New all-time highs for equity indexes as we all live in an AI simulation. Even Japan has now surpassed its 1989 peak, there is truly nothing AI can't do. Jobless claims continue to show that you can't get fired (I guess unless you work for one of the many companies that have announced layoffs..when, if ever, do those hit the claims data?) and existing home sales data shows you can sell a home even with 7-handle mortgage rates.
Have you stopped to think about how 76ers great Allen Iverson feels about all this AI hype? After all the man was the original AI. I recently contemplated this and found that apparently others have thought about this too. Fortune wrote a satire piece back in 2018 on the topic.
Yields sit near 3 month highs as optimism around rate cuts continues to wane. 2Y at 4.71% up 50bps on the month.
Speaking of yield, Matt Levine's article yesterday shed some light on the ETF ticker BOXX, which is designed to provide T-Bill returns (risk-free) but without generating taxable interest. Pretty cool if these guys really have figured out a way to get a risk free return with more tax efficiency. How is that possible you ask? The answer is in the name "Box" which is for "Box Spread". Unfamiliar with options and the box spread trade, the NY Fed actually wrote about how they use these trades to estimate risk-free rates while eliminating "convenience yields". In summary, from The Research Foundation of CFA Institutes Fundamentals of Options and Futures:
"The box spread is really a spread of two spreads—constructed by buyinga bull call spread and selling a bull put spread. The pair of option strikeprices for the put and call spreads are the same, with X2 greater than X1.The box spread can also be thought of as two put–call parity pairs, onelong and the other short.The payoff profile for the box spread, shown in Figure E.6, is a constant,X2 – X1, the same no matter what happens to the security price.Because the payoff is constant, the four options should be priced to givea net payoff equal to the riskless interest rate by arbitrage"
XTOD: Sad to share that I was laid off from Google today. I was in charge of making the algorithms for Gemini as woke as possible. After complaints on Twitter surfaced today, I suddenly lost access to Hangouts and Google Drive, and my manager (he/him), texted me to let me know that i was fired.
I’m getting 12 months of severance and after that I’ll decide what to do next (seeking $2.7m TC).
What a journey these past 5 months have been learning about LLMs and AI!
XTOD: Me: I want to buy a GPU for gaming
Nvidia: yep
Me: …and a crypto mining operation
Nvidia: yeah nw we got you bro
Me: also weird q but do you know where I can turn $100 into $100,000
Nvidia: buddy ur not gonna believe this
XTOD: Crazy. Pelosi has now made 10 years worth of salary through her $NVDA trade.
She's up ~$1,800,000 in just 92 days. Her yearly salary is $175K. That's 10x.
XTOD: This is absolutely crazy...An owner of an office building in LA is seeking approval to tear down the building and construct 30 EV charging stations I don't know what's crazier...this headline or seeing office properties drop 80-90% in just a few years The commercial real estate recession (primarily office) has gone from scary to a meltdown in many cities across the US and it seems as though the damage is permanent
XTOD: Scientists grew a pair of testicles in a lab — and they offer new hope for male infertility https://trib.al/pAJul6d
XTOD: This puts a new spin on the phrase "grow a pair" lol
XTOD: Good news for Big 4 accountants
XTOD: Less > More Slow > Fast People > Things
https://x.com/anothercohen/status/1760500433733165226?s=20
https://x.com/HeroDividend/status/1760416524005777718?s=20
https://x.com/TripleNetInvest/status/1760469970037936307?s=20
https://x.com/PelosiTracker_/status/1760708091757383763?s=20
https://x.com/litcapital/status/1760746601373683888?s=20
https://x.com/GregoryMcKeown/status/1760713713227845691?s=20
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