Don’t underestimate the power of compounding; a seemingly small increase from 7.5% to 10% yields 2.5x the initial investment over 20 years. Many UHNW individuals unknowingly lose substantial wealth long-term due to disorganized financial affairs (Hayden Capital via The Curious Mind).
Rates forecasts illustrate the unpredictability of the future (@Aureliusltd28).
Great weekend listen. Will make you a bit worried about the direction of equity markets.
Your periodic update on the Toronto condo market. It will get worse before it gets better. Paying over $1M for 585 sqft is where this went wrong in the first place (@BenRabidoux).
The broader real estate sector is going to remain pressured until rates fall.
Housing markets are diverging regionally. The Sunbelt, with increased housing supply, has more homes available, while Northern states face tighter markets (wsj).
Phoenix is an example of a city that will see price pressure due to excess supply (@JohnWake).
Advanced economies as a whole have underbuilt housing, especially since the global financial crisis (The Economist via The Daily Shot).
Of 2021’s unicorns, 13% exited, 2% shut down, 13% raised up rounds, and 72% remain in limbo. (@PeterJ_Walker).
Alternative asset manager stocks have puked over the past month and a half (FT).
Asset management’s greatest invention aside from the 2 and 20 fee structure is perpetual fee paying capital.
Over the past five years, 80% of infrastructure asset fundraising was concentrated among only 10 managers (@holistic_pm).
Alternative asset management with higher fees are better businesses than traditional asset managers. Wonder when/if we will see material fee compression in alts.
If this chart is used to justify investing in private credit… Run. Private credit has risk, and the lack of mark to market doesn’t negate that risk. (@junkbondinvest).
