June 17, 2021 Sign Up

By Overheard on Wall Street

"Get your facts first, then you can distort them as you please."

Good morning! After the marathon Fed meeting, JPow & Co announced that interest rates will be held flat this year (near zero) but signaled an increase sooner than expected as the economy recovers and inflation heats up. Bond purchases will continue as well until the Fed gets closer to its goals of “maximum employment” and sustained 2% inflation. (looks like the real inflation is crushing it, 5% in May '21 lmao)

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1. Story of the Day: The Latest Unicorn is... OnlyFans

OnlyFans, a site which is largely famous for adult entertainers charging "fans" for access to videos & photos, is in talks to raise funding that will value it at over a $1 billion. Unlike many tech companies, OnlyFans is actually profitable. It has 1.25 million creators and 130+ million users on its platform (130 million? That's more than 1/3rd of America's population!) It handled more than $2 billion in sales last year, which means it had ~$400 million in revenue (since they charge a 20% fee to creators). It is also growing at a staggering 100% year over year.

While OnlyFans is deeply rooted in adult entertainment, they want to become a place where a broad range of celebrities can connect with their fans. Celebrity users include boxer, Floyd Mayweather and rapper, Cardi B. Apparently athletes are a genre they are seeing a lot of growth in. (Can y'all imagine Tom Brady on OnlyFans promoting his TB12 method?)

Short Squeez Takeaway: The pandemic has killed many businesses but also given life to many such as OnlyFans. Although the site was founded in 2016, it really blew up last year. Creator economy and companies are heating up: Cameo, a website that lets celebrities send personalized messages to fans, was also recently valued at more than $1 billion after an investing round from SoftBank. OnlyFans future is OnlyBright.

2. Markets Rundown

• Stocks ended lower, after the Fed signaled that policy makers expect rates to rise earlier than previously expected by penciling in two increases by the end of 2023

Movers & Shakers

• (+) Sunrun ($RUN) +11% after Morgan Stanley reiterated its overweight rating and called it “the most compelling clean energy stock” across their coverage.
• (+) SoFi Technologies ($SOFI) +5% after Rosenblatt initiated coverage with a Buy.
• (–) Roblox ($RBLX) -4% after the company reported a decline in users from April to May.

3. Top Reads

4. Book of the Day: Super Learning

A bestselling author, Peter Hollins, studied psychology and peak human performance for over a decade. He has helped countless individuals unlock their full potential.

In his book, Hollins explains how our memory works and how to make it work for you, why Einstein loved to play violin while working and the learning mistakes you are probably making right now.

Recommended for anyone wanting to outpace others, destroy the competition, and get where you want to go faster.

5. Daily Visual: US Covid-19 Death Rate Slows

Source: Axios

6.  Daily Acumen: The Feynman Technique

“If you can’t explain it simply, then you don’t understand it well enough.”

This quote gets thrown around a lot and its often attributed to Albert Einstein. No one knows if Einstein actually said it but reversing it gives us a pretty powerful piece of study advice. If you want to understand something well, EXPLAIN IT.

One of the most effective study techniques is to teach what you’re learning to someone else. This technique was named after the physicist Richard Feynman because in addition to being a great scientist, Feynman was also a great teacher and a great explainer. He was famous for tirelessly working through equations until the concepts he was working were easy to understand.

Take the time to boil down complex concepts and put them in a simple language that other people can understand. This will help you become a subject matter expert on the topic and commit the concept to your memory.

7. Memes of the Day

via: @unstructuredcapital

via: @securethepromote

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