This Week in … Investing
Innovation Week Review 22/2022
In December 2021, at the podcast recording "Year in Review," I was talking about the investing year 2022.
The last 12 years were a time of rising asset prices, low inflation, low-interest rate, and stable supply chains.
Two developments that I didn't expect in December 2022:
Jerome Powell is increasing interest rates in a weak post-pandemic economy due to the disruptions of supply chains
A war between Ukraine and Russia
Both developments have turned markets upside down.
It is not an unexpected effect that rising interest rates affect other asset prices. That's why I thought it wouldn't happen — at least in 2022 — but at a later time when society and the economy recovered from lockdown policies.
And then, with the beginning of the Russian/Ukrainian war, energy prices began soaring. Some say it is because of money printing, and others say that the disruptions of energy supply chains lead to an expectation of rising prices that become self-fulfilling.
However, the global economy is in a state of flux.
What were the major highlights of last week?
SPACs Are Warning They May Go Bust
SPACs gained fame in the last two years. Special Purpose Acquisition Vehicles are designed to collect capital into a listed empty corporate shell.
Once they have capital paid in, they start their search for a private company whose business model is a suitable fit. After both entities merge, the SPAC is a fully operating public company.
According to the article, at least 25 companies that merged with special-purpose acquisition companies between 2020 and 2021 have issued so-called going-concern warnings in recent months, according to Audit Analytics.
Amid crypto market turmoil, Andreessen Horowitz announces a $4.5 billion web3 fund.
Raising interest rates resulted in a slashing of crypto prices. The biggest crypto that went bust in the process was Terra/Luna.
But also, the Bitcoiners didn't get their 500,000 dollar price target in Q1/2022. The prices didn't go northwards, and they decided to move to southern territories. At the time of writing this article, Bitcoin cost 30,000 dollars.
The first writers started stating that the crypto craze was coming to an end, and it began the long crypto winter. It reminded me a bit of Game of Thrones — Winter is Coming.
And yet, amidst the biggest turmoil since 2018, a16z ventured out to raise more capital. What for?
Investing in the Crypto Eco-System
The Rise and Fall of Wall Street's Most Controversial Investor
Do you remember 2020?
First, the market crashed, and then the big pandemic equity bubble came out of nowhere.
In this upward movement, Cathie Wood was elected the most successful investor with a mesmerizing gain of 150% in her flagship ARK Innovation ETF.
Wood's investment style is betting on the synergy of novel technology, considering the huge potential for volatility.
Now two years later, as the asset bubble starts bursting, or at least letting some steam off, the ETF is back to prepandemic prices.
In January 2020, the price was 50 dollars, and today it is 45$ per share.
The peak price in October 2021 was 154 dollars per share.
Cathie Wood and her team still go for the next generation of tech and deep tech companies, although some analysts already explain why her strategy fails:
Wood’s willingness to make such calls so far ahead of reality — and so out of step with Wall Street’s old guard — has earned her a rockstar reputation among stonks-obsessed retail investors, making her a mascot for buy-the-fucking-dip Robinhood traders, some of whom have dubbed her “Cathie Bae” on Reddit.
June 10, 07:00 pm CET - Ivan Anz - Philantroinvestor - tbd
2 Podcasts from this week:
#77: Alexander Valtingojer - How to Invest in Digital Assets
1 Youtube Takeaway from this week
Books I am reading this week
Make a profound and lasting difference with your life. Start with understanding regenerative change.
It’s within our grasp to transform with a paradigm of systemic change and ensure we affect every level of life. The possibilities of personal, organizational, and even global evolution are right before us.
In a time when meaningful change is limited by error-filled practices conceived before quantum science, indigenous wisdom communities, and without an understanding of living systems, it’s time to re-think. Instead, embrace a theory based on the oldest and most proven way to create systemic change.
Combining over four decades of author Carol Sanford’s research and experience with rich traditions of Indigenous and lineage sources and quantum cosmologies, Indirect Worktranslates living systems understanding into a practical human technology for daily life at home and work. Through foundational wisdom and exercises for self-discovery, this guide will illuminate your understanding of the unlimited power of regenerative change and how we can become agents for a world that works for all alive.
You’re about to discover:
How to develop your consciousness and engage as a systemic change agent for the success of life’s systems working as a whole.
Strategies to evolve an organizational culture to one smarter and more courageous at tackling change.
Self-directed personal agency while considering the effects on other people and the world around you.
On-demand, higher-level thinking to process how complex systems and circumstances are unfolding in real-time.
Better methods to break old patterns of working that lead to degenerative outcomes.
Shift your mind to work with counterintuitive transformation consistent with how living systems work. Get Indirect Work for a path to self-motivated, evolutionary change in service to a greater whole.
Indirect Work: A Regenerative Change Theory for Businesses, Communities, Institutions and Humans by Carol Sanford
Best Quote From This Week
“At times, our own light goes out and is rekindled by a spark from another person. Each of us has cause to think with deep gratitude of those who have lighted the flame within us.” – Albert Schweitzer
Offers for the LSG2G Community:
Do you want help with your clinical trials? Book an appointment with Heike Schön
Do you want to use the podcast for your communication and marketing goals?
Let's schedule a Zoom Call:
Do you want help with your communication, business development, or financing goals?
Get in touch with CS Life Science Invest:
Support the Show:
If you enjoy the LSG2G Podcast Beginners Mind, you can help support the show by doing the following:
Become a Subscriber and get access to the recordings, tickets to our online and real-life events, or help with your contribution to developing the community further
Share the show and episodes with your friends and family with this Link
If you are interested in sponsoring the show, please feel free to drop me an email to discuss options.
These companies make the community, this newsletter, and the LSG2G Podcast possible, so go check them out and thank them for their support!
You are receiving the LSG2G-Letter because you either signed up or attended one of the events organized by LSG2G. Feel free to unsubscribe if you aren’t finding this valuable.
Nothing in this email is intended to serve as financial advice. Do your own research.