Updated: Jul 9, 2020

Netflix, Disney +, Hulu and other streaming companies have boomed. The traditional television consumer began switching over to streaming content, and this ignited a surge in investments into OTT platforms.

Disney acquired BamTech, which was re-branded to Disney +. Dish purchased a majority stake in Sling T.V., a now major OTT service for traditional channels. Amazon developed Amazon Prime. Hulu gained mainstream popularity through its content.

Roku is now the top distribution channel through which consumers view OTT services. Apple and Samsung, after establishing themselves as market leaders in the smartphone market, sold pre-installed mobile applications, increased prices, and even received free advertising from their distributors.

Roku now controls upwards of 30% of the connected T.V. market in the United States, continuously building, testing, and launching new OTT specific offerings. Roku has returned over 300% since the beginning of 2019, down 5% YTD. I expect Roku to capitalize on their market positioning and gain significantly throughout the rest of 2020.

Updated: Jul 1, 2020

I don't know if it is just the idea or the term Robin Hood which makes me laugh, I think of a group of amateur investors grouping together, defying all financial logic, and making money in the process. The Robin Hood Trader is a new term for the flood of investors who now use the highly popular trading application Robinhood.

Looking at Google searches and filtering by Financial Markets, one can see a direct correlation between searches of Hertz on May 22nd and a drop in Hertz's stock price. It took 6 business days post-bankruptcy for Hertz to hit another bottom. Then, the now infamous, Hertz / Robin Hood push upward occurred over 3 days, returning around 550%, 1110% from the first bankruptcy low. This push correlated with an even higher amount of Google searching, then an eventual downward spiral over 3 days.

Global Financial Market Google Searches for Hertz (Red), GNC (Blue), Bankruptcy (Yellow)

6 Month Return Hertz (Red) - GNC (Blue)

As can be seen from the graphs above, GNC similarly took a downfall after posting bankruptcy. Now, 3-5 days later, Google searches are already shooting up significantly, even more, relative to Hertz prior searches.

Will the Robin Hood traders pull a second act?

Updated: Jun 30, 2020

I previously theorized that economic liberalism was the leading cause of increased urban crime rates in Latin America during the 1990s. Interestingly, there are various similarities between what happened then with what is happening in the United States today.

In the 1990s an influx of liberal economic policy transformed the economic landscape of many Latin American countries in two ways; economies were significantly boosted by privatization and deregulation of the market, while inequality and disparities between the distribution of wealth increased. In both Buenos Aires and Lima, there was a sudden - distinct - shock, which caused division between economic classes, higher poverty, and exponential spikes in rates of urban violence.

Seem familiar?

In these recent times of political and social unrest, some equities tend to correlate higher. I noticed Smith & Wesson Brands Inc. a firearm and outdoor product maker (up 80% since the middle of May). This company manufactured handguns for soldiers in the Civil War & also was the brand behind Clint Eastwood's character Dirty Harry. They recently re-branded themselves to the "American Outdoor Brands, Corp". This stock will continue to edge higher in the short-term as uncertainty continues around police reform.