What we’re reading (5/19)
“Wall Street Falls For Third Day On Inflation Jitters Ahead Of Fed Minutes” (Reuters). “Wall Street's main indexes fell for the third straight session on Wednesday, as investors dumped riskier assets on fears that rising inflation could force the U.S. Federal Reserve to pare back its support soon.”
“Homebuyers Are Applying For Ever Bigger Mortgages As Home Prices Soar” (CNBC). “Sky-high home prices mean demand for ever bigger mortgages, but those prices may also be causing a pullback in homebuying overall. Mortgage applications to purchase a home fell 4% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was just 2% higher than the same week one year ago, when the housing market was just starting to come back after the pandemic shut it down.”
“Hedge Funds Increase Bets On Private Companies” (Wall Street Journal). “Hedge-fund firms are stepping up their presence in what has emerged as Wall Street’s hottest area: investing in private companies. Viking Global Investors LP, Maverick Capital Ltd., Lone Pine Capital LLC and others have taken steps recently to increase their investments in private companies. Viking, a large investor in private healthcare and biotechnology companies, is aiming to raise $1 billion from investors for its first dedicated private-equity fund, said potential clients. The new fund is expected to close on Oct. 1.”
“‘Big Short’ Investor Michael Burry Makes Bearish Bet On Tesla” (MarketWatch). “The investment firm behind Michael Burry, who shot to fame for predicting the mortgage crisis well before anyone else, has made a bearish bet against electric-car behemoth Tesla. According to a Securities and Exchange Commission filing on Monday, Michael Burry’s Scion Asset Management was the owner of puts against 800,100 Tesla shares as of March 31, with a value of $534 million. A put is a bearish option that gives the holder the right to sell the security at a set price over a specified period.”
“Half Of Single-Use Plastic Waste Produced By Just 20 Companies” (CNN Business). “Production of single-use plastics is set to grow 30% in the next five years, fueling their contribution to global warming and ocean pollution, researchers said Tuesday as they published a list of companies that manufacture and fund throwaway plastic. The first ‘Plastic Waste Makers Index,’ published by the Australia-based philanthropic Minderoo Foundation, calculated that 20 companies -- mainly energy and chemicals giants -- are the source of half of the world's single-use plastic waste.”
