SOMETHING INTERESTING

Web 3.0 is most certainly the future. But you must understand where we’ve been and where we are to understand where we’re going. Here’s a killer thread to get you up to speed on Web 3.0.

MARKET MOVERS

  • Here’s a fun little fact - Bitcoin's market cap has doubled 15 times over the last 10 years, and the SEC is going to approve the first BTC futures ETF to start trading next week. But, it’s probably nothing {sarcasm}. Read more here.

  • Inflation is transitory, they said. Nothing to worry about, they said. Well, we’ve now seen four straight months of more than 5% inflation. The bottom 45% of Americans are being punished by this insane monetary and fiscal policy. Even major hedge fund managers and investors are pointing the finger at the Fed for being the number one contributor to the wealth inequality gap. Here’s something even scarier: Bloomberg published an op-ed arguing for higher and longer-lasting inflation, arguing that the Fed should make inflation permanent. What happens when we the people get tired of this nonsense? P.S. Bitcoin was built for this. Read more here.

  • Biden did in fact sign that bill to provide a temporary increase to the US borrowing limit and avoid a government default. The debt ceiling was increased by $480 billion, just enough to fund the Treasury through early December. Let the squabbling among parties ensue over what to do once December arrives. Read more here.

  • US IPO issuance in 2021 is at $290 billion, 73% higher than last year's record total. A good majority of these IPOs were SPACs, which have reached the financial equivalent of celebrity status in this year compared to years past. Read more here.

WHAT TO WATCH

  • Higher rents are great for investors but are burdening households and exacerbating the inflation issue. This is bad news for the Fed and the White House for two reasons: 1) it could mean prolonged price gains, and 2) it’s hitting households in their pocketbooks, diminishing well-being, and fueling unhappiness among voters. As sticky inflation goes up, Biden’s ratings go down. Read more here.

  • The U.S. is lifting its international travel ban on Nov. 8 to allow fully vaccinated visitors into the country. We’re not sure if this is a relief or a burden for the airline industry, seeing as this last week both Southwest and American massively struggled to handle their current logistics and flight schedules. Surely it was just the bad weather...right? Read more here.

  • Let’s talk about a shrinking US population as it relates to long-term economic impact. Real estate returns are tied to demand growth, which is tied to population growth. Immigration has significantly slowed, US birth rates have dropped during Covid, which could mean we’re headed for little-to-zero-to-negative growth in the coming decades. Read more here and here.

  • Where should you invest in real estate? Landlord-friendly states, business-friendly states, and places that are friendly to your cause as an investor. Usually, Red States meet these criteria and favor the investor. The political environment is conservative, they expect people to uphold their contracts, and if you’ve got more legal backing to kick out a bad tenant. Everything becomes more enforceable in a red state. Read more here (25:41).

  • Don’t put it past the savvy Redditt crowd to find a good loophole. Users have found a way to bypass brokers altogether. Message boards have been flooded with screenshots of utilizing direct registration platforms and transferring their trading accounts to agents that allow them to hold stock in a company directly. It’s interesting to watch as the “stick it to Wall Street” movement persists among the retail investor community. Read more here.

FINAL THOUGHTS

“A friend of mine told me this story about wild ducks — Wild ducks migrate in the winter not because of the cold but because of the food. If you feed them, they won't migrate. Keep feeding them for a few years in a row, still won't migrate. Then stop all of a sudden, they won't migrate, and they'll die. The moral is that you can tame wild ducks, but you can't wildify tamed ducks (that's why there isn't even such a word as wildify). So you have to be careful not to lose that hustle.” - Apoorva Govind

Complacency is a killer. Period. If you’re feeling comfortable or bored, address it immediately. On a practical level, you can fight complacency by 1) re-engaging your relationships, 2) challenge yourself by doing/learning/creating/building something new, 3) get out of your mind castle and start leading and serving others to a bigger vision 4) get a bigger vision for yourself.

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