THEME: Abandonment, Love and Thunder

Michael’s CIO (Check-It-Out) Report on the week just past — events, sarcasm, and global macro reflections

THEME: Abandonment, Love and Thunder

GL??BAL

BooJo:?Boris Johnson (nickname BoJo) has been?booed out of office and resigned as the UK’s prime minister. BoJo was brought down by: His party’s chief whip, appropriately named Chris Pincher, who has a record of groping; Another Conservative party minister (Owen Paterson) who broke lobbying rules to benefit companies that paid him;?High inflation ; Continued fallout from Brexit which exacerbated labor shortages and increased business operating costs; Breaking his own lockdown rules by partying during COVID (aka,?Partygate ); and Dozens of?Parliament members quitting ?the government after too many ethics scandals — What does all this mean for the world’s 5th largest economy? ???? ♂?The British currency, the pound, has been weak (but strengthened on the news); nonetheless,?recession and cost of living ?(inflation) may remain the UK’s largest social-economic challenges

Shinzo:?Former Japanese Prime Minister Shinzo Abe was assassinated by a man with a?homemade ?(iron pipes, duct tape, and wood) double barrel gun — Shock reverberated across the globe? — Fumio Kishida, the current PM, called the act “cowardly barbarism”

Fire & swim:?Sri Lanka’s President Rajapaksa and Prime Minister Wickremesinghe will resign after protesters?stormed ?and set fire to the PM’s home and went swimming inside the Presidential Palace compound — A severe foreign exchange shortage has limited imports of fuel, food, and medicine — On the verge of becoming a failed state — Watch other emerging markets for frailty

Dwelling:?Shipping containers are again piling up at California ports, with as many dwelling for?9 days or more ?as last November and container numbers nearly double what they were in January/February?? — This does not bode well for back-to-school and holiday shopping which start in a couple months???? ♂?

Laborious:?Demand “for labor continued to outstrip available supply,” according to the Federal Reserve Board. However, new unemployment claims are also higher, and social-economic growth concerns abound — Labor’s strong tide may be ebbing??but probably not enough for the Fed to not raise base interest rates later this month

GermaNeed —?Germany is realizing its overreliance on Russian gas as the main Nord Stream?pipeline is shut ?for 10 days scheduled maintenance and the government fears it may not be turned back on. Meanwhile:?Canada?is?returning ?a repaired turbine for the pipeline;?Putin?controls 20% of Ukraine, has destroyed much more, and continues with atrocities; Concentration on Russia is straining European budgets and pulling U.S. focus away from China, Taiwan, and the South China Sea

WHEALTH

Communicating:?We can help you institute a family governance system founded on shared values and factoring in all stakeholders; creating a forum for communication amongst family members, shareholders, and professional managers of the family business —?? ?? ?? ???? ?? ?? ???? ?? ?? ??Family meetings, councils, and constitutions

Sharing:?Empower your family to share the future. Managing family wealth is complex and ever-changing. Our unremitting search for opportunities helps strengthens and promote the long-term success of?your family office. As your priorities evolve, so do the solutions we fashion for you??

BIZNOMIC$

Dr. RoBOTnik:?Elon Mush [see my “Birds” comment ] is attempting to halt his $44 billion purchase of Twitter because the social media company has not satisfactorily proved that?spam?bot ?(i.e., fake) accounts are less than 5% of total users?? — Isn’t this just a case of an abandoned online shopping cart? #literally ??

SplitGame:?GameStop’s board approved a 4 for 1 stock split — But there is more than a stock split afoot as the CFO is replaced by the chief accounting officer, layoffs are announced, and a turnaround plan is hinted??

DrillBit:?Warren Buffett’s Berkshire Hathaway Inc. will buy Dominion Energy natural gas pipeline and storage for $9.1B. So far in 2022, Berkshire added to its Chevron holdings and has bought shares of Occidental Petroleum??

Macau?shuts all casinos for at least a week as city’s COVID Omicron outbreak worsens — This will severely curtail income for workers and gaming revenue for Sands China, Wynn Macau, MGM Resorts and others

CONTENT

Thin mints:?Richard Mille revealed the world’s?thinnest ?watch the RM UP-01 Ferrari — 1.75mm and $1.9MM — Shrinkflation maybe? ??

Love Shack:?Radio Shack, the long forgotten brand that was bought out of bankruptcy, is trying to fix the fact that most people don’t even know it exists by releasing outlandish?sex themed tweets ?from its Twitter account — Any publicity is good publicity???

PERSONAL

TIDE Spark 2022:?Led a fun roundtable last week at?The Investment Diversity Exchange ?event in Dana Point, California — discussed private real estate, private credit, private equity, venture capital, and hedged investments

adVENTURE:?Find us this week at a couple venture capital and community events in Los Angeles

Make it a great week??

Michael

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Michael Ashley Schulman, CFA

Partner & Chief Investment Officer

Running Point Capital Advisors ,?your family office

“We deliver custom investment solutions, innovations, and unique perspectives to you and your family.”

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Disclosure: The opinions expressed are those of Running Point Capital Advisors, LLC (Running Point) and are subject to change without notice. The opinions referenced are as of the date of publication, may be modified due to changes in the market or economic conditions, and may not necessarily come to pass. Forward-looking statements cannot be guaranteed. Running Point is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Running Point’s investment advisory services and fees can be found in its Form ADV Part 2, which is available upon request. RP-22-39

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