Opening Comments
My last note was about three NYC restaurant reviews. The most opened links were the DB Cooper robbery mystery story and the question to ask yourself while easing into retirement (from a Harvard professor).
I hope everyone had a great Thanksgiving with family and friends. The Rosen family started the day by volunteering at a Jewish charity to serve a Thanksgiving meal to families in need. Almost 600 elderly people came this year. We were required to wear fun hats and we ended up serving and lending a hand for a few hours on Thursday morning. It felt good to assist the elderly who had me running around like a crazy person. Lots of special requests for food and to-go bags.
My sister sent me this chart and thought my readers would enjoy it.
Markets
Dangerous Food in the US
Addictive Social Media and the Impacts
Biggest Imports from Canada, China and Mexico
$55mm Home Sells in West Delray. WOW!
Older South Florida Condo Troubles
Meatpacking District in NYC Ain’t for Meatpacking
Macklowe’s One Wall Street Sales Issues
Picture of the Day-My Son Got Into Wake Forest
The college process today is incredibly nerve-racking. Admissions have become so competitive in recent years putting high school seniors through the wringer. After visiting 10 schools, my son Jack decided that Wake Forest was his top choice and applied through ‘Early Decision I’ for admission. We are excited that Jack was accepted and will start in the fall. Jack is a great young man and is looking forward to starting his college career. If anyone has kids or friends at Wake Forest, please email me at rosenreport@gmail.com (put “Wake” in the subject line) with introductions. Jack wants to build up a network so he can hit the ground running in the fall. Congrats, Jack Rosen. You are a Demon Deacon. Your family is very proud of all your hard work.
Networking to the Nines
I would say one of my core competencies is working the room and my ability to connect with people. I feel my network is elite because I treat it like a job. I am always following up and trying to keep my network fresh. However, a combination of 30 years on Wall Street, the Rosen Report and my involvement in 3i Members has taken my network to a new level that I did not believe was possible. For those who do not know, 3i Members is a networking and investment club filled with successful business leaders from across the world. The biggest chapters are the NY tri-state and South Florida regions. 3i investors have invested a total of over $500mm across 45 of deals through the 3i network. I have been a dues-paying member of 3i since the beginning in October 2021.
The inaugural 3i Members Annual Summit was held in New York City on November 20-22nd. As an active member of 3i, I’ve served on the Investment Committee and the Annual Summit Committee, moderated panels, interviewed members for podcasts and introduced dozens of members to the community through my network. Although I was excited about the summit, it FAR exceeded my expectations. The young team of hard-working 3i employees hit it out of the park.
One of the big hits was two 1-hour breakout sessions. They had 8-10 people in the room, and I led two of the sessions. Remember, the 3i community is comprised of successful and accomplished business leaders, including Wall Street professionals, hedge fund managers, venture capitalists, private equity and real estate investors, and founders. The discussions were amazing. Great and healthy banter and debates about important topics. Learning from your peer is inspiring and humbling.
The cocktail hours provided great opportunities to connect with new friends and the dinners were solid as well. The team did an amazing job of seating you with new people and giving you opportunities to expand your network. I also reconnected with old friends that I had not seen in over 10 years and look forward to seeing them more regularly again.
Approximately 250 of the 550 members came to the sold-out summit. Members from London, NY, South Florida, San Francisco, LA, Atlanta, Chicago, Denver, Austin, Houston, Atlanta, Toronto and other cities were represented.
There was a poker tournament that raised $100k for charity, a ping pong tournament, mini golf, wine tasting, spin class and much more. The action was non-stop and the reviews from the members were remarkable.
The best part of 3i is the membership and community. I socialize quite a bit with the members through dinners, drinks, golf, padel, investments, phone calls and even vacations. If you have an interest in 3i, reach out to me via rosenreport@gmail.com and I can connect you or contact them directly through this link. I met a bunch of readers of the RR that I did not know who joined 3i after I mentioned it in the report. It is always great to connect with readers. If expanding your network is important to you, you must take the initiative and start building it out properly.
I re-connected with the imposter Eric Rosen at the 3i event. I wrote an entire report on the topic of imposter Eric Rosens. Make no mistake; I am the REAL Eric Rosen.
Here’s a funny story: my wife packed my clothes for the trip, and due to a mix-up, I ended up with two workout shirts but no workout shorts. Determined not to skip gym day, I hit the weights wearing a gym shirt and a pair of corduroy pants. I looked ridiculous, and everyone had a good laugh about it
Bold Indicates my thoughts or ideas. The regular type is from the article.
Quick Bites
November was the best month of the year for stocks as the market digested the Trump victory and Republican sweep. Lower regulations, increased M&A activity, and lower tax rate hope drove markets higher. On the month, the S&P finished +5.7% and the Nasdaq +6.2%. The best-performing sectors for the month were Consumer Discretionary, Industrials, and Financials, while the underperformers were Information Tech, Healthcare, and Materials. Bond yields finally retreated posted the Bessent nomination with the 10-year yield down to 4.18% after being 4.45% just two weeks prior. Crypto rallied sharply with Bitcoin +37% in November and approached $100k for the 1st time, as the Trump administration is very pro-crypto down to the nominee for Treasury Sec.
I have written about ultra-processed foods in the US and the failures by the FDA to properly educate and protect Americans. America is an overweight and obese country contributing to major health issues. As of 2021, half of adolescents and three-quarters of adults were obese or overweight in the USA. The quality of ultra processed American fare — especially President-elect Donald Trump’s beloved Big Macs — is receiving new scrutiny thanks to Trump’s nomination of Robert F. Kennedy Jr. to lead the Department of Health and Human Services. Kennedy has made headlines for calling legal food additives “poison” and criticizing the ingredients in Froot Loops, but long before he campaigned for president, sites like Food Babe were highlighting alarming differences (open this link) in American ultra-processed foods versus their overseas counterparts. Travelers have noted on social media that they have lost weight visiting Europe, even while eating seemingly “unhealthy” foods like bread and cheese. And while it may be that they are walking more on their vacation — or eating smaller portion sizes — many have speculated that the difference comes down to the quality of the food they’re served. I am cautiously optimistic that this administration can make some changes to the FDA, paving the way for healthier products to appear on grocery store shelves. Jason Karp is an impressive American hedge fund investor and entrepreneur who talks about the ridiculous food differences on this link. The FDA has failed Americans on many fronts and Jason is very articulate with examples. Watch this 30-second video of Jason discussing the difference between Fruit Loops in the US and Canada. Eye-opening.
I have a confession to make. I think I am addicted to Facebook and Instagram Reels. I am 55 years old yet one hour or two hours before bedtime, I watch these videos. The algos know exactly what I want to watch (surfing, food/restaurants, fishing and movie clips). This article shows time spent on line by adults jumped one hour in the UK in 2024. Adults are spending an average of 4 hours and 20 minutes each day online across smartphones, tablets and computers in the U.K., according to figures from Ofcom’s annual Online Nation report diving into consumer digital habits. If adults are addicted to social media, think about what happens to kids. Jonathan Haidt, author of “The Anxious Generation,” painted a bleak picture at the 3i Summit regarding the impact of social media on children. Haidt highlighted a global decline in standardized test scores beginning around 2012, coinciding with the rise of social media. He also pointed to a significant increase in psychological disorders among college freshmen during the same period. Undergrads diagnosed with a mental illness exploded again starting in 2012. Haidt’s findings are the issues are seen mostly in North America, Europe, and Australia and kids are facing growing anxiety and depression as a result. Self-harm, especially in girls has exploded. My point is simple. Social media is addictive and dangerous. Even I have fallen victim to it. Gen Z spends 6 hours a day online. What could go wrong? However, the data on kids is not found in China given they have so many restrictions on social media. Another article about Haidt and the social media war. Coincidentally, Australia just passed a law banning social media for under 16-year-olds.
With all the tariff discussions, I thought this WSJ article on the topic was timely. Avocados. Tequila. Laptops. Lumber. These are some of the common items America buys from Canada, Mexico and China. There are also other, perhaps less expected items: America purchases a lot of frozen french fries from Canada. If Donald Trump carries through on his new tariff threats, consumers could see prices rise on lots of basic items for their everyday lives.
Election
Get to know Donald Trump's Cabinet: Who has the president-elect picked so far?
The Local Sheriffs Gearing Up to Help Trump Carry Out Mass Deportations
Harris never led Trump, internal polls showed — but DNC officials were kept in the dark
Marc Andreessen Describes "Alarming" Meeting With Biden Admin That Prompted His Trump Endorsement
M must-read article on Andreessen and his interactions with the Biden Administration. For decades, Andreessen has supported Democrats, including Bill Clinton, Al Gore, John Kerry, Barack Obama, and Hillary Clinton.
Although I have been extremely critical of government spending and waste, I am concerned about the challenges DOGE will face in cutting costs.
Texas could bus migrants directly to ICE for deportation instead of to sanctuary cities
Middle East
Israel and Hezbollah trade accusations of ceasefire violations
Hamas terrorist opens fire at Israeli civilian bus in West Bank; 8 wounded, 3 seriously
Biden administration advancing $680 million arms sale to Israel
Mass arrests at Macy’s Thanksgiving Day Parade as anti-Israel protesters block procession
Jewish children, teens violently attacked in London: 'streets are no longer safe'
FIRE HER. Nope. She had to take a “multicultural training” and a note in her file.
Other Headlines
These economists say artificial intelligence can narrow U.S. deficits by improving health care
As retailers enter the holiday shopping season, the winners are pulling away from the pack
Shares of key chip suppliers jump as U.S. reportedly considers toned-down China curbs
Elon Musk says there's substantial ignorance about America's national debt
I write extensively on this subject for a reason.
Leaked Morgan Stanley documents reveal 1 in 4 ultrawealthy clients raise a red flag
I view MS as a top-tier firm with JPM, GS, BAC/ML. These articles about the private bank of MS are quite concerning.
Shares of drone maker Unusual Machines soar after Donald Trump Jr. joins advisory board
World's largest gold deposit found - and it could be worth $80 billion
Hard to argue with Buffett here.
NYC is now home to over 58K ‘criminal’ migrants — including more than 1,000 gang members
The Biden administration’s idea of open borders was the worst decision in his four years. Listen to Hillary Clinton in 2008 on the subject of illegal immigrants in this 30 second video.
Ritzy NYC neighborhood rocked by surging crime, including daylight carjackings and brazen robberies
You pay a lot of money and taxes to live in NYC but the conditions are not worth the price. I voted with my feet 7.5 years ago and have not regretted it.
Suspected Jordanian terrorist arrested for trying to cross US northern border
Navratilova condemns New York Times for calling female athletes ‘non-transgender women’
Ex-Google CEO Eric Schmidt warns perfect AI girlfriends could worsen loneliness for young men
Amgen says obesity drug caused up to 20% weight loss after a year-no plateau
Cold plunge or a hot bath: Which has more benefits?
I surf in all kinds of water temps but cannot get into a cold plunge for some reason. My record is 17 seconds. I find it painful. It is comically frustrating for me. I was born in Chicago-shouldn’t I be able to handle this?
59% of Americans consider this the No. 1 sign of success — it’s not wealth
How the happiest people spend their weekends: Treat them ‘like a vacation,’ happiness expert says
Nine Restaurants Claim the Title of World’s Best, La Liste Says
The No. 1 honorees are: Le Bernardin in the US; SingleThread in the US; L'Enclume in the United Kingdom; Cheval Blanc by Peter Knogl, in Switzerland; La Vague d'Or in France; Guy Savoy in France; Schwarzwaldstube in Germany; Matsukawa in Japan; and Lung King Heen in Hong Kong. They each got a ranking of 99.5.
Real Estate
I have written extensively about South Florida’s high-end real estate and have provided many ridiculous examples. The wealth migration has clearly slowed from peak levels, but it continues nonetheless. In a shocker, a $55mm asking price home in WEST Delray just sold. I do not know the final sale price, but the 20,723 ft home dubbed Casa Maranello is over 8 miles west of the beach. The house sits on 2.5 acres, but it would be hard for me to recommend that anyone spends that much money being that far west. The listing can be found here. Don’t get me wrong, the house looks very night with crazy features (e.g. 12 car garage, home theater, massive kitchen). I just do not care for the location. Hedge fund manager Steve Cohen is in this area as well after buying in 2021.
South Florida has a condo problem: too many old units that no one wants to buy, and too few newer, affordable ones. Some developers are changing plans to help shift the balance. The developers are seizing on demand from an ever-growing buyer pool. Newcomers to the area are favoring new construction, and owners at older condos are looking to trade up rather than pay costly safety assessments leveled in the wake of the Surfside building collapse that killed almost 100 people. Just 3% of the condo units listed in the South Florida market — Broward, Miami-Dade and Palm Beach counties — are less than 10 years old, according to local real estate firm ISG World. In short, proceed with caution on older condo buildings. The assessments can be massive and many residents cannot afford them. Some buildings have too many units for sale making it nearly impossible to get the price cheap enough.
The Meatpacking District in Manhattan has become a hot spot and meatpacking companies have been pushed out with sky-high real estate prices. Today only a handful of meatpackers remain, and they’re preparing to say goodbye to a very different neighborhood, known more for its high-end boutiques and expensive restaurants than the industry that gave it its name. In its heyday, it was a gritty hub of over 200 slaughterhouses and packing plants at the intersection of shipping and train lines, where meat and poultry were unloaded, cut and moved quickly to markets. Now the docks are recreation areas and an abandoned freight line is the High Line park. On a related note, London’s Smithfield Market is set to close after 900 years!
This article outlines the issues with Harry Macklowe’s $2bn conversion of One Wall Street to condos. According to the article, only 112 of 566 units closed over 3 years. Sales have been in the $800k-$2mm range with limited larger units selling. Total sales of $230mm against a projected sell-out of $1.7bn. I’m not too fond of this location. I would never want to live down there. However, the amenities, Whole Foods, and shopping make it convenient, especially if you work all the way downtown. The article suggests big discounts are available.
© 2024 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™ #739 ©Copyright 2024 Written By Eric Rosen.
