I'm not sure where I stand on PE ownership in sports, I know they are allowed to own non-controlling stakes in many sports, but now it's making headlines in the NFL. I guess the major concern would be that over a time financialization will trump the quality of the sport and the connection with the fans and community, but it would seem that keeping the quality of the on the field product high is generally well aligned with financial success. Maybe it doesn't matter anyway as gambling culture already has varying impacts on fan engagement.
Of course once the mosquitos take over we won't have sports. I'm kidding, but I do keep seeing stories about cities and towns dealing with West Nile and closing parks.
Sorry, back to economics and markets. The Conference Board, Consumer Confidence survey showed an increase in confidence and readings in line with the last two years and don't seem to be too concerned with a recession: "consumers did not change their views about a possible recession: the proportion of consumers predicting a recession was stable and well below the 2023 peak.”
Stocks were largely flat. We got a little further steepening of the yield curve with the 2Y at 3.90% and the 10Y at 3.82%.
" Many investors and economists are already celebrating the achievement of a soft landing even though U.S. financial history strongly suggests that such celebrations are premature......The question in 2024 is whether the Fed’s pivot to accommodative policy will resemble the premature pivots of the 1960s and 1970s, or whether the Fed truly has threaded the needle and orchestrated an unprecedented soft landing. My hope is that the Fed has deftly combined critical lessons from the past with shrewd analysis of the present and will achieve an unprecedented soft landing. But my belief is that the Fed is merely repeating the mistakes that their predecessors made in the late 1960s and early 1970s." - Mark Higgins on his Substack
"I am late to this, but a few comments on Chair Powell's speech at the Jackson Hole symposium. First, his speech was an implicit but emphatic declaration that we are not in a fiscal dominance regime. The Fed is still determining the trend path of the price level.... Powell was very clear in his speech that (1) the unwinding of pandemic disturbances and (2) Fed tightening/credibility is what saved the day on the inflation front. Number (2) is a clear indictment against the fiscal dominance view....heights of the pandemic when the Fed bought up most of the treasury issuance and kept rates at 0%. What is remarkable to me is that despite the worsening trajectory of expected primary budget deficits over the past few years, all we got at best was this passing moment of fiscal dominance. - David Beckworth on X
Waller, Bostic, 5Y and NVIDIA on the day ahead.
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