The Daily Alpha: Real Talk on Amazon Deflation, John Paulson and Jon Ossoff

Jun 21 2017 | 3:50pm ET

Today, we’re discussing the “Virus of Amazon,” family office wealth, John Paulson’s new gig, and the most important election ever.

Quotes of the Day

“That normally indicates that somebody thinks that they are not going to be earning as much as they were.”

Federal Reserve Bank of Chicago President Charles Evans has an Amazon problem. In fact, we’re now hearing suggestions that the ongoing struggle for the Fed to see any uptick from inflation may have to do with Amazon’s dramatic expansion across the United States.

You mean central bankers, who base their policy decisions on rules made in the 1930s, are waking up to the impact of technology on the labor forces and consumer prices?

No way! This should be a national holiday.

For Heaven’s Sake, even Fast Company is finally getting it. Amazon is – by definition – a competitive and corporate virus. Professor of Media Theory and Digital Economics at CUNY/Queens Douglas Rushkoff made the case this week that it’s time to split up Amazon. This is the best argument yet.

“Family offices are back to their historic levels of interest from the hedge fund manager public.”

That’s Alessandra Tocco, global head of capital introduction for JPMorgan Chase’s prime brokerage division. Turns out that things are going well for the ultra-rich.

There’s been a lot of wealth created at the top since 2000.

We wonder if the Federal Reserve realizes that they had a lot to do with this...

"We are pleased to welcome John to Valeant's board of directors. With his significant business and financial expertise, John will be a strong addition to the board. His experience will be especially valuable as we continue to execute on our transformational strategy to turnaround Valeant."

Good luck with that balance sheet, Mr. Paulson.

A sinking ship just rearranged the deck chairs. 

Valeant will be adding three new hedge fund managers, including John Paulson.

“As outside assets continue to erode, the running question for Paulson becomes more forceful: Why doesn’t he just convert to a family office?”

Wait, is this the reason why Paulson is joining the Valeant board?

"He needs to turn around his returns… so he’s trying to turn around one of the worst performing companies of the last few years?"

That’s David Tawil, the founder of Maglan Capital.

Paulson has seen a lot of money vanish from his fund in recent years.

The Financial Post offers the full story of what happened… and what’s next… for John Paulson.

“The race between Democrat Jon Ossoff and Republican Karen Handel has raised at least $56.7 million, according to the Center for Responsive Politics, which tracks money in politics.”

That’s from Business Insider.

Last night, the most important election in… ever… took place.

This is the most insane political ad in a very long time. It doesn’t matter what side of the aisle you sit on… we have lost our collective minds.

Here’s the thing… Ossoff collected more than $23 million from people OUTSIDE of his district. Hollywood was pouring cash into Ossoff’s coffers so that they could try their best to give President Trump a black eye heading into the tax and healthcare reform debate.

How did the guy with the enthusiasm of John Kerry go?

He called for “Campaign Finance Reform.”

Wednesday Reading List 

CNBC: Why now might be the right time to look at hedge funds

Business Insider: One of the largest hedge fund launches of the year is closing its doors to new money

Vanity Affair: Paul Ryan Bravely Insists He Hasn’t Forgotten The Rich

Globe and Mail: Hedge funds flood back into small-caps in record about-face

Bears Are Running Wild in Oil Markets

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Garrett Baldwin is the voice of the The Daily Alpha, the features editor for Modern Trader magazine, and the author of The Man with The Big Red Balloon. 

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