🍋 Swiftonomics

Tickets for Taylor Swift's next tour went live last week, and she even perfected supply and demand. Many younger consumers are willing to splurge what they saved during the pandemic for the experiences they missed under lockdowns.

November 24, 2022

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"If a fellow isn’t thankful for what he’s got, he isn’t likely to be thankful for what he’s going to get.” — Frank Clark

Good Morning and Happy Thanksgiving! Credit Suisse might not be a reverse meme stock anymore, but the bank warns it could lose up to $1.6 billion as its rich clients leave.

Google will lay off 10,000 underperforming workers in what’s been a rough year for tech. While the global economy has slowed, some now think it’s set to avoid a recession.

Most at the Fed think the pace of rate hikes could slow soon. And the most expensive drug in the world, a hemophilia treatment, was just approved by the FDA. The drug is called Hemgenix and costs $3.5 million a dose!

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1. Story of the Day: Swiftonomics

You don’t need to be a Swiftie to appreciate Taylor’s business acumen. The singer has fostered a cult following. Tickets for her next tour went live last week, and she even perfected supply and demand. Some of her fans are willing to pay over $40,000 for a live ticket!

Taylor Swift’s upcoming tour and ticket frenzy reflect the larger economy as a whole. As demand for limited supply skyrockets, some consumers are willing to pay more than they ever have for experiences.

Americans are sitting on record levels of cash. Many Millennial and Gen-Z Swifties lived at home during the pandemic and got to save money. But at the same time, younger Americans feel a sense of FOMO. Many younger consumers are willing to splurge what they saved during the pandemic for the experiences they missed under lockdowns.

Taylor Swift’s tour hasn’t escaped controversy. In the face of $40,000 tickets, some fans blame the third-party vendor Ticketmaster for price-gouging and monopoly. It’s ironic that in an era of Big Tech, price-gouging and monopoly are also concerns for the American economy as a whole.

Takeaway: Interest rates are rising and joblessness is increasing, but Swifties don’t care. Younger consumers especially are willing to pay a premium for the experiences they missed during Covid. It doesn’t hurt that many saved up the capital to deploy, too.

2. Markets Rundown

If you want access to Wall Street insider interviews, industry deep-dives, and investment ideas, check out our Insiders newsletter.

Stocks closed higher for the second day as the Fed signals smaller rate hikes.

Movers & Shakers

  • (+) Manchester United ($MANU) +26% because the publicly-traded soccer team is reportedly for sale.

  • (+) Tesla ($TSLA) +8% after the stock was upgraded by Citi, Musk wants to build another factory in Asia.

  • (–) Credit Suisse ($CS) -6% after the company announced it will lose over $1 billion from clients leaving.

Private Dealmaking

  • PayZen, a BNPL platform for the healthcare industry, raised $220 million

  • Rezo Therapeutics, a California-based biotech company, raised $78 million

  • CatalYM, a weight-loss drug that seeks to treat cancer, raised $50 million

  • Care.ai, an AI platform for hospitals, raised $27 million

  • Norfolk Southern will buy Cincinnati Southern Railway for $1.62 billion

  • Hellman & Friedman and Permira bought Zendesk for $10.2 billion

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Top Reads

  • How much more will Thanksgiving cost this year? (CNN)

  • Five economic trends to be grateful for (Axios)

  • The first question Bob Iger needs to answer at Disney (YF)

  • Apple and Twitter are on a collision course (CNBC)

  • Tesla stock analysts resist harsh market realities (Axios)

  • Citigroup faulted by regulators for poor data management (CNBC)

  • U.S. weekly unemployment claims rose more than expected (YF)

  • How a secret rent algorithm pushes rents higher (Propublica)

  • Why you procrastinate even when it feels bad (YT)

  • Rivian’s CEO created outdoorsy EVs - but now big automakers are coming after it (CNN)

  • The best countries to retire in (VC)

  • Apple’s stock could force China to reopen (YF)

4. Book of the Day: The Risk Paradox

Why do some people embrace risk while others avoid it at all costs? How do you know when to take a chance or when to walk away? And what happens after a risk crashes miserably, pays off handsomely, or lands in the muddy middle of life?

The Risk Paradox examines the stories of over one hundred notable risk-takers, in business and life. This unprecedented study provides fascinating, intimate views on risk and its meaning―before, during, and after the plunge.

The authors’ research reveals lessons and secrets of those who embrace risk as a part of life, taking us to the heart of the Risk Paradox itself: taking a risk is the least risky thing you can do to live a fulfilling life.

“A groundbreaking study that sheds light on the advantages of embracing uncertainty.”

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6. Daily Visual: Crypto Miner Stocks Down Bad

Oct 25 - Nov 22

Source: Axios

7. Daily Acumen

"Sociopolitical forces today can make humility feel especially dangerous, and even foolish.

Social media has stunted our ability to reinvent our thinking, because our ideas are increasingly cumulative.

Every opinion we’ve ever posted online is memorialized.

With such a well-documented history of beliefs, changing your mind on something important or controversial can feel like weakness and open you up to public criticism.

The solution to this is to take most of your opinions off the electronic grid."

Source: The Atlantic

8. Crypto Corner

9. Job Board

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10. Memes of the Day

 

 

 

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