Posted 05/24/2020

CrowdCent Curation - No. 2

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Quality

Finance blockchain technology

Welcome to another week of CrowdCent Curation - helping you see the world the way it is, not how the misaligned media want you to see it. Enjoy the content below, and feel free to share the newsletter with family, friends…. anyone who may be interested:

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*“[Entropy] tells us what the world is, not what it should be. Entropy in a system is not intrinsically bad or good.” *- Scott E. Page

Translation: focus on the underlying, *unbiased *data/facts as the foundation for any thesis/argument/analysis

Finance

  • Navigating the Next Chapter of This Market Crisis [Video]

    • Recap: Unique interview with David Rosenberg, a highly respected economist/strategist, on the most probable path(s) forward for the economy and markets

    • Comment: Most economists look at the past and tell you what happened - not particularly useful in forward-looking markets. This interview focuses on the future, with a particular emphasis on the rising risk of insolvencies (insufficient cash flow to meet obligations) and related job losses (potentially permanent)

  • Capital Allocation & Economic Backdrop [Forum]

    • Recap: A conversation with our community highlighting the economic and investment landscape backdrop - how do you allocate capital in a 0% interest rate environment?

    • Comment: Clearly allocation varies by person/risk tolerance. The Fed is forcing people to shift portfolios out on the risk curve, and attempting to get people to spend vs. save (otherwise GDP collapses) in a fight against deflation. We likely need to see a big insolvency event to drive a sustained risk-off environment

    Blockchain

  • The Crypto Price-Innovation Cycle [Article/Video]

    • Recap: Even though crypto cycles look chaotic, over the long term they’ve generated steady growth of new ideas, code, projects, and startups — the fundamental drivers of software innovation

    • Comment: Expect technologists and entrepreneurs will continue to push crypto forward in the coming years - the current backdrop could not be any better

  • Travis Kling On The Future Of Bitcoin [Audio]

    • Recap: A surprisingly *excellent *interview covering the current financial market backdrop, the intertwined political landscape, and the rising interest in bitcoin / digital currencies

    • Comment: Bit long, but worth the listen - ties many disparate elements (politics, Fed, digital currencies, etc.) together and ultimately foots with our views on the facts of what is happening beneath the surface

    Technology

  • The Great Public Market Reckoning [Article]

    • Recap: Short & sweet article that highlights the bubble and tech facade (normal businesses *masquerading *as high-growth tech companies) in private markets

    • Comment: Simple article that highlights the power of narratives, FOMO (human behavior/psychology), and incentives. This all certainly happens (and is happening) in public markets, but the music eventually stops. Focus on gross margins as a proxy for 'pricing power'

  • Tech Landscape & Market [Forum]

    • Recap: Another community conversation, spurred by Jack (@jlm278). Fast followers in Tech tend to improve on the first mover and reap rewards. The current market environment is particularly conducive for Tech

    • Comment: Tech companies are the main ones investing and creating value. Be wary of tech posers (e.g. WeWork - real estate company posing as Tech) - gross margins are a key indicator (as The Great Public Market Reckoning highlights above)

    Thoughts, comments, additional things to share? Throw ‘em in the thread and/or Telegram…

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    Enjoy the long weekend!

    Best,

    Jason & Ryan

    Website: CrowdCent

    Twitter: @CrowdCent

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