{"id":1490113,"date":"2024-09-16T07:30:00","date_gmt":"2024-09-16T11:30:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1490113"},"modified":"2024-09-16T07:30:00","modified_gmt":"2024-09-16T11:30:00","slug":"hedge-fund-cio-europes-collapse-is-a-healthy-reminder-for-americans-to-stay-true-to-their-system","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/hedge-fund-cio-europes-collapse-is-a-healthy-reminder-for-americans-to-stay-true-to-their-system\/1490113\/","title":{"rendered":"Hedge Fund CIO: Europe’s Collapse Is A Healthy Reminder For Americans To Stay True To Their System"},"content":{"rendered":"

Hedge Fund CIO: Europe’s Collapse Is A Healthy Reminder For Americans To Stay True To Their System<\/span><\/p>\n

\n

By Eric Peters, CIO of One River Asset Management<\/em><\/p>\n

\u201cFor complex reasoning tasks this is a significant advancement and represents a new level of AI capability,\u201d wrote OpenAI, describing its latest model release. \u201cGiven this, we are resetting the counter back to 1 and naming this series OpenAI o1.\u201d Such is the pace of advancement (and hype) in AI that we need to rebase our calibrations. o1 answered 78% of PhD-level science questions accurately, compared to 56.1% for GPT-4o and 69.7% for human experts, which confirms that o1 is way smarter than I am.<\/p>\n

But for some reason I feel I\u2019m probably more intelligent, at least for now. Even if I couldn\u2019t tell you without the help of o1 the precise difference between smarts and intelligence.<\/p>\n

Overall: <\/strong><\/p>\n

\u201cFor the first time since the Cold War we must genuinely fear for our self-preservation,\u201d Draghi told reporters, working himself up into another \u2018whatever-it-takes\u201d frenzy.<\/p>\n

\u201cAnd the reason for a unified response has never been so compelling and I am confident that in our unity we will find the strength to reform,\u201d said Mario, far from confident, his long-awaited report on EU competitiveness hot off the press. But of course, the stock market provides objective, real-time analysis on national competitiveness, and the European benchmark equity index is now just slightly above where it was at the 2007 market high.<\/p>\n

Equities are priced in nominal terms though, and the EU consumer price index is roughly 52% higher since 2007. Which means that European equities have fallen 30% in real terms from where they were 17yrs ago (excluding dividends). Relative to where they were at the 2000 highs, European stocks are worth about half what they were nearly 25yrs ago in real terms. <\/strong><\/p>\n

By the same measure, Chinese stock prices are -67% in real terms from the 2007 nosebleed highs (+44% in real terms since 2000 \u2013 just before its WTO entry). And the S&P 500 is +60% in real terms from the 2007 highs (+107% from the 2000 highs). As a general observation, the US invents, China builds, the EU regulates.<\/strong><\/p>\n

And the stock market does an admirable job at indicating which of those activities you want to prioritize, if the goal is to aggressively increase overall national prosperity. But the EU\u2019s goal was never really that. That union was formed to avoid another disastrous continental war, which has been a recurring theme since well before the first Italian started shaving coins. <\/strong>The European project as it is currently constituted has narrowly achieved this primary objective, but at the cost of more chronic economic stasis. <\/strong>Naturally though, national weakness invites discontent from within and aggression from without. Which is where Europe finds itself today.<\/p>\n

It\u2019s a healthy reminder for Americans, as we enter our political season, to stay true to our system and to that which has led to our greatness. Innovation, invention, risk taking, entrepreneurialism.<\/strong><\/p>\n

Anecdote<\/strong><\/p>\n

\u201cWe have 4% of the world\u2019s population and the dominant economy \u2013 almost twice the size of China and 5x the next largest,\u201d said the Chairman, an American patriot, a public servant, realist, capitalist.<\/p>\n

\u201cUS stock market cap is over $50trln, dwarfing China at $11trln and Japan at $6trln,\u201d he continued. \u201cFor over five decades, the US has produced the next generation of great global companies.\u201d<\/p>\n

As Nippon Steel begs our politicians to buy US Steel for $14.9bln, Nvidia\u2019s market cap is nearly $3trln, and OpenAI is raising a fresh venture round at a $150bln valuation. \u201cMeta started in 2004 and employs 70k people, producing $134bln in annual revenue, much of it from abroad.\u201d Apple, Google, Netflix, the list goes on.<\/p>\n

\u201cSilicon Valley is the world\u2019s premier innovation hub and attracts the best and brightest from across the globe.\u201d Technology is helping lift the world\u2019s poor out of poverty at an unprecedented rate, and in today\u2019s hyper-connected world, every person who comes online, becomes a customer of a US tech company.<\/p>\n

\u201cGenentech and Amgen were once startups and are now industry leaders. Without the hundreds of billions in they\u2019d invested in R&D, we would never been able to develop the COVID vaccines in record time,\u201d said the Chairman.<\/p>\n

\u201cThe flywheel effects of being the world\u2019s innovation and growth engine are breathtaking. And are strongly supported by the tax code.\u201d<\/p>\n

Since the Revenue Act of 1921, capital gains have been taxed at a lower rate than ordinary income, providing a powerful incentive for individuals to invest in new, often risky ideas. Fueling an entrepreneurial culture, that is the source of America\u2019s prosperity, strength, power. <\/strong><\/p>\n

\u201cEnergy is vital to our enduring strength too, economic and geopolitical. We lifted US domestic oil production between 2016-2020 from 9mm barrels per day to 12mm, and natural gas production by 25%.\u201d<\/p>\n

Biden quietly continued Trump\u2019s energy policies, lifting oil production another 1mm barrels and natural gas 15%. \u201cHad we not, our military and economic adversaries would have more control over the future of America and our allies,\u201d said the Chairman.<\/p>\n

\u201cWe need a coherence across economic, national security, and energy policy that is centered on and builds upon all these strengths.\u201d\u00a0<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 09\/16\/2024 – 03:30<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/hedge-fund-cio-europes-collapse-healthy-reminder-americans-stay-true-their-system<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Hedge Fund CIO: Europe’s Collapse Is A Healthy Reminder For Americans To Stay True To Their System By Eric Peters, CIO of One River Asset…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1490113","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6fE5","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1490113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1490113"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1490113\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1490113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1490113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1490113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}