I had the idea for our firm Social Leverage back in 2007. In November 2007 I wrote on this blog: ‘Social Leverage – Inning One and Impossible to Value’.
It’s almost 10 years later and we might be in inning 3. The leading stocks have never been harder to value.
Social Leverage is as I predicted the new financial leverage.
While the world levered itself to social graphs, the commodity indexes imploded.
Here is a chart of the Bloomberg commodity index over the last 15 years.
The iPhone and AWS (Amazon Web Services) sum up the acceleration in the digital boom and possibly the accelerated decline in commodities. The US digital ad market will grow by 16 percent this year!
Look no further to the divergences than my sweet son Max who is quite content with an iPhone, Uber, Amazon, Netflix, Snapchat, Google Docs and excellent bedding.
Unless Donald Trump can turn off this cloud thingie, I like my continued chances with digital assets and a life of social leverage.
Elsewhere in the world of nothing makes sense to old white people that made their fortune in commodities:
Mexico is up 17 percent since Trump vowed to wall it off.
The USA is up 6 percent since Trump threatened to wall us in.
The only thing I know is that Donald Trump will take credit for everything.
And finally, how is this Tim Cook still employed:
Also published on Medium.