WSJ: May 20, 2020

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May 20th, 2020 – the day someone close to the creator of Bitcoin, Satoshi Nakamoto, moved 50 BTC that was mined in 2009. Just a few months after it’s initial creation. Don’t know what I’m talking about? Click this link – https://decrypt.co/29525/500000-bitcoin-stash-from-satoshi-era-just-moved

Coronavirus Layoffs Remake Silicon Valley Job Market

The tech industry has been one of the most resilient sectors of the economy during the COVID19 induced economic downturn. Microsoft and Amazon both reported strong sales growth in the first quarter, but companies like Uber and AirBnB can’t say the same.

On Monday, Uber announced it was laying off a further 3,000 people – bringing their total to 6,700 employees. Lyft said they’re slashing 17% of its staff, and AirBnB said it is cutting about 25% of its jobs after bookings on its site plummeted with people largely being unable to travel.

That’s 10,000+ people in Silicon Valley now unemployed. According to Layoffs.fyi, tech startups have seen more than 56,000 layoffs – a drop in the bucket when compared to the 36.4M currently applying for unemployment.

Coalition Inc. (https://www.coalitioninc.com/) recently raised $90M in a funding round and has hired about 20 people since March. They plan to add another 80 more this year. Who else is hiring? Amazon Web Services, Zoom Video Communications, and Facebook. Ole Zucks last month said the company would add at least 10,000 people in product and engineering roles this year.

If you’re finding yourself interviewing for a new job, check out this website – it’s how I was able to land multiple job offers out of college.
(https://www.themuse.com/advice/star-interview-method)

Behind Bond Market’s Stall, Investors See Hard Times Ahead

Yields on US government bonds have stalled near all-time lows, a sign that investors are anticipating a difficult economic recovery and years of aggressive monetary stimulus – yikes.

For the last month and a half, the yield on the benchmark 10-year US Treasury note has hovered around 0.66% – a shade above its all-time low of around 0.5% set in March.

Two factors typically determine longer-term Treasury yields – let’s break those down.

1. Investors estimates of the average federal fund rate set by the Fed over the life of a bond aka the percent a bond pays

2. Risk premium aka the extra amount of yield investors demand to be compensated for the change that short-term interest rates could rise higher than anticipated as a result of scenarios like economic growth and inflation.

So what in the world does this mean? Glad you asked.

Wednesday’s closing 10-year yield of 0.679% suggests investors believe that the Fed could basically repeat its post-crisis playbook: leaving the federal fund rate near 0% for 7 years then raising it to 2%.

Long story short, debt is cheap and investors are scared.

U.S. Stocks Advance on Recovery Hopes

Hold up – you just said investors were scared.

Welcome to 2020, the year with the biggest disconnect between the economy and the stock market ever.

US stocks rose today on optimism about the prospects for economic recovery in the wake of the COVID19 pandemic. As of today, all 50 states have relaxed some of their coronavirus restrictions and investors are hyper-focused on any hopes of a vaccine.

Stocks are up +33% since the March lows despite the unprecedented blow this pandemic has dealt to businesses and household + the crazy uncertainty about the medical and economic path ahead. Again, 2020 – huge disconnect going on here.

Wednesday also brought further news of a potential in the race for a vaccine – Inovio Pharmaceuticals said its experimental coronavirus vaccine induced immune responses in mice and guinea pigs.

The latest earnings reports from retailers were a mixed bag – Lowe’s beat analyst expectations with higher online sales (good) but since they withdrew their financial guidance for the year (bad) their stock price was flat.

It’s almost surprising now when I see a company not withdraw their financial guidance – like how do they have enough confidence to keep it?

Spotify Strikes Podcast Deal With Joe Rogan Worth More Than $100 Million

Shout out to my DMT loving friend Joe Rogan for getting a BAG!

Joe Rogan is taking his podcast exclusively to Spotify in a licensing deal worth more than $100M. Joe Rogan has withheld his podcast (and video podcasts on YouTube) from Spotfy saying they don’t pay enough, especially when compared to YouTube.

Starting September 1st, his entire video podcast library (dating back until 2009) will be available on Spotify and starting in 2021 his video podcasts will only be on Spotify. No more YouTube Joe Rogan.

Joe Rogan’s podcast currently ranks No. 2 on the Apple Podcast’s rankings and has sponsors including 23andMe, Dollar Shave Club, and ZipRecruiter.

“We’re going to be working with the same crew doing the exact same show” says Joe.

Do you all listen/watch Joe? I do and I’ll definitely be hopping over to Spotify to watch and listen to his show.

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