Cash is now king. Have it, hoard it, spend it on bargain, distress real estate, now emerging, e.g.
The story: Many office buildings can’t meet their monthly nut (expenses) because tenants have fled and variable rate mortgage interest expense has skyrocketed.
Three factors are impacting office:
+ People working from home.
+ The Fed raising interest rates.
+ Cities like LA, Portland, OR and San Francisco mismanaging their burgeoning homeless.
That LA story comes from The Commercial Observer. Click here.
The latest Economist has a piece:
Commercial-property losses will add to banks’ woes
Real-estate investors see a hellish-perfect-dumpster-fire-storm
Click here.
Gains in Tech
My biggest gainer this year is Nvidia. Here’s an overview:
Here’s Jensen Huang, Nvidia’s founder on Nvidia and AI. I understood about 5% of what he said. But it’s an impressive five percent.
Here’s last year’s which covers the six areas “Impact By Industry” in the chart above. This is the video I’d make every teenager in America watch. This is their future.
By all value metrics, Nvidia is way overpriced. Its P/E is 160. But on any “excitement/momentum” chart, it’s got a lot way to run.
Fun New Yorker cartoons
Who can resist?
It’s ironic that he’s in trouble because he actually paid someone.
In the old days, Donald had a reputation for not paying. A lawyer friend told me Donald once called him for a case. My friend said he wanted $350,000 up front. Donald asked, “Why up front?” My friend answered, “Because you never pay your bills. The next sound was dial tone, as Donald hung up.
A piano tuner was working in A Trump casino. My friend asked “Donald is not paying you. Why do you keep working for him?” The piano tuner answered “Because if I stop tuning his pianos, Donald will call all my other employers and tell them I’m a bad person and I won’t get any work.”
It’s April
As Saudi cuts production, oil is up. Buffett is right. Fortunately I still own a few oil stocks.
See you tomorrow, Tuesday.
Maybe you’ll catch me on Fifth Avenue holding a sign “Lock Him Up.”
Maybe not — Harry Newton
