🐂 Guru clout

Markets

Amidst seven consecutive days of stock increases on Tuesday, both the Nasdaq and S&P 500 experienced their lengthiest winning streaks since 2021. This surge was primarily driven by a rally in prominent technology companies and an increasing agreement that the Federal Reserve has concluded its interest rate hikes. Notably, Microsoft led the tech surge, reaching an all-time high due to robust demand for its cloud computing services.Sharp U.S. Hiring Slowdown Signals Cooling Economy Ahead.

Why the Fed Shouldn’t Get Credit for the Fall in Inflation

Is the decline in inflation largely attributable to the Federal Reserve's actions? The evidence within the economy suggests not significantly.

On the surface, inflation dropped subsequent to the Fed's somewhat delayed implementation of a rapid succession of rate increases. However, a closer examination reveals no direct correlation between the Fed's measures and the deceleration of inflation.

Primarily, inflation decreased due to factors beyond the Fed's control, such as the return to normalcy following the pandemic. At best, the Fed can be credited with preventing a further deterioration in economic conditions.

Finance

New book calls bs on Wall Street legend Ray Dalio

Is billionaire investor Ray Dalio truly a financial sage, or does the advice from your retired grandfather with two decades of experience at Fidelity hold equal value? Based on journalist Rob Copeland's portrayal of Dalio in his latest book, "The Fund: Ray Dalio, Bridgewater Associates, and the Unraveling of a Wall Street Legend," it seems the latter might offer just as much wisdom.

According to Copeland, the book delves into Bridgewater Associates, the globe's largest hedge fund, previously led by the self-promoting and renowned thought leader Dalio. Despite Dalio's image as a guru, fortified by Bridgewater's consistent positive performance, even during the 2008 financial crisis, Copeland exposes the inner workings of the company. He alleges that Dalio's touted radical management philosophy masked a toxic work environment and yielded mediocre outcomes.

While Bridgewater's investment strategy was famously enigmatic, Dalio claimed decisions were algorithmically determined by what he described as "timeless and universal" rules. He asserted that the organization operated under the principle of radical transparency, wherein employees proposed investment ideas subject to thorough collective scrutiny.

However, despite these claims, Copeland contends that Dalio's primary principle was his unilateral decision-making authority.

Allegations from former Bridgewater employees painted a bleak picture of the corporate culture, likening it to the unpleasant atmosphere of Hollywood during the McCarthy era. The company allegedly maintained a Politburo inspired by China to suppress dissent, and even employed James Comey, later the FBI director, who reportedly investigated an incident involving bagels. Reports suggest that instances of sexual harassment were overlooked, and incidents like a recording of Dalio shouting at a pregnant subordinate were allegedly shared among colleagues.

Moreover, allegations were made about an internal review of Dalio's financial decisions revealing a frequency of being wrong as often as right over the past decade, although Bridgewater denies the existence of such a review.

In response to Copeland's book, Dalio dismissed the claims as baseless and distorted. He labeled the work as a "tabloid book," citing its reliance on accounts from discontented former employees. Dalio also highlighted that the author had previously applied for a position at Bridgewater, which was unsuccessful.

Politics

Democrats had a great night campaigning on abortion rights

In Ohio, residents decisively supported the inclusion of abortion rights in the state's constitution, marking another success for advocates of reproductive rights since the overturning of Roe v. Wade last year. Meanwhile, in typically conservative Kentucky, incumbent Democratic Governor Andy Beshear secured re-election. Furthermore, Democrats maintained their control of Virginia's state Senate and gained control of the state House. For Democrats, the recent night of electoral victories stands as a tangible vote of confidence. This outcome comes on the heels of a recent poll indicating President Biden trailing former President Trump in most pivotal states for the upcoming 2024 presidential election.

Clothing

Shein wants to be valued at $90 billion

As per sources familiar with the matter speaking to Bloomberg, the Chinese fast-fashion retailer aims to achieve a valuation of $90 billion in its forthcoming US initial public offering. Despite being among the most valuable startups globally, this intended valuation significantly surpasses its previous $66 billion valuation from a funding round earlier this year. Following a surge in e-commerce sales amid the pandemic, Shein has encountered heightened competition from fellow Chinese retailers and increased scrutiny regarding its supply chain practices.

Food & Retail

This drink is doing amazing

Celsius, the energy drink manufacturer, has achieved remarkable success, marking its third consecutive quarter of triple-digit earnings growth. Recognized for its iconic white cans offering "essential energy" with innovative flavors such as "Tropical Vibe," the company's valuation skyrocketed from $280 million in 2018 to an impressive $13.4 billion today, as reported by GQ.

In a competitive landscape dominated by industry giants like Red Bull and Monster, Celsius has significantly disrupted the energy drink market. It has secured nearly one-tenth of the market share in the US, as per The Motley Fool, and its Q3 earnings report highlights its accomplishments:

• Claiming the top position as the best-selling energy drink on Amazon, boasting a 21.4% share, surpassing Monster's 18.6% and Red Bull's 13%.

• Ranking as the third-highest-selling energy drink in US outlets, convenience stores, and bodegas.

Celsius's resurgence stems from its transformation following a failed IPO in 2008. By rebranding itself as a health-focused energy drink endorsed by athletes, the company has successfully positioned itself as an ideal energy booster for a diverse range of consumers, from the midday office worker to the diligent college student.