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The Zeitgeist – 4.19.2019

Summary:
Every morning, we run the Narrative Machine on the past 24 hours worth of financial media to find the most on-narrative (i.e. interconnected and central) stories in financial media. It’s not a list of best articles or articles we think are most interesting … often far from it. But for whatever reason these are articles that are representative of some sort of chord that has been struck in Narrative-world. April 19, 2019 Narrative Map – US Equities Source: Quid, Epsilon Theory General “Buck” Turgidson: Doctor, you mentioned the ratio of ten women to each man. Now, wouldn’t that necessitate the abandonment of the so-called monogamous sexual relationship, I mean, as far as men were concerned?Dr. Strangelove: Regrettably, yes. But it is, you know, a sacrifice required

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Every morning, we run the Narrative Machine on the past 24 hours worth of financial media to find the most on-narrative (i.e. interconnected and central) stories in financial media. It’s not a list of best articles or articles we think are most interesting … often far from it.

But for whatever reason these are articles that are representative of some sort of chord that has been struck in Narrative-world.


April 19, 2019 Narrative Map – US Equities

The Zeitgeist – 4.19.2019
Source: Quid, Epsilon Theory

General “Buck” Turgidson: Doctor, you mentioned the ratio of ten women to each man. Now, wouldn’t that necessitate the abandonment of the so-called monogamous sexual relationship, I mean, as far as men were concerned?

Dr. Strangelove: Regrettably, yes. But it is, you know, a sacrifice required for the future of the human race. I hasten to add that since each man will be required to do prodigious… service along these lines, the women will have to be selected for their sexual characteristics which will have to be of a highly stimulating nature.

Ambassador de Sadesky: I must confess, you have an astonishingly good idea there, Doctor.

That’s actually not a quote from the Pensions & Investments article, but it’s a pretty good approximation of the MMT “debate” when it’s held on MMT turf … meaning when the discussion accepts the language and terminology of MMT as its starting point and moves onto questions of practicality.

It’s what Socrates called sophistry, and he knew a thing or two about debates.

Here’s the Epsilon Theory effort to call MMT by its proper name:


The Zeitgeist – 4.19.2019

Good thing you didn’t short China.

No, you didn’t short China, but if you are an active EM portfolio manager, you are almost certainly underweight China.

Rusty discussed this at length on our last ET Live! webcast. Join us next Weds at 2p EDT and I’ll make sure he covers this again.


Cain’s greatest contribution to the Fed would be his business perspective. Historically, Fed governors have been academics and finance professionals. Main Street is absent. Cain, in contrast, has large corporation experience (in Minneapolis) and worked with pizza franchisees, which are mostly small businesses. Having a good handle on the challenges that small businesses face is a plus.

The Zeitgeist – 4.19.2019

TFW … you’re a “Leadership Strategy” Forbes.com contributor and you’ve got to say something to get on the Weekly Traffic Report.

Being a Forbes.com contributor is the new being an adjunct professor at a community college.


I have no idea where Lyft goes from here. Maybe up, maybe down … I really have no idea. But I will tell you that this is classic wall-of-worry narrative creation to set up a resolvable “crisis” for the overall market.

That’s actually not a quote from this Fortune puff piece, either, but from an ET Zeitgeist last week.

The Zeitgeist – 4.19.2019

Here’s an actual article quote:

The new IPOs are “great for the capital markets, which need high-tech growth companies,’’ Santosh Rao, head of research at Manhattan Venture Partners, said in an interview. “The market is yearning for growth stocks. These companies are very good, very disruptive.”

Huzzah, market crisis averted! We’re saved!


German stocks were subdued on Thursday ahead of the Easter holiday break. Most European markets will remain closed on Friday and Monday for the Easter holiday.

European markets are closed for 4 days, and judging by volumes on Thursday they might as well have been closed yesterday, too. Fair enough. But what always surprises me is that when European markets are closed, senior European investment professionals don’t work. At all. They don’t come into the office. They don’t catch up on work from home. They just don’t work. It’s a degree of separation from work that is literally unthinkable for senior American investment professionals, all of whom are absolutely working from home today.

I’m not saying that this difference is good or bad. I’m just saying that it IS, and the difference is not mean-reverting over time.


About Ben Hunt
Ben Hunt
He is the chief investment strategist at Salient, a $14 billion asset manager based in Houston and San Francisco, and the author of Epsilon Theory, a newsletter and website that examines markets through the lenses of game theory and history. Over 100,000 professional investors and allocators read Epsilon Theory for its fresh perspective into market dynamics.

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