WiseAlpha

  • Over the next few months, Snippet will be sponsored by WiseAlpha.
  • WiseAlpha is a groundbreaking platform for UK investors to gain access to the institutional corporate bond market on a fractional basis.
  • At WiseAlpha, you can invest in increments as little as £100 across a range of bonds.
  • You can set up an innovative finance ISA with them to get tax advantages.
  • None of this is investment advice; do read our disclosures.

S&P 500 Futures Financing

  • The financing rate for equity exposure via futures has been very high.
  • The S&P 500® financing spread can’t be directly observed, but it can be estimated by comparing the actual price of futures to the fair value implied by dividend forecasts, interest rates, and spot prices. Figure 1 plots one such estimate since 2012.
  • Reasons here.

US Electric Utilities

  • Just four companies serve 90% of the technical testimony utilities use to calculate the rate of return in the US.
  • In 2019, two experts at Carnegie Mellon, Paul Fischbeck and David Rode, analyzed 1,600 rate cases over 40 years, and noted the “balance between utility companies and their customers has been shifting over time, in favor of the utilities.” What investors were being paid to take risk in putting money into a utility in 1980 was about 3%, today it is nearly 7%.
  • More on how US electric utilities work.

Fragrances and AI

  • Consumers of all age groups are using around four different fragrances regularly, which is a significant change from a decade ago when they had one signature scent.
  • Some people talk about the ‘Deep Seek Syndrome,’ saying, ‘You’re overspending, you’re spending $500 billion, you’re overspending! You can save so much more by spending less.’ But I think they are looking at it the wrong way. How much percent of GDP will be replaced by a billion-dollar smart system? I would say at least 5% within 10 years. That 5% is $9 trillion—or if it’s 10%, it’s $18 trillion. So, somewhere between 5% to 10% of today’s GDP will be replaced by this superintelligence. Well, if that’s the amount of return, you shouldn’t be scared of spending a few trillion dollars. If the return is $9 to $18 trillion per year, why should you save? Why should you try to be efficient? For what? I don’t get it. Just a little difference makes a huge return on your market share.” – Softbank CEO Masayoshi Son
  • Source: A good smorgasbord of quotes from recent transcripts.
WordPress Cookie Notice by Real Cookie Banner