Tuesday , April 20 2021
Home / Tag Archives: In Brief

Tag Archives: In Brief

ET Podcast #8 – Leverage and Its Discontents

The Epsilon Theory podcast is free for everyone to access. You can grab the mp3 file below, or you can subscribe at: Spotify: https://open.spotify.com/show/3ZXOnreiGGiUtuGHzbin6d Apple: https://podcasts.apple.com/us/podcast/epsilon-theory-podcast/id1107682538 Three blow-ups in three months: Archegos, Greensill, and Melvin Capital. What do they have in common? Insane leverage employed to maximize private gain, provided by lenders that can socialize losses. ET...

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A Conversation with Howard Marks

Brent Donnelly is a senior risk-taker and FX market maker at HSBC New York and has been trading foreign exchange since 1995. He is the author of The Art of Currency Trading (Wiley, 2019) and his latest book, Alpha Trader, hits the shelves in Q2 2021. You can contact Brent at [email protected] and on Twitter at @donnelly_brent. As with all of our guest contributors, Brent’s post may not represent the views of Epsilon Theory or Second Foundation Partners, and should not be...

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ET Podcast #7 – Inflation Investing

The Epsilon Theory podcast is free for everyone to access. You can grab the mp3 file below, or you can subscribe at: Spotify: https://open.spotify.com/show/3ZXOnreiGGiUtuGHzbin6d Apple: https://podcasts.apple.com/us/podcast/epsilon-theory-podcast/id1107682538 We’re going to Pack-source a slate of investment strategies for an inflationary world. Here are five tentpoles to organize and support that effort, five sets of questions we must answer. What should we think...

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The Best Way to Rob a Bank

The best way to rob a bank is to own a bank. I think that the collapse over the past week of Greensill Capital has a lot of systemic risk embedded within it, particularly as the fraudulent deals between Greensill and its major sponsors – Softbank and Credit Suisse – come to light. And that’s not even considering Greensill’s second tier of sponsors – entities like General Atlantic and the UK government – all of whom are up to their eyeballs in really dicey arrangements....

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A Freaky Circle

Source: Thor Ragnarok A quick but important note: We don’t have a dog in this fight. But we are conflicted. We have subscribers at almost all of the firms being mentioned. Our principals have done business with many of them. We’ve been clients of some, too. We like most of them. On both sides. We also don’t really care what any of them think. Make of it what you will, but clear eyes, even with us. THOR: How did you…KORG: Yeah, no. This whole thing is a circle. But...

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The Fed’s Kryptonite

This piece is written by a third party because we think highly of the author and their perspective. It may not represent the views of Epsilon Theory or Second Foundation Partners, and should not be construed as advice to purchase or sell any security. Overview Last November in Blue Wave I wrote: “The coming stimulus isn’t a panacea! It means massive deficits will persist. They will require higher taxes and incredible amounts of US Treasury issuance. Higher TAXES and...

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ET Podcast #6 – The Business of Wall Street

The Epsilon Theory podcast is free for everyone to access. You can grab the mp3 file below, or you can subscribe at: Spotify: https://open.spotify.com/show/3ZXOnreiGGiUtuGHzbin6d Apple: https://podcasts.apple.com/us/podcast/epsilon-theory-podcast/id1107682538 Very little of investing today is buying and selling shares of common stock in individual companies. Instead, we buy and sell what Wall Street calls “products” – mutual funds, ETFs, options, REITs, SPACs, etc....

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The Third Rail Switch

For most of the last 40 years – at least since Tip O’Neill or one of his aides coined the term – the third rail of US politics has been Social Security. It is strange to think about. We are all MMTers now, after all, and what’re a few trillion dollars among friends? In 2021, entitlement reform is a third rail in the same way that a high-voltage power line is a third rail. Sure, it will electrocute you, but who is going to go through the trouble of getting to it? We...

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ET Podcast #5 – Gnostic Nationalism

The Epsilon Theory podcast is free for everyone to access. You can grab the mp3 file below, or you can subscribe at: Spotify: https://open.spotify.com/show/3ZXOnreiGGiUtuGHzbin6d Apple: https://podcasts.apple.com/us/podcast/epsilon-theory-podcast/id1107682538 Every political movement has a political philosophy, and for Trumpism and MAGA it’s the Dominion theology of the charismatic/Pentecostal church. Neither the rise of Donald Trump nor the attack on our Capitol can be...

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ET Podcast #4 – Hunger Games

The Epsilon Theory podcast is free for everyone to access. You can grab the mp3 file below, or you can subscribe at: Spotify: https://open.spotify.com/show/3ZXOnreiGGiUtuGHzbin6d Apple: https://podcasts.apple.com/us/podcast/epsilon-theory-podcast/id1107682538 What’s happening with Reddit and Gamestop and Robinhood is a revolution, but not the revolution you think. This isn’t a “democratization” of Wall Street. You were played. Again. It’s a revolution in...

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