Taylor Morgan Capital

An excerpt from our latest 2021 Year-End investor letter.

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From our most recent investor letter: a lot of craziness going on on Wall Street.

“Hedge” Funds, the ARKK Tesla ETFs and #Space! “Most institutional portfolios are badly out of balance. The returns of most institutional portfolios are 90+% driven by the return of equities, exposing them to a single adverse event which could last for decades, a poor performing equity market….

Excerpt from our latest Investor Letter. We're living in interesting times, indeed.

GameStop, r/wallstreetbets & The Non-Profitable Tech Index "The nutshell is this: the old line economy stocks just don’t work because they have earnings and eventually rising interest rates impact earnings. New economy stocks have no earnings, so investors don’t see a need to exit.

Great to see good job numbers reported for May this morning. Wall Street had expected a big drop, so the gain in jobs was decidedly surprising (as reflected in the Dow’s rise today).

Hope it holds and a lot of people can start to get back to work safely.



https://www-cnbc-com.cdn.ampproject.org/c/s/www.cnbc.com/amp/2020/06/05/jobs-report-may-2020.html

A good summary of the economic challenges that the Coronavirus has brought to the fore: high debt, low growth, little Fed ammunition.

And these are just those we face domestically - other economies (highly indebted ones like Italy and those highly reliant on oil revenues) face even steeper challenges.

Dominos is an apt metaphor.

The dominoes are aligned for a severe coronavirus-induced recession The virus may prompt a severe recession that could erase much of the 11-year recovery.