Nelson Schwab

[Nelson Schwab @nelson_schwab]

THIS https://t.co/8D0Dr9qlC3

[Elon Musk @elonmusk]

The excess government spending is what causes inflation!

ALL government spending is taxation. This is a very important concept to appreciate.

It is either direct taxation, like income tax, or indirect via inflation due to increasing the money supply.

[Nelson Schwab @nelson_schwab]

@chamath The glyphosate destroys your digestive microbes... Nearly impossible to avoid exposure in the USA ...been slowly eroding our health for 50 years.. look at the connection between autism and gut health and glyphosate use...no one wants to admit it

[Nelson Schwab @nelson_schwab]

@maisiecora Yes, and often is the most delicious way to dine out at nicer places. Chefs have to people please with entrees but have more freedom with apps

[Nelson Schwab @nelson_schwab]

@TicTocTick Ok Boomer just tap the little microphone

[Nelson Schwab @nelson_schwab]

@realEstateTrent Lol - Rancilio Silvia will produce a shot of equal quality for under $900 https://t.co/lw7uYyQxm3

[Nelson Schwab @nelson_schwab]

@RealEstateMaxi Food sensitivity blood work -> elimination diet -> lactose training/ A2 dairy. Sometimes your body needs a reset.

[Nelson Schwab @nelson_schwab]

@Culture_Crit Ummm BA looks more like it did 100 yrs ago than anywhere in USA. Prove me wrong. BA is a beautiful city and many parts look/feel like Europe. Its better than Paris because the people are kind / welcoming + you'll find diverse cultural and culinary experiences. You should go

[Sahil Khetpal @skhetpal]

Billionaire investor Dan Loeb believes studying this one company is worth more than a 2-year MBA.

Surprisingly, it isn’t Amazon, Apple, or Berkshire Hathaway.

As one of the all-time best-performing stocks, it’s delivered 4,500%+ returns over the last 25 years.

Let’s dive in!

[Nelson Schwab @nelson_schwab]

@lifeof_scoop @GuyDealership Partly this, but also there's no annual registration fee for vehicles 10+ years, and the "flex" around here looks more like having boats, RV , 4x4 vs the new car. Also ppl have summer cars they only drive half the year. We're a sink for older cars

[Nelson Schwab @nelson_schwab]

@Culture_Crit 1972

[Chamath Palihapitiya @chamath]

Let’s keep things simple. We seem to be mean-reverting…

Lots of money printing + lockdowns during the pandemic artificially constrained and inflated so many things in the economy.

That said, the Fed is doing a very good job rn. These rate hikes have had their desired effect of washing out all of this extra liquidity. What’s left is a clearer sense of the natural state of the economy. And it’s actually in decent shape.

But what’s different? The biggest change from the pre-pandemic status quo is QT + the reshoring efforts to decouple from China.

On balance this probably keeps inflation hotter than the counterfactual (more resiliency—>less efficiency—>higher prices) relative to the past few years which probably also keeps rates above their historic average as well.

So what happens to equities? Nothing is a sure thing but the market seems like it wants to rip higher as people revise their baseline expectations to this new reality. Once they do, they will need to start looking for growth again and become less defensive.

Often times, the next direction in the market is that of “max pain” - and that direction, today, would be taking the market higher, catching many funds incorrectly set up.

Remember that most of the gains this year in equities thus far have largely come from a handful of companies. But most funds can’t get paid owning 6/7 companies so they probably have some ‘splaining to do!

So if inflation becomes “baselined” and the Fed stabilizes rates, it seems the next direction is higher.

Should be a fun Q3/Q4…

https://t.co/K9LIH41xd0

[Nelson Schwab @nelson_schwab]

@ssmith3088 @theficouple If next year Powell starts cutting b/c targets are met it will be a slowwww cut cycle and prices go up - if we see cuts b/c of economic catastrophe then different story.

[Nelson Schwab @nelson_schwab]

@ssmith3088 @theficouple I think ppl who want to buy now but only look, will see more value and affordability and join the market just like more ppl will "be able" to sell, and those sellers will also buy. Refinancing is a thing too. Home prices will go down if there is forced selling or glut of supply

[Nelson Schwab @nelson_schwab]

@ssmith3088 @theficouple That thesis presumes more will want to sell than buy, but a rate cut would bring more buyers to the table as well

[Nelson Schwab @nelson_schwab]

@ErnieBrownII Looks a lot nicer than "modern" style development

[Nelson Schwab @nelson_schwab]

@EverettStern1

[Nelson Schwab @nelson_schwab]

@chutneylife B/c you can re-finance in the future, you can deduct the interest, home values tend to appreciate, you can buy down the rate. What's the interest rate on renting? What are you left with at the end of the lease?

[Nelson Schwab @nelson_schwab]

@DegenDilly @Krikalitika No cheerwine AND no diet cheerwine??? I'm out

[Nelson Schwab @nelson_schwab]

@finance_hipster Not necessarily better, but often much better. Yes it can cost more to maintain, but pays much better than renting when you move out ..

[Nelson Schwab @nelson_schwab]

@AngryTomtweets @dagmaramach