Wealth Management News & Insights – May 26, 2024

Wealth Management News & Insights

There’s Not Enough Power for America’s High-Tech Ambitions, The Downside of Delayed Gratification, Netflix NFL Megadeal

 

 

Primary Sources

  • Minutes of the Federal Open Market Committee: The manager turned first to a review of developments in financial markets. Domestic data releases over the intermeeting period pointed to inflation being more persistent than previously expected and to a generally resilient economy. [FRB]

Financial Markets

  • There’s Not Enough Power for America’s High-Tech Ambitions: Georgia is a magnet for data centers and other cutting-edge industries, but vast electricity demands are clashing with the newcomers’ green-energy goals. [WSJ]
  • Can the Rich World Escape its Baby Crisis: The drop in birth rates, which occurred over the span of a single generation, was a stunning success. That was until it carried on. And on. [Economist]
  • Inside the Rent Inflation Measure That Economics Nerds Love to Hate: The Consumer Price Index inflation measure accounts for housing costs in a complicated way. There are reasons for it. [NYT]
  • Capital Group and KKR Partner to Offer Private Assets to Wider Audience: World’s largest active asset manager and buyout firm to make available hybrid public-private funds to wealthy investors. [FT]

 

 

The chart above illustrates the percentage change in the Consumer Price Index (CPI) for selected categories compared to the corresponding period one year ago. Leading the trends are motor vehicle insurance, hospital services, and motor vehicle maintenance and repair, showcasing the most significant shifts in CPI.

 

Financial Planning

  • The Downside of Delayed Gratification: We’re all told that it pays to be disciplined in our spending and consumption. But the advice can backfire. [WSJ]

Retirement Planning

  • Was the 401(k) a Mistake: The first generation to be fully reliant on 401(k) plans is now starting to retire. As that happens, it is becoming clear just how broken the system is. [NYT]

Business Strategy

  • Netflix Spikes the Football: Behind Its NFL Megadeal: What’s the cost of a game on the streaming giant? About $75 million each. [Hollywood Reporter]
  • NCAA Agrees to Share Revenue With Athletes in Landmark $2.8 Billion Settlement: Breaking with more than a century of policy, the NCAA will pay billions in damages to former athletes and allow schools to pay athletes up to $20 million a year. [WSJ]
  • Google’s Moonshot Factory Falls Back Down to Earth: Alphabet is ending an era of unrestrained invention, spinning off many projects into independent startups. [Bloomberg]
  • U.S. Calls for Breakup of Ticketmaster Owner: Accused of violating antitrust laws, Live Nation Entertainment faces a fight that could reshape the multibillion-dollar live music industry. [NYT]
  • The Architect Who Made Singapore’s Public Housing the Envy of the World: With a focus on affordability, community, convenience and light, Liu Thai Ker replaced squalid slums with spacious high-rises. A recent spike in some sale prices, however, has saddened him. [NYT]

 

Source: SYF

 

The above chart shows that cards opened in 2021 have a much worse trajectory than earlier “vintages” at same point in life cycle.

 

Life & Work

  • Newly Discovered Planet May Be Able to Support Human Life: The study, published in Monthly Notices of the Royal Astronomical Society on Thursday, named the new planet Gliese 12 b. Scientists said in the study that the planet is “the nearest, transiting temperate, Earth-sized planet found to date.” [Time]
  • It’s the Most Expensive Team in Sports—but the Best Player Came for Free: Phil Foden has been a Manchester City player since the Under-9 team. But even in a squad of expensively acquired international talent, he turned into the club’s player of the season. [WSJ]
  • Hacking Phones is Too Easy. Time to Make it Harder: Regulators have avoided the problem for too long. [Economist]
  • Brace Yourselves. These Are the Hurdles for Air Travelers This Busy Summer: If you’re expecting to take to the skies this summer, you should also expect lots and lots and lots of companionship. And a few hurdles, too. [CNN]
  • The Best Films of 2024, So Far: Our critics pick nine films that they think are worth your time on this long holiday weekend. [NYT]