Quote of the Day
"The best we can do is understand that sometimes, things will come out of nowhere and send shock waves through the markets. And given a little time, these things become another one of those more manageable risks that surface on many surveys for months."
(Sam Ro)
Chart of the Day
A reminder of just how bad the bond bear market has been. (chart via YCharts)
Markets
- Market participants often worry about stuff that doesn't happen. (tker.co)
- Why don't we talk more about this brutal bond bear market? (etf.com)
- Misallocation of capital is nothing new. (ritholtz.com)
Companies
- The biggest beneficiaries of AI may not be the AI companies. (downtownjoshbrown.com)
- It's easy to overlook key ingredients in industrial staples. (fortunefinancialadvisors.com)
- Everybody loves Costco ($COST). (wsj.com)
AI
- Why Kimi K3 matters, but not as much as you think. (asymmetricalbets.substack.com)
- OpenAI has a big Apple ($AAPL) problem on its hands. (daringfireball.net)
- Why Demis Hassbis' AI regulation memo matters. (sebastianmallaby.substack.com)
Trading
- The rails for 'Brokerage 2.0' are getting laid. (howardlindzon.com)
- Citadel Securities just invested $400 million into Crypto.com. (reuters.com)
- On the risks of perpetual futures. (ft.com)
Conflicts of interest
- It's hard to keep track of all the money flowing into Trump's network of entities. (wsj.com)
- Some evidence that someone in the administration wanted to steer IRS audits. (huffpost.com)
- It's hard to know who's betting on what in Washington DC these days. (wsj.com)
- FCC commissioners regularly accept gifts from regulated companies. (propublica.org)
- Why Congress passed laws to prevent sitting Presidents from putting their image on money. (npr.org)
Stay in touch
- Do you in wealth management? Sign up for our advisor-exclusive Talking Wealth newsletter. (talkingwealthpod.com)
- Don't miss a thing! Sign up for our daily e-mail newsletter. (abnormalreturns.com)
Policy
- The Trump administration is systematically undermining things that drove American economic growth. (theatlantic.com)
- How is the ROAD to Housing Act going to work. (ft.com)
- Why corporations pay so little in taxes in the U.S. (paulkrugman.substack.com)
Economy
- The effective U.S. tariff rate has settling in around 6-7%. (apollo.com)
- The boom in new businesses keeps rolling. (nytimes.com)
- Kevin Warsh should answer this simple question. (stayathomemacro.substack.com)
- The economic schedule for the coming week. (economicweekly.substack.com)
Earlier on Abnormal Returns
- Top clicks this week on Abnormal Returns. (abnormalreturns.com)
- What you missed in our Saturday linkfest. (abnormalreturns.com)
- What you missed in our Friday linkfest. (abnormalreturns.com)
Mixed media
- The World Cup has been a boon for Kalshi and Polymarket. (cnbc.com)
- Lionel Messi actually lives up to the hype. (nytimes.com)
- Will American fans stick around after the World Cup? (politico.com)
- Why can't the NFL just use the same turf as FIFA? (nytimes.com)
- The winner of the World Cup will be one of the best teams ever. (natesilver.net)