This is how negotiations work. It's game theory, specifically it's called "anchoring."
* Biden puts out a $2.7T infra proposal, knowing that won't fly, but in a hope to get lawmakers attached to the $2.7T number. The idea is "how much lower than $2.7T will it be."
/1
* GOP knows this, ofc, so they try to re-anchor with a $550B infra proposal, to get lawmakers attached to that number. They too know that won't fly. The idea is to change it from "how much lower than $2.7T will it be," to "how much above $550B will it be."
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/2
* Biden also knows this, ofc, so he starts tugging on raising taxes, knowing full well those numbers won't fly but anchoring on "capital gain tax increase and personal income tax increase."
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/3
This also makes negotiating easier by bundling ideas -- "I'll go down on A if you come up on B."
This has a jargony name, but let's stick to actual English.
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/4
The GOP knows this and will then anchor tax rates from "capital gain tax increase and personal income tax increase," to "no tax hikes at all."
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/5
Trading based on lawmaker game theory, which for anyone with actual market experience knows is just lawmakers using the media, is amateur.
Stuff changes with each new administration, and it's never even close to either party's anchor.
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/6
This is using your mind to know that what you are shown and what you believe do not have to be the same thing, unless you choose it to be.
I know a guy that presented this just one month ago. You know the guy too.
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/7
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CML members, we are soon to get community out to everyone, for now I'll share my thoughts from there, here.
Two narratives exist:
1. Getting over COVID, job growth, consumer spending, GDP growth will cause permanent inflation due to the collision with accomodative fiscal and monetary policy.
Higher inflation means higher rates which impact long term valuations due to discount rates.
2. Resulting inflation is temporary, just as COVID's recession was temporary; getting out is the start to another economic boom and a bull market.
$LFMD LifeMD Q1 2021 Revenues on Track to Exceed $17 Million, up 295%, with Subscriptions Representing More than 80% of Total Revenue cmlviz.com/article.php?ar…
2/n
$LFMD
Subscriptions are expected to generate more than 80% of revenue in the quarter, compared to about 63% in the same year-ago period.
3/n
$LFMD
Given that 80% of revenue is recurring/subscription, this feels more like a technology company than anything else.
295% growth now on a $68M run rate, this company should do $100M in revenue in 2021.