Odd Lots

In this lively discussion, Matt Levine, a Bloomberg Opinion columnist, shares insights into MicroStrategy's bold financial maneuvers, likening its operations to a 'perpetual motion machine.' He explores how the company's strategic Bitcoin investments and innovative use of convertible bonds have successfully boosted its market value. Levine also highlights the risks of volatility in this crypto-driven strategy and touches on the rise of custom indexing as a new investment choice. Expect humor alongside savvy financial analysis!

Lee Everett, Head of Research and Strategy at Cortland, sheds light on the troubling future of housing affordability. He discusses how rising interest rates have dramatically reduced new apartment development, leading to an impending supply crisis. Everett highlights the combined impact of labor shortages due to deportations and escalating insurance costs, all while rent prices have just begun to stabilize. With economic tensions mounting, a new shock to housing affordability could be on the horizon, affecting renters and buyers alike.

Zvi Mowshowitz, an AI expert and author of the Substack 'Don't Worry About the Vase,' dives into the market turmoil sparked by DeepSeek, a new AI model from China. He explains how DeepSeek caused a staggering loss for Nvidia and other tech giants in just one day. Discussion includes the implications of AI competition and market dynamics, the challenges for established players like Google and Meta, and the ethical considerations surrounding advanced AI. Zvi also touches on the future of AI technology and its financial impact.

Howard Marks, co-founder and co-chair of Oaktree Capital Management, is a renowned credit investor famous for his insights on market bubbles. In this discussion, he delves into how he identifies market bubbles compared to bull runs. Marks shares his experiences from the dot-com bubble and the 2008 financial crisis, highlighting the psychological impact of FOMO on investors. He also offers perspectives on the current Big Tech boom and AI investments, emphasizing the need for strategic thinking and risk assessment in today's volatile market.

Kevin Muir, a former equity derivative trader and the Macro Tourist blog creator, discusses the alarming concentration risk in US equities, where just 10 stocks dominate the S&P 500. He draws parallels to the dotcom bubble and questions whether current enthusiasm for AI is justified. Muir also highlights the regulatory challenges index providers face and the potential vulnerabilities in a market heavily reliant on tech giants. As he shares insights, he explores what this means for investors and whether shifts in focus can balance market dynamics.

Eric Glyman, co-founder and CEO of Ramp, shares insights on corporate AI spending trends. He breaks down how major companies are directing funds towards AI giants like OpenAI and Anthropic, revealing the balance between expectation and reality. Glyman discusses AI's role in revolutionizing expense management and enhancing productivity across various sectors. He also highlights the transformative impact of AI on job roles, stressing the need for evolving skills amid these technological shifts.

Dive into the intriguing world of Trumponomics, where economic policies take center stage. From tariffs and deregulation to tax cuts and protectionism, the complexities of Trump's approach to economics are unpacked. Hear insights on how his policies could reshape the global economy. Expert reporters dissect the impact and implications of these changes, offering a roadmap through the potential chaos of future economic landscapes.

Austin Campbell, an adjunct professor at NYU Stern and CEO of stablecoin company WSPN USA, shares insights on the future of cryptocurrency under potential Trump administration policies. He discusses the industry's desire for regulatory clarity and highlights the changing landscape at the SEC. Campbell examines the implications of stablecoins and banking regulations, emphasizing the need for a flexible regulatory approach. He also underscores the crypto sector's enthusiasm for a more favorable political environment and the complexities of integrating crypto into traditional finance.

Lev Menand, an associate professor of law at Columbia, delves into the eurodollar market's pivotal role in the global financial system. He discusses its historical context, drawing parallels to the 2008 crisis, and emphasizes its current valuation of $13 trillion. Menand raises concerns about offshore dollar liabilities and the regulatory challenges they pose. The conversation also touches on the emerging presence of stablecoins and their potential to reshape financial dynamics, questioning whether they might replace eurodollars as a financial staple.

Lev Menand, a Columbia Law School professor, and Josh Younger, a policy advisor at the Federal Reserve Bank of New York, dive into the tumultuous history of eurodollars. They discuss the pivotal moment of Nixon's move away from the gold standard in the 1970s and its lasting impact on modern finance. The conversation also explores how geopolitical tensions, particularly from the 1973 oil embargo, reshaped global monetary policies and created economic turbulence. Their insights illuminate the complexities that define today's financial landscape.