Opening Comments
My last note was about the rough day I had last Wednesday. The most opened links were the snack to help you live longer and the best parenting lessons for successful kids.
One of my biggest contributors, Robert, sent me this note after my last post: “This is one of your funniest ever….sitting here laughing…we can all be a dunce every now and then as we get older….but this was really well written…”
He also sent me this chart:
My readers know I started using Eight Sleep about nine months ago and have improved the amount and quality of my sleep each night. As a result, I agreed to have them sponsor my newsletter. I only take sponsors if I use the product or service and believe in them. I have since sold numerous units to readers who are looking for a better night’s sleep. I received these texts from a reader regarding his recent purchase. Eight Sleep came out with the new model, Pod 5, this week. The main new feature is a blanket that also cools or heats to your desired temperature on your side of the bed. Also, the base has integrated speakers with noises to help you sleep or guided meditations guided by Andrew Huberman. I hope to try out the newest Pod 5 model soon. If you have a Pod 4 and want to upgrade, you can also just buy the Pod 5 Cover (without the Hub). You can still get discounts using the code: ROSEN.
Markets
United Healthcare Stock Crash
Prescription Drug Pricing
Best Concert Values Per Song
$12k/ft NYC Condo Sale
New Summer Locations for US Elite (not Hamptons)
Changing Malls (Services)
One World Trade Top Floors for Rent
Crazy R/E Tax Story in South Florida
Video of the Day-Refuse to Quit
This young man was told he would never make it in college baseball. He was not big enough, fast enough or able to throw it hard enough. Coaches told him he did not have what it takes to play Division I baseball. He outworked everyone and got a Power Five scholarship. The “never” language from the coaches motivated him to work hard to realize his dreams. Great story for kids today. Work ethic matters.
Failing Forward
In John Maxwell’s book, Failing Forward, he suggests that failure is an inevitable part of life and a crucial opportunity for growth and success. I am a big believer that we learn more from failure than from success. The book emphasizes the importance of embracing failure, learning from mistakes, and using them as stepping stones to achieve greater things.
I feel kids today are too coddled (including my own) and not building resiliency needed for later in life. This is a great two-minute video on the subject of allowing kids to fail. Struggling makes us appreciate success, and as parents, too many of us don’t allow the kids to fail. I have failed more times than I can count. I have been rejected from jobs, made investments that lost money, bombed on my first big presentation, yet kept coming back for more. My mother’s favorite quote was, “A quitter never wins, and a winner never quits,” and it stuck with me.
Some of the most successful people of all time failed miserably before achieving massive success.
Michael Jordan was cut from his high school basketball team, yet became the GOAT. He won 6 NBA titles and never lost in the finals. He changed the game of basketball and built the most iconic and successful shoe brand in history. "I've missed more than 9,000 shots in my career. I've lost almost 300 games. Twenty-six times I've been trusted to take the game-winning shot and missed. I've failed over and over and over again in my life. And that is why I succeed." Michael Jordan
Steve Jobs was fired from Apple, which he founded. He failed with NeXT and the Lisa computer, only to return to Apple to succeed beyond his wildest dreams. Apple has a $3 trillion market cap, making it the second-largest company in the world by that measure. “You have to be willing to fail…you got to be willing to crash and burn.” Steve Jobs
Walt Disney grew up in an abusive home, failed, and was fired from his ad agency. Disney’s first animation studio went bankrupt. He finally had a hit character, Oswald the Lucky Rabbit, and lost all rights to his creation due to a bad contract with Universal. Well, Walt Disney created something pretty special in the end. “All the adversity I’ve had in my life, all the troubles and obstacles, have strengthened me. You may not realize it when it happens, but a kick in the teeth may be the best thing in the world for you.” Walt Disney
Steven Spielberg was rejected twice by USC’s film school. I think Spielberg did just fine and was eventually awarded an honorary degree by USC and became a trustee of the university. He has been nominated for 22 Oscars and won three times. “Failure is inevitable. Success is elusive.” Steven Spielberg
The Beatles were rejected by at least five record labels, with one who said, “guitar groups are on their way out” and “the Beatles have no future in show business.” They played several years in pubs and town halls before they made it big. Well, the Beatles are the most successful band in history and were not defined by their failures. “You build on failure. You use it as a stepping stone. Close the door on the past. You don’t try to forget the mistake, but you don’t dwell on it. You don’t let it have any of your energy, or any of your time, or any of your space.” John Lennon
JK Rowling was divorced, bankrupt, and on welfare when she wrote her first Harry Potter book. A dozen publishers rejected her manuscript, and one finally agreed to publish it. They told her she needs a job as there is no money in children’s books. “You might never fail on the scale I did, but some failure in life is inevitable. It is impossible to live without failing at something, unless you live so cautiously that you might as well not have lived at all - in which case, you fail by default.” JK Rowling
Milton Hershey’s first two businesses went bankrupt (candy stores in Philadelphia and Chicago) before he made it big with a candy company called Hershey. “You can surmount failure. You can be battered down three times, as I was, and still come out on top.” Milton Hershey
Abe Lincoln had a great many failures before becoming the most consequential President in US history. He never stopped trying. “My great concern is not whether you have failed, but whether you are content with your failure.” Abe Lincoln
There are so many people who ultimately succeeded after failing miserably. Could you imagine how different things would be if many of our heroes allowed themselves to be defined by failure? I read this Fortune article about Kevin Hart, where he suggests you need to embrace rejection. In 2024, he made $81mm and was the highest-paid comedian in the world. His entertainment company, Hartbeat, was valued at $650mm last year. However, his success came after numerous setbacks: "I can't narrow it down to one," Hart told Fortune. "Not getting into comedy clubs early on in my career. Not getting chosen for comedy festivals early on in my career. Not getting movie roles that I thought were perfect roles for me. Not getting SNL when I thought SNL was the biggest and best thing for me."
When I speak with college kids, I suggest they learn from their mistakes and failures and not be defined by them. I am sure I will fail another couple of thousand times, but hopefully I learn and grow a bit more each time.
Quick Bites
Despite mixed economic data, it was a strong week for equities given the positive news on the 90-day tariff truce with China. For the week, the S&P was +5.3% and the Nasdaq +7.2%. The S&P is now +1.2% YTD, while the Nasdaq is -.5% on the year. The NAHB May builder sentiment index dropped 6 pts to 34 from 40, well under the estimate of no change and matches the weakest since December 2022. Retail sales slowed in April after the pre-tariff spending reversed. The Producer Price Index came in lower than expected and drove Treasury yields lower. Consumer sentiment slid to second-lowest on record as inflation expectations jump after tariffs. The 10-Year is now 4.44% and is down from 4.55% just days prior. Oil fell 3% as Trump suggested a US/Iran nuclear deal was in the works, but finished the week +2%.
Of note, after the close Friday, Moody’s downgraded the US credit rating from Aaa to Aa1. Moody’s cited, “Successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs.” No one has written more on the subject of debt, deficits, and entitlement reform than I have in recent years.
United Healthcare stock is under siege and has been a rough time for the company. The CEO was murdered in December of 2024, and the company has had serious troubles since. The crisis engulfing UnitedHealth hit a crescendo this week when CEO Andrew Witty stepped down abruptly for “personal reasons.”
UnitedHealth also swiftly abandoned its financial guidance, blaming skyrocketing medical costs. And then The Wall Street Journal dropped the hammer, revealing that UnitedHealth is under federal criminal investigation for possible Medicare fraud. The developments have stunned investors, triggering a dramatic loss of confidence. UnitedHealth’s stock has lost half its value – a staggering $288 billion – in the span of a month. Its share price plunged on Thursday to its lowest level since April 2020, during the height of the pandemic. Shares rallied 6% on Friday and it appears insiders are buying.
I am writing a report on how much my family spent on healthcare over the past year. The amount we spend is overwhelming. This CNBC article outlines why Americans pay so much more for prescription drugs. The U.S. consistently pays the most in the world for many prescription drugs. A 2024 report by the RAND Corporation found that drug prices in the U.S. were almost three times higher on average than in 33 other high-income countries. That’s largely due to the U.S.′ highly complex and fragmented reimbursement system and lack of national pricing control. Drug prices in the U.S. are generally set by pharmaceutical companies and negotiated by private insurers. That contrasts with many other nations, for instance in Europe, where governments negotiate directly with drug companies to cap what their state-funded health systems pay. Meanwhile, drug makers, for their part, defend higher U.S. costs by arguing that they help fund critical research and development — something Trump has long criticized for imposing an unfair burden on U.S. consumers. “Americans pay more for drugs than Europeans. Full stop. That is correct,” Emily Field, head of European pharmaceutical research at Barclays, told CNBC.
My readers know I am a value shopper. This article outlines which bands offer the best value for concert tickets. Looks like I am a bigger Drake and Usher fan than I thought, based on the cost per song. Concert Ticket Economics: The Shocking Amounts Fans Are Paying Per Live Song In 2025
Tariffs
Trump says he doesn’t want Apple building products in India: ‘I had a little problem with Tim Cook’
Love this idea.
Politics
Moody’s downgrades United States credit rating, citing growth in government debt
The growing burden of financing the federal government’s budget deficit and the rising cost of rolling over existing debt amid high interest rates were cited.
Supreme Court rules against Trump administration in Alien Enemies Act case
Trump says he will call Putin, Zelenskyy, and NATO members on Monday to talk ceasefire, trade
"Rogue" Devices Found Hidden In Chinese Solar Panels Could "Destroy The Grid"
How can you ever trust the Chinese government?
U.S., UAE agree on path for Emirates to buy top American AI chips, Trump says
Supreme Court hears historic arguments on birthright citizenship
Trump is planning a $45M military parade on his birthday
Get DOGE in there.
Middle East
Trump wrapped up his trip to the Middle East. I listened to the Saudi speech and thought it was good. Some summaries of the trip from Fox, CNN and Al Jazeera. It is always hard for me to truly understand the amount of secured investments from these trips, as they are exaggerated, but it was in the hundreds of billions of dollars or more. The White House claims $2 trillion. I am uneasy about any partnership with Qatar, given their relationships with terrorist groups. Concerning lifting sanctions on Syria, I would want to have the country closely monitored. Israel feels the new Syrian leader is a “terrorist,” for example. Concerning Iran, I have ZERO faith in anything that comes out of that country and would rather see their nuclear facilities reduced to rubble. I was disappointed that Israel was not part of the meetings. Trump’s trip clearly brings many of the leading countries in the Middle East closer to the US and away from China and that is a big win. Good discussion on the Middle East trip on All-In Podcast this week.
Top Iranian official says Tehran would forego highly enriched uranium in nuclear deal with Trump
Marco Rubio warns Iran 'at the threshold' of nuclear weapon capability as US-Iran talks continue
Trump administration working on plan to move 1 million Palestinians to Libya
Hamas Celebrates Shooting That Killed Israeli Mother en Route to Deliver Baby
Ye's song praising Hitler was pulled from most online platforms.
Other Headlines
Steve Cohen says stocks could retest their April lows, sees a 45% chance of recession
I am closer to this view than a strong rally from here.
JPMorgan Chase CEO Jamie Dimon says recession is still on the table for U.S.
Fed’s Powell cautions about higher long-term rates as ‘supply shocks’ provide policy challenges
Tech IPO market is finally showing signs of life
JPMorgan Forecasts Bitcoin to Outperform Gold in Second Half of 2025
Cisco reports earnings and revenue beat, issues better-than-expected forecast
American Eagle shares plunge 17% after it withdraws guidance, writes off $75 million in inventory
CoreWeave beats on revenue, reports more than 400% growth in first earnings after IPO
Stock went public on 3/28/25 at $40 and is now trading at $80/share.
Stock trading app eToro pops 30% in Nasdaq debut after pricing IPO above expected range
Coinbase says hackers bribed staff to steal customer data and are demanding $20 million ransom
NJ Transit engineers on strike after contract negotiations fail — wreaking havoc on commuters
In six different reports, I put in this chart. What does it look like in 10 years with AI and robotics? I would not want to be graduating from school in coming years. How many careers will no longer exist?
Much of U.S. at heightened risk for summer power outages, regulator warns
The North American Electric Reliability Corp. forecast shows the nation straining to keep up with soaring electricity demand.
UnitedHealth under criminal probe for possible Medicare fraud
Warren Buffett tells WSJ he stepped aside as CEO after finally feeling old
Tren de Aragua’s ‘Little Devils’ poster child busted after allegedly attacking disabled teen
AOC’s district sees 70% crime surge — more than double NYC average
What the hell is going on?
NOAA scrambles to fill forecasting jobs as hurricane season looms
Great advice. One of them is never shielding their children from rejection and failure which goes along with today’s theme.
Ancient reptile footprints upend theories when animals evolved to live on land
The 350 million year old fossils show characteristics similar to modern monitor lizards.
Movies with $400mm budgets scare me. Producers, I will do it for less than Cruise but won’t do my own stunts.
Dallas Mavericks were paid $33 million over 3 years by Chime for jersey patch
I had wondered what these sponsorships cost. If Bill Gates “donates” $1bn of his $200bn to the Rosen Report, I too will sponsor an NBA team.
Bald men are resurrecting the toupee — here’s what women think about the throwback style
Not me. I will shave my head if I lose more hair.
Health
How Chronic Disease Became the Biggest Scourge in American Health
Amazing charts and concerning information about the US population.
Why autism cases have risen so much since the ‘90s — and 3 common myths to ignore
This health startup is harnessing AI for quick, free diagnoses — with shocking accuracy
Doctors warn popular drink may increase risk of blood cancer
Real Estate
Two recent sales at 220 Central Park South were at very high prices on a per-square-foot basis. Unit 44b sold for $36mm or $12k/ft in late April after initially being sold for $27mm in 2019. Unit 45A sold for $82.5mm or $12.5k/foot in March. This building is stunning and has amazing amenities. I don’t care for the location or the layout of many of the units, but these are among the highest prices on a per foot basis in NYC. The best buildings in Miami are closer to $6,000/ft (Surf Club and Shore Club).
This Telegraph article, “The US elite have moved on from The Hamptons. Here’s where they’re going instead,” is interesting. From rural Wyoming to alternative Austin, and even a private Hawaiian island, these are the boltholes now favored by America’s uber-wealthy. The article outlines various other areas that are attracting attention from wealthy vacationers.
I thought this CNBC article about the way malls are changing in favor of services was interesting and shared by the Kimco Realty CEO. In a Monday interview with CNBC’s Jim Cramer, Kimco Realty CEO Conor Flynn described the changing business environment at shopping centers, saying “it’s all about services” rather than just traditional retail storefronts. “Services is all about in person, all about the e-commerce resistant type use, and that’s what’s driving vacancy rates to all-time lows,” he said, adding that service businesses are often related to health and wellness, like urgent care and veterinary facilities. He added that 80% of his company’s “new deal flow” is coming from service-oriented businesses. You can’t buy services on Amazon and need to go in person.
Some 1,100 feet in the air, almost as high as you can go anywhere in New York City, One World Trade Center is leasing office space for the first time — a striking milestone in Lower Manhattan’s long recovery. Ten years after the skyscraper opened, the 89th and 90th floors are now available to the highest bidder searching for square footage in New York’s increasingly crowded commercial real estate market. The family-owned Durst Organization, one of the developers, is aiming to command rents as high as $160 per square foot — a sum beyond anything seen in Downtown Manhattan and closer to the prices associated with prime office space in Midtown, where many of the city’s finance firms migrated over the past decade. I have no interest in an office in that location and nothing could get me to lease the top floors of that building, even at half of the asking price.
© 2025 The Rosen Report LLC. All rights reserved. Does not constitute investment, financial, legal, or tax advice. Consult with your lawyers and professional financial advisers. Rosen Report™ #786 ©Copyright 2025 Written By Eric Rosen.
We see this first hand in older condos in florida due to the new laws post the collapse of the Champlain Tower from a few years ago. The older condo market has been destroyed. Some buildings have 50% of the units for sale as people cannot afford the assessment which could be more than they paid for the unit 40 years ago. Couple that with skyrocketing insurance costs and it is chaos. Units for sale in Florida are + 500%+ since the COVID lows of 2022.
The nightmare of property reassessments is becoming all too common in the Carolinas, especially in Charleston and many of the older sea island communities. Long-time residents who have lived there for years are being displaced as they can no longer afford soaring homeowners insurance. Rising property taxes are only making things worse.