Transformation, Valuation, Employment, and Deflation

Disruption to some of the world’s most important industries, deflationary pressure caused by scaling lower-cost businesses, and sustained low interest rates challenge traditional valuation models. Technological platforms, from blockchain-based businesses to energy storage to DNA sequencing, enable unprecedented disruption to business and economic models.

Interest…

Stupidity and Misery by Another Name

A National Investment Authority, an idea gaining traction among the administration, would be responsible for “devising, financing, and executing a long-term national strategy of economic development and reconstruction.”

This is not the job of a government; this is the role of the free market…

Interest Rates and Investment Strategy

Investors expected that the Fed would not only end its bond-buying program, but many believed it would also raise interest rates. While the Fed did agree to taper its bond-buying, essentially decreasing its $150 billion monthly bond-buying program by $15 billion per month, ending the…

We’ve got nothing to worry about. Inflation won’t be an issue, unless…

Nothing to See Here

Central bank independence and fiscal responsibility matter, even though the Western world is acting as if these rules no longer apply. Well, perhaps. …

Failures are not Failure

Failures are essential for success. The NASA flight director, Gene Kranz, who is famous for the Apollo 13 quote, “Failure is not an option” has been misunderstood. Mr. Kranz did not mean “don’t fail.” …

A Faustian Bargain

Decentralized finance (DeFi) can disrupt global finance — but only if Defi systems and central governments cooperate. Yes, sworn enemies cooperating for the greater good.

While each seems to be the sworn enemy of the other, ultimately, a cooperative relationship between decentralized and efficient (versus anachronistic and…

New technologies and unprecedented impact

Investors have been swept up in the notion of “philanthropic capitalism” and have targeted life-sciences as an avenue that can fulfill this benefit to society. While laudable in concept, this is non-scientific surrealism. “Hoped-for” is not a reliable business model, and most of the unrealistic…

Noise and Unpredictability

Signal versus Noise

Distinguishing what’s happening in the market and the direction of important market metrics — the signal — from garbled, inconsistent, and mostly useless data — the noise — is extremely challenging today. Information is contradictory and transient making data and critical events more confusing…

Ptolemy was an ancient astronomer who is credited with designing the first model of the solar system with the earth as its immovable center. The Ptolemaic system was “improved” over time to explain how heavenly bodies moved. But, despite the genius of this structure, there was one fundamental flaw, which…

Policy and Unintended Consequences

Technology is facing a substantial crossroads as policy changes with global resonance, such as China’s new crackdown on the country’s big tech companies (such as Ant Financial and Didi Global), the rising resistance to social media behemoths like Facebook, and the need for governments, whether in…

Nicholas Mitsakos

I am an investor, entrepreneur, writer, and lecturer.

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