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BlackRock and Vanguard Are Less Than a Decade Away From Managing $20 Trillion

BlackRock and Vanguard Are Less Than a Decade Away From Managing $20 Trillion

BlackRock and Vanguard Are Less Than a Decade Away From Managing $20 Trillion
This article by Rachel Evans, Sabrina Willmer, Nick Baker, and Brandon Kochkodin for Bloomberg may be of interest to subscribers. Here is a section:
It’s closer than you think. BlackRock Inc. and Vanguard Group — already the world’s largest money managers — are less than a decade from managing a total of $20 trillion, according to Bloomberg News calculations. Amassing that sum will likely upend the asset management industry, intensify their ownership of the largest U.S. companies and test the twin pillars of market efficiency and corporate governance.

None other than Vanguard founder Jack Bogle, widely regarded as the father of the index fund, is raising the prospect that too much money is in too few hands, with BlackRock, Vanguard and State Street Corp. together owning significant stakes in the biggest U.S. companies.

"That’s about 20 percent owned by this oligopoly of three," Bogle said at a Nov. 28 appearance at the Council on Foreign Relations in New York. "It is too bad that there aren’t more people in the index-fund business.”

Eoin Treacy's view
ETFs are cost effective and offer access to market performance, with a mild underperformance, for an increasingly wide number of countries, sectors, currencies, commodities, bonds and real estate.

For ETF providers the most expensive fund to launch is the first one. Every one after that is simply an iteration of the first based on a different basket. Therefore, they have an incentive to create as many as possible in the hope that a few will capture the imaginations of investors and be wildly successful at accruing assets.


Tencent Seen Doubling by Stock-Picker Already Up 6,000%
This article by Charles Stein for Bloomberg may be of interest to subscribers. Here is a section:
Fueled by fast-growing sales, Tencent and Alibaba have almost doubled in share price this year, and both have market caps above $400 billion even after slipping recently. Their parallel climb explains in part why Leverenz’s fund has returned 31 percent in 2017, on track for its best year since 2009.

The stocks come with political risks. The Chinese government in September made creators of online message groups responsible for managing information within their forums, a move that chilled users of WeChat, Tencent’s popular social network.

“If you are an investor in Tencent you are basically betting on management’s ability to adjust to policies,” Duncan Clark, chairman of technology consulting firm BDA China Ltd., told Bloomberg News at the time.

Eoin Treacy's view
Privately held companies will be tolerated and even prosper in China provided they accept the role of ensuring the permanence of Communist Party rule and toe the Party line. Jack Ma saying today that China benefits from the stability of a single party system can be viewed in that vein. “Private” companies are increasingly organs of central propaganda and are expected to assist both in monitoring and influencing the public.

The Future of Nickel: A class act
Thanks to a subscriber for this report from McKinsey which may be of interest to subscribers. Here is a section:
A section from this report is posted in the Subscriber's Area.

Eoin Treacy's view
A link to the full report is posted in the Subscriber's Area.

The LME signaled a couple of months ago that it is assessing whether to split the nickel contract in two. The decision will hinge on whether they believe battery demand will in fact ramp higher as many of us expect. The demands from the emerging battery sector are much more stringent in terms of delivery specifications than are currently the norm for LME warehouses so there is a compelling argument for the creation of a new contract.

Elon Musk's Boring Company shares potential map of LA tunnel network
This article by Nick Lavars for Newatlas many be of interest to subscribers. Here is a section:
These tunnels would essentially function as fast freeways, where vehicles and passenger pods latch onto electric skates and get shuttled along at up to 150 mph (241 km/h). There would on and off ramps every mile or so, each with a dedicated side tunnel to avoid logjams. These tunnels could also form part of a Hyperloop system over larger distances between cities.

While all of that remains a ways off, the company is making progress on its proof-of-concept tunnel. Photos shared by Musk in October showed a fully concreted tunnel complete with tracks and cables that he said at the time measured 500 ft (152.4 m) and within three of four months would stretch to around 2 mi (3.2 km).

Eoin Treacy's view
I have to admit that my first reaction to the Boring Company’s announcement of tunnels for the LA area was something to akin “Has anyone told Elon Musk that Los Angeles is prone to earthquakes?” After all the idea of tunnels is all well and good until they turn into coffins.

The rejoinder today would be that tunnels are immune to wildfires. Less that 8 miles from where I live the mountain between here and the Valley is on fire, which makes me glad I work from home and on flat ground. A lot of the people who pay city taxes in Los Angeles live in the areas currently burning, suggesting the Boring Company may get a leg up from the fires regardless of the safety concerns inherent in its plan.


Eoin's personal portfolio update

Eoin Treacy's view
One of the requests subscribers have asked for most over the last few years has been to have an easy way to find what positions I have open at any given time. Therefore, from now on I will update this post with any open positions I have on a daily basis.

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