Perspective is Expensive
6-21-26
Opening Comments
My last note was about how comical the flopping is during the World Cup. The piece got a lot of good feedback and my section on Steve Ross and Ken Griffin having a positive impact on South Florida drew a lot of attention. As a follow up, it appears that Steve Ross is expanding his empire in Boca and is close to buying the 1.7mm sq ft innovation campus known as BRiC. The most opened links were: The concerning video of Muslim men swarming a Christian preacher for reading the Bible, the lockup for SpaceX shares and the funny video of soccer players flopping. I received the most comments regarding the pictures of my daughter with the Knicks at the Today Show. This is the 899th Rosen Report and has grown solely due to your support. The next one is the big 900, a feat I never contemplated.
We always start with typos and in my last note, I inadvertently had Iran bombing Southern Lebanon rather than Israel. Although I believe my readers understood what I meant, I had to clarify.
In speaking with Kevin Lang of Lang Insurance, it seems some insurance companies are re-entering markets in California, New York, Florida, Texas and other states after a period of pullback. If you have Personal Lines HNW Insurance needs or want your current HNW insurance reviewed, Lang Insurance can help you navigate the best coverage at a fair price in all 50 states. Call 866.964.4434 and ask for Kevin.
I went to a great 3i Members lunch at Lulu’s in Sag Harbor on Saturday. There were about 18 people in attendance, and I made some new connections with interesting and successful people. One young man just sold his company and started another one that helps private equity portfolio companies gain efficiencies through AI. I saw some old friends and reconnected with Eric J Rosen, the imposter Eric Rosen. I wrote an article about him and other Eric Rosens who claim to be the real deal. I always enjoy 3i events and have made some amazing new friends through the process.
Happy Father’s Day to all the dads out there.
Markets
Stay Invested
Allbirds,Newbird AI, SmartbirdEducation Spending Relative to Enrollment Growth is Wrong
More Young Adults Living at Home Due to Affordability
Best High School Basketball Player to Never Make It
Bezos Indian Creek Mansion
US Homebuilder Inventory is Growing
Video of the Day-Overcoming Pain to Win a Tennis Match
Professional athletes can overcome so much. This is an AMAZING video of a recent match between Atmane and Humbert. Watch this short video in disbelief as Atmane could not walk due to cramping and refused to quit. Atmane could not serve overhead and could barely walk yet overcame ridiculous pain to win the match. I love examples of perseverance, and this one is amazing. He was literally lying on the clay in agony, yet he continued to eventually win the match.
Perspective is Expensive
When I was a little kid, my mother and I did not go out to fancy restaurants. We went to McDonald’s, Burger King or very casual local places. If we went to TGIF or Bennigan’s, I thought we were at a fancy place. I thought taking my high school girlfriend for 10c chicken wings was a night on the town. It was not until I started working after college that I learned about Michelin Stars and it began when we took clients out for fancy dinners.
When I was young, I did not interact with wealthy people. However, my grandmother’s brother, Uncle Sammy, was a successful businessman from Canada. He owned multiple Laura Ashley stores. We saw Uncle Sammy a couple times a year when he would come down from Canada and stay in his condo in Palm-Aire.
Sammy would take the family once a year to a French restaurant on the north side of Commercial Boulevard in Fort Lauderdale between US 1 and A1A. Although I do not recall the name, I remember anxiously awaiting the “fancy” meal. The waiters wore ties! How high end is that? Uncle Sammy was a very nice and generous man and always wanted me to make a big order. I recall having to dress up for the dinner as well. To me, this was the finest food imaginable 43 years ago. However, perspectives change, when all you were exposed to was fast food or TGIF! The “fancy” restaurant was in a strip mall in Florida, and given my perspective decades later, it would be a “C” at best with my vast food experiences now. Below is about the age I was when I first recall Uncle Sammy taking me to these dinners. Clearly, the legendary hair is a calling card.
As a kid, I had no experience or perspective. I thought of this story, as I coach a middle school golf team, and the directions to the recent match took me to East Commercial Boulevard, and I saw the strip mall where the restaurant once was, and I started to laugh.
As a matter of fact, this is a photo of my son, Jack, on his 11th birthday in the kitchen of Le Bernardin in NYC with the chef. He earned his 34th Michelin star on his 11th birthday. It was a slightly different upbringing than I had where I thought Bennigan’s was fancy. When I asked him what he wanted for his 11th birthday, he said a new guitar and dinner at Le Bernardin. Although my hair was far better than my son’s, note the lids we carried at about the same age.
The other thing Uncle Sammy did was buy my golf balls. If you recall, one of my earliest money-making schemes was diving for golf balls at the local course. I was in cahoots with the ranger and would split my take. It ended when an alligator chased me out of the water. Until that time, I was getting hundreds of golf balls a month, and Uncle Sammy would buy them from me when he came to our townhouse for dinner. I would keep the best golf balls on the side for Uncle Sammy, as he was always generous and could count on $25. In 1980, that seemed like a lot of money. Again, perspective changes everything, as today, $25 gets you a crappy glass of wine at the bar.
Quick Bites
Thursday saw a rebound after a tough trading day post Fed on Wednesday. Chip makers rallied and the Nasdaq outperformed finishing +2% and the S&P +1.2%. Intel led chip stocks higher, rising 9% after President Donald Trump said the company will partner with Apple on designing chips in the U.S. Fellow semiconductor names such as Nvidia and Micron Technology were also higher by more than 2% and more than 9%, respectively. The iShares Semiconductor ETF jumped more than 6%. However, Space X traded to $185/share after hitting $225 earlier in the week. The 2-year Treasury yield climbed another 2bps after the vicious sell off on Wednesday and finished at 4.18%, while the 10 year was largely unchanged. Oil was basically flat on Thursday. The good news on oil is that the price has fallen sharply in recent weeks and is now at $78/barrel for WTI (-21%) in a month. However, the 2nd chart shows the substantial short position in oil which can lead to a large rally if positive oil news develops.
When I look back at my biggest investing mistake, it was being underinvested in equities. This chart by Charlie Bilello outlines the length of bull and bear markets and why it is important to stay invested over the long run. Bull markets average +254% over 5 years, while bear markets are -31% over one year. Markets spend far more time growing wealth than destroying it. Why interrupting compounding is the biggest risk of all. Take a long-term view. Buy on weakness and hold quality.
Buying big drawdowns and holding onto stocks pays off in the long run Allbirds was a shoe company that was performing poorly, as the stock fell from $520 to under $3 in four years. They rebranded as an AI company and the stock took off. Allbirds surprised investors in April with plans to shift from making shoes to AI compute infrastructure and hardware. At the time, the company rebranded to NewBird AI and its market cap surged sevenfold. Last week, they changed the name again to Smartbird, hired a new CEO, and fully transformed into an AI infrastructure company. As a result, the stock was +39% on Wednesday. Clearly, the synergies between making ugly shoes and AI infrastructure make complete sense. I am reminded of the lunacy during the .com boom when every company changed their name to have a .com in it. I am sorry, failing shoe companies going into AI do not make sense to me.
I have been critical of many cities and states for the ridiculous spending on education, while getting awful results. This link discusses the fact that public school enrollment is +8% since 1970, while the total education staff is +84%, while non-teaching staff is +138%. My favorite saying from President Reagan was, “the nine most terrifying words in the English language are: “I’m from the government and I am here to help.” If you wonder why we run massive deficits in many states, the chart below is a great example of bureaucracy taking over and causing adverse outcomes. Remember, NYC now spends $43k per pupil or more than double the national average and gets awful results.
This is a concerning article from Realtor.com regarding the growing number of young adults living with parents due to affordability issues. A record 25.2 million adults under 35 lived with their parents in 2025. That’s nearly 1 in 3 young adults and higher than even the pandemic-era count—but the more surprising finding is just how many of them were working. “Roughly 70% of 25- to 34-year-olds living with parents are employed,” says Hannah Jones, senior economist at Realtor.com and author of the report. “That share held steady even as the overall co-residence rate has climbed—meaning the growth is coming from working adults, not people waiting to find jobs.” Among adults ages 25 to 29, 20.4% lived with their parents in 2025—nearly six percentage points above the rate at the start of the century, according to the report. Among 30- to 34-year-olds, the share reached 12.7%, nearly double the 7.1% share in 2000 and up from 11.4% in 2019.
I have followed high school basketball’s top players over the years. When I lived in Chicago, I attended some Farragut Academy games with Kevin Garnett and Ronnie Fields. Everyone knows Hall of Fame forward Garnett, who played on the Timberwolves and Celtics. However, I must tell you, he was not the best athlete on his high school team. Ronnie Fields was an absolute stud. So much so, that ESPN rated Fields the #1 player in the class of 1996 and placed him ahead of KOBE BRYANT! As a sophomore, Fields was the first underclassman ever to be invited to Nike’s Best of the Best All-American camp. Ronnie was 6’2” and could literally jump out of the building and had a 50” vertical leap. As a senior after Garnett graduated, Fields averaged 32.4 points. 12.2 rebounds, 5.1 assists, 4.5 blocks, and 4.0 steals a game. He was named Mr. Basketball for Illinois. Sadly, he never made it due to a host of off-the-court issues, including a car wreck that cracked vertebrae, a sexual assault charge, and a low GPA that prevented him from college play. For a man who jumped over 6’4” Sergio McClain to dunk and to have all those accolades, I feel he is one person I was sure would make it in the NBA. Your decisions matter, and Fields’ story is one that all young kids should hear about what could have been had he made better decisions. Fields speaks with kids about his mistakes. It is a valuable lesson. This three-minute video outlines the Ronnie Fields story and includes Kevin Garnett. There are plenty of dunk videos including jumping over players. Garnett said, “he was one of the best players that never made it.”
Middle East
Since the deal was signed with Iran there have been multiple incidents between Israel and Hezbollah and in one instance over 50 projectiles were fired at Israeli troops in Southern Lebanon on Saturday. At least five were killed in Israeli strikes on Southern Lebanon after the new ceasefire was signed. It is unlikely that Israel and Hezbollah will stand down. This link shows Hezbollah terrorists using civilian homes to launch missiles. They have also used hospitals and schools. It is clear that Iran and Hezbollah are trying to cause a rift between Israel and the US, and it appears to be working, as Trump and Vance have been far more publicly critical of Israel lately. The Strait closed again Saturday due to “ceasefire violations.” This article suggests intelligence agencies have warned Trump that Israel is “likely” to undermine the Iran deal. It is hard for me to know who fired first after the ceasefire, but I would not be surprised if it was Hezbollah.
I am a big fan of Douglas Murray, an amazing journalist who has spent a great deal of time in the Middle East. I find his take on the deal with Iran to be concerning. The Times of Israel calls the agreement “a catastrophic capitulation to Iran’s aggressors.” This article outlines the 5 passages of the US-Iran deal that worry critics the most. This article suggests fears about economy can undercut US leverage in Iran talks. Goldman suggested the Hormuz oil flows may recover only 70% from pre-war levels. “This normalization in gulf exports to pre-war levels might be achieved with a 13-million-barrel-a-day increase in Hormuz flows from current levels,” analysts including Yulia Zhestkova Grigsby wrote in a June 17 note entitled “70% of Pre-War Hormuz Flows Might Become the New 100%.” As my readers know, I have been critical of President Trump’s handling of Iran for the past couple months and called for him to cave. The headlines below have gone from bad to worse. Even Republican Ted Cruz is critical. However, Vance is in Switzerland for Iran talks, while Trump threatened “guardian angel” toll in Strait of Hormuz.
Iran Gets Major Economic Lifeline for Minimal Concessions in Initial Deal
The agreement delays the most difficult steps for Iran for later talks, while granting it crucial benefits.
‘We are a superpower,’ Iranian spokesman declares after Trump signs deal
“Iran has defeated two nuclear powers that some other countries were also supporting,” Esmaeil Baghaei said.
Trump hit by Iran ultimatum that could destroy just signed peace deal
Iran is threatening due to Israel’s actions in Southern Lebanon.
How Trump’s ‘Operation Epic Disaster’ turned the world against America
Donald Trump wanted to bring the Islamic Republic to its knees. He failed on all counts
Trump hits back at critics as Iran peace deal fuels debate over U.S. concessions
This is the country that Trump is dying to cut a deal with despite its awful treatment of its citizens. We will end up giving the Iranian leadership billions of dollars. I’m disgusted.
Oil prices little changed after Vance says more than 12 million barrels exit Strait of Hormuz
OPEC chief dismisses IEA supply glut forecast as ‘critical’ Strait of Hormuz reopens
Muslim Brotherhood TV host explains under what circumstances Christian girls can be raped.
“Allah allows Muslim men to rape non-Muslim women to humiliate them.” I want you to watch the short video. Are you serious?
Israel is condemned by the UN 173 times, while other countries and terrorist groups are not condemned? How is this anything other than blatant antisemitism?
US State Department warns Americans of growing security risks in historic region
Despite draft agreement with Iran, Americans are told to stay on high alert in Middle East
Politics
Fox News Poll: Most rate the economy negatively, including half of Republicans
Voter trust in the federal government is at an all-time low
GOP Rep. Steil pushes bill curbing members of Congress from prediction market betting
But trading stocks with inside info is still ok?
Walz approval rating craters to lowest level ever and trails Trump amid massive fraud scandal
Bewildered Biden gets left behind at Obama Center opening: ‘Where’s my granddaughter’
I was critical of Biden because he was a horrific President, and he was cognitively deficient during his presidency. Here is yet another example of his diminished capacity. Remember, the Democratic party, his family, and the media all knew of Biden’s deficiency and turned a blind eye.
Since 2000 Red State Incomes Have Risen 40% Faster Than Blue States
Policies matter and the income growth differential is substantial.
California ‘billionaire tax’ makes ballot despite opposition from tech moguls
California’s counting on an IPO tax windfall. Several factors are complicating the equation
Meloni, Trump trade barbs in escalating spat after G7
The two leaders, once politically close, have been bickering since the U.S. president claimed the Italian leader “begged” him for a photo at this week’s G7 summit.
‘Oil rain’ falls on Moscow after drone strike on refinery
I never thought Ukriane would still be battling four years into the war. I thought Russia was going to win in three weeks.
Moscow blanketed in smoke after Ukraine launches biggest attack yet
Other Headlines
Here are the five big takeaways from Kevin Warsh’s first meeting as Fed chairman
Jeffrey Gundlach says Fed’s Warsh is not going to be the ‘easy money’ chairman many hoped for
Memory crisis hits such extremes that ‘even Apple can’t be safe’
They are not. Americans, excluding the top 1% and even the poorest 20%, are much better off than their European equivalents.
Musk’s SpaceX stake is worth over $1 trillion. Here are the other billionaire shareholders
Income needed to afford a median-priced home has nearly doubled since 2020, report finds
Existing home prices have risen 54% since 2020 and now stand at about 5-times the median income
What the hell is going on here? What moron thought this was a good idea? The bad news is that this was taught in a public school. The good news is she was fired.
Iryna Zarutska’s Alleged Killer Could Walk Free. Here’s Why.
Under both federal law and North Carolina law, no person can be tried, convicted, or sentenced while mentally incompetent. Stabbed a woman 23 times on a train.
How does this happen?
Elon Musk blew the lid off the UK rape story where British girls were groomed, raped and abused by people who were predominantly Pakistani Muslims. There has been a massive cover up and now it has come up that at least 250,000 girls were involved. Nothing to see here folks.
He was released early from prison for murder just two years ago after serving 11 months for murder. I want judges and DAs held accountable. How many examples have I given about the system failing its citizens by putting the rights of violent criminals over the rights of law-abiding citizens?
How online porn has broken sex for young people
Concerning article from the perspective of a sexual health consultant.
Boston bartender shares eye-watering impact World Cup has had on her earnings
Obsession director $750k budget with $300mm box office is the hottest director today.
In my last note, I included this French tourist visiting America for his take on Buc-ee’s. He is back giving his assessment of Dallas. It is so funny and accurate. Thankfully, there are subtitles. He is difficult to understand.
Health
This exercise “sweet spot” is linked to greater longevity
With nearly 150k people in the study, it was determined that 90-119 minutes of lifting per week resulted in the most benefits. It resulted in a 13% decrease of dying prematurely and a 19% decrease in dying from heart disease. The risks of dying from neurological disease such as dementia fell by 27%.
Being Out Of Shape Is Far More Likely To Kill You Than Smoking
I’m an infectious disease doc — 5 way-too-common things people do that make me squirm
Poison centers link growing Benadryl abuse among teens to dangerous social media trends
If you want your kids to focus better, do 5 things—they’ll have an ‘easier’ time paying attention
Is Frozen Yogurt Better for You Than Ice Cream?
Most frozen yogurt is ultra processed and includes sweeteners, stabilizers, and emulsifiers.
Real Estate
Jeff Bezos has recruited a dream team of world-famous architects to create one of the most ambitious private homes ever built in the US, the Daily Mail can exclusively reveal. The Amazon founder’s mega-mansion will span three waterfront lots worth $250 million on Miami’s Indian Creek Island, the so-called Billionaire Bunker. A who’s who of elite designers more commonly associated with skyscrapers, luxury resorts and national museums will combine forces on the mogul’s dream digs. The trophy estate will replace two neighboring mansions that Bezos bought for a combined $147 million when he announced plans to relocate to Florida in 2023. While his ownership of 11 and 12 Indian Creek Island Road has been widely reported, the buyer of the adjacent empty plot, lot 9, was not publicly revealed when it changed hands last year for $105 million. The article infers the 3rd lot belongs to Bezos as well, as all three will be incorporated into one compound. This means he spent $252mm on the land alone. The ugliest house in Miami, which is in Indian Creek, now belongs to Zuckerberg. Let’s hope Bezos does not use the same architect.
A historic inversion has taken place in the U.S. housing market. For the first time in 40 years, home builders now have more than DOUBLE the inventory of existing homeowners. Builder inventory is now above 9 months, comparable to 2008 crash levels. However, existing owners are only at 4 months of supply (roughly normal). We've never seen this type of divergence take place before in U.S. real estate. The reason is the mortgage rate lock-in effect. Millions of exiting owners are sitting on low mortgage rates, preferring to hold homes off the market than sell at a loss. Meanwhile, builders don't have that luxury and are forced to transact in today's market at a 7% rate and still low demand. The question is: do builders regress to existing owners, or do existing owners regress up to builders?
© 2026 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™ #899 ©Copyright 2026 Written By Eric Rosen.
