped sale and distribution of the Tread+ and continues to work on additional hardware modifications.
\n– Handled poorly from the start<\/p>\n

How Will This Go?<\/strong>
\n– Federal Judge Dabney Friedrich struck down on Wednesday the national eviction moratorium, potentially leaving millions of Americans at risk of losing their homes.
\n– The Centers for Disease Control and Prevention has banned most evictions across the country since September.
\n– President Joe Biden extended that protection to renters until July.<\/p>\n

How many homes can you build with $50,000 of lumber.<\/strong>.. (H\/T Visual Capitalist)<\/p>\n