Unstrung-Customer Service Is Key

6-15-25

Opening Comments

My last note was about my painful week battling a 4mm kidney stone. The most opened links were Musk’s rugby tackle of Scott Bessent and three warning signs not to ignore from a heart surgeon.

Happy Father’s Day to all those proud dads who read the Rosen Report.

Thanks to the assistance from my readers, I am becoming more efficient in writing my newsletter. I am getting hundreds of emails each week from readers with story ideas, and now 35% of my articles are reader generated. Thank you for taking the time. If you enjoy the Rosen Report, send it to friends to help me grow it, as 100% of my growth is user generated.

The ICE raids are impacting workers in the Hamptons. I have spoken with multiple people who suggest fears of ICE raids have fewer available construction workers and landscapers in the Hamptons. Some are even suggesting traffic is lighter as a result. This WSJ article, “ICE Raids Have Sent Latino Shoppers Into Hiding and Big Brands Are Hurting,” suggests the raids are hitting retailers.

Rosen travel update: Hamptons Through Monday the 16th. NYC June 16th-19th. Depending on weather, either Saucon Valley, PA the 19th-20th or Marion, MA. Planning on attending the Travelers’ PGA golf tournament to support Max Greyserman as well. Will be in the Boston area in late June.

• Pictures of the Day-Junoon Is Amazing

• Unstrung-Customer Service Is Key

• Quick Bites

  • Markets

  • US Budget Deficit

  • UK Taxing the Wealthy-Consequences

  • NY Spend Per Capita vs Florida

  • Securitization Market-US/Europe

• Tariffs

• Politics

• Middle East-Expanded Section

• Other Headlines

• Health

• Real Estate

  • Related New Condo Financing in WPB

  • Small Investors Buying Homes

Pictures of the Day-Junoon Is Amazing

• I have written about one of my all-time favorite Indian restaurants previously. Prior to the pandemic, Junoon had Michelin Star, but closed due to the onerous rules in NYC. They reopened down the block in a smaller location and the food continues to dazzle, even if the new space is less impressive. I introduced my son, Jack, to Junoon some years ago and he always wants to go back. The food is stunning, and the service is solid, even if the vibe and crowd are not what it was in 2019. The flavoring, spices, presentation and naan are remarkable at Junoon, which means madness or passion in Urdu. The naan is my favorite bread in NYC and the eggplant chaat is out of this world. If you want amazing Indian food in NYC, I highly recommend Junoon, Bungalow, or Semma.

  • Food 8.9

  • Service-8.8

  • Ambiance-8.0

  • Price-VERY reasonable for the quality and quantity-$95 pre-fixe dinner

Unstrung-Customer Service Is Key

My readers know I am not incredibly patient and am easily frustrated by incompetence. I have written about the importance of customer service in the past here and here. My son Jack graduated high school in recent weeks as the valedictorian and one of his gifts would be a guitar as a gift from his parents and grandmother. Given we were heading to NYC, we held off purchasing it until we got there, assuming the selection would be better.

I was near Guitar Center on 14th Street and walked in to check out the inventory as I had spotted a model of acoustic guitar that I thought Jack may like. The store was a madhouse with very few employees. The higher end guitars are all under lock and key and I was unable to get assistance despite asking multiple times. After 20 minutes of waiting, I left the store without ever being helped.

It is important to note that due to the pandemic, the growth of online sales and a host of other issues many long-time music stores in NYC have closed in recent years. Big ones like Manny’s and Sam Ash are gone and the huge Guitar Centers in Times Square closed down.

Jack and I went back to Guitar Center the next day and again, no one could help us. There was ONE salesman to help all acoustic guitars and manage the register of people buying anything on the 1st floor. I begged for assistance and the overwhelmed salesman could not get away from the register. I asked to speak with a manager, and one was working that evening. Finally, someone came out and he apologized, “Since the pandemic, we have had staffing issues. It is unacceptable but it is where we are today.” He finally unlocked guitars and then the overwhelmed salesman came to help. He was a good salesman, not amazing, and he was acting as though we could not afford the guitars we were trying. The process was irritating and insulting and Jack decided to sleep on it before his final decision.

The process at Guitar Centers made it clear I will NEVER buy another product from that company. I have bought at least a half dozen guitars from them and the experience last week left such a poor taste that I cannot go back. The CEO of Guitar Center suggests he is not afraid of big brands such as Gibson and Fender selling products directly. Well, bud, if my experience is any indication, you should be very afraid.

I looked up a long-standing guitar store in SoHo called Rudy’s (opened in 1978) and Jack and I headed down. The experience was a 10 out of 10. We were greeted at the door and the staff made the people at Guitar Center look like morons. Rudy’s has a young man named Ian as the Taylor expert, and he was the most knowledgeable person I ever spoke with about Taylor guitars. The details he can articulate about the different woods was remarkable and helped us decide on the right guitar for Jack.

Jack went and tried out a dozen models of Taylor with each guitar being explained by the expert. Jack then tried Martin guitars all within Rudy’s store and another expert assisted us and allowed Jack to try any and all guitars without question.

In the end, Jack went with this beautiful Koa wood Taylor 724 CE model. We left the store smiling about the experience and the purchase (same price as Guitar Center). The Koa wood is warmer than Jack’s 814 CE, which has a Sitka spruce top with Indian rosewood back and sides.

The customer experience matters. I left Guitar Center frustrated and disappointed. I left Rudy’s after purchasing an expensive guitar with a smile on my face. The experience at Rudy’s could not have been better. As an aside, I am buying more from an on-line music retailer Sweetwater. They have excellent customer service as well.

Quick Bites

• Stocks sold off 1-2% on Friday due to the escalation in Iran. The S&P was -.4% on the week and Nasdaq-.6%. If you told me that Israel attacked Iran (US shooting down Iranian missiles), we would be in a trade war, the 30 year Treasury would be approaching 5%, the US would be running $2 trillion deficits, there would be protests and riots in many cities across the US, the Ukrainian situation would remain hot, the US manufacturing sector was in recession, the consumer was bifurcated, housing was slowing down, and stocks would be 3% from all-time highs with the S&P PE estimate for 2025 of 23, I would think you are crazy. Oil prices were +7% on Friday with US crude +$5/barrel to $73. According to Torsten Slok at Apollo, “According to the Fed’s model of the US economy, a sustained $10 increase in oil prices is expected to increase inflation by 0.4% and lower GDP by 0.4%.” The Treasury market was weaker, with the 10-year +5bps to 4.41% and the 30-year +6bps to 4.9%. On risk-off days, generally Treasuries rally, pushing yields lower. Equities are shockingly resilient in the face of many headwinds but the VIX is approaching 21. Crypto sold off on the Middle East escalation but Bitcoin remains near $106k and +13% YTD.

  

  

• The US budget deficit hit $316bn in May or +14% from a year ago. The YTD total deficit is $1.37 trillion. Interest on the federal debt was $92bn on the month. Jeff Gundlach suggested the “Day of Reckoning” is coming for US debt. Gundlach, 65, likened today’s market to the environment in 1999, just before the dot-com bust, as well as 2006 and 2007 before the global financial crisis. As for Treasury debt, Gundlach said yields on long-term bonds could continue to rise as the economy starts to weaken. If yields reached 6%, that could prompt the Federal Reserve to step in and start quantitative easing, buying long-term Treasuries to rein in borrowing costs. Gundlach previously predicted that the price of gold would shatter records, as happened this year, and in May, he told CNBC that the precious metal could swell to $4,000 per ounce, up from about $3,350 now. In recent weeks, Wall Street leaders including JPMorgan Chase CEO Jamie Dimon, BlackRock CEO Larry Fink and Bridgewater Associates’ Ray Dalio have warned of turmoil that could come from the onerous debt burden. The deficit is currently running more than 6% of gross domestic product, virtually unheard of in peacetime U.S. economies. I am a broken record on this issue. We need to cut spending, cut deficits, run deficits to GDP at sub 3%, and have entitlement reform.

  • Elon Musk backs Warren Buffett’s proposal to ‘end the deficit in 5 minutes’ as the bold idea gains steam again. I have written about Buffett’s idea: “You just pass a law that says that any time there's a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election.” Sadly, it will never pass.

    

• Another interesting Bloomberg story about the UK taxing the rich and the consequences of the policy. As the pace of wealthy individuals leaving London quickens, the numbers are starting to stack up: Labour’s flagship “tax the rich” policy risks becoming a net drain on the UK economy. Barely a day passes by without a big investor or entrepreneur exiting after the government abolished a two-century-old tax break for non-domiciled residents — well-heeled residents hailing from overseas. Billionaire Checkout.com founder Guillaume Pousaz and Nassef Sawiris, Egypt’s richest man, are among those fleeing to European and Middle Eastern financial centers with promises of a lighter tax load, as what began as a trickle of exits quickly turns into an exodus. A Bloomberg analysis of 5 million company filings shows a big spike in departing business leaders over recent months, with more than 4,400 disclosing an overseas move in about the last year. A wave of recent studies warn the UK will lose thousands of jobs and as much as £12.2 billion ($16.5 billion) over the coming four years if non-doms leave at the pace that many advisers are predicting. The wealthiest people have options. These government officials underestimate the willingness of the wealthy to relocate once they feel policies are unfair. Look at what has happened in NY and CA with the wealthy leaving and businesses following suit. How much will it cost CA to not have Musk and Tesla in the state?

• Interesting story about spending in NY vs Florida. "In 2000, New York State spending per capita was already 30% higher than Florida. By 2024, New York spent 133% more per capita than Florida... The results of these different budgetary approaches have been stark. From 2000 to 2024, New York's population grew 4.5%, while Florida's grew 45.6% - a tenfold difference." The spending is just not sustainable in many states or the Federal government.

  

  

• The Daily Spark is from Apollo’s Torsten Slok, and Thursday’s was a quick note and graph comparing the market for securitizations in the US and Europe. In the United States, the securitization market is 50% of GDP. In Europe, securitization markets are only 7% of GDP, see chart below. Expanding the securitization market in Europe would unlock significant GDP growth in Europe. When you look at the capital markets in the US, they dominate. The equity capital market in the US is $60+ trillion. The #2 country is China at $11 trillion. Although I believe the dollar will continue to decline as the reserve currency, I do not see another currency taking its place in my lifetime.

Tariffs

• Bessent floats extending tariff pause for countries in ‘good faith’ trade talks

  • The Trump Administration’s trade policy has been a joke of epic proportions. No one believes anything they say about tariffs. How about 20%? No, 50%. No, 100%. No, 150%. Just kidding, how about 20%. As the demented former President says, “Come on, Man.”

• Here are the three reasons why tariffs have yet to drive inflation higher

Politics

• Suspect identified in Minnesota lawmaker shooting had ‘No Kings’ flyers in his car

  • Senseless attacks on politicians and families. The suspect posed as a police officer and is still on the run. He was appointed by Democratic Governors including Walz and hat a hit list with 70 names in his car.

• LA Mayor Bass Blames Trump for Apple & Nike Looting!

  • This moron let LA burn, has done virtually zero to help residents rebuild, and now blames Trump for her constituents looting. You cannot make this up. She is running for re-election. If the people of LA re-elect this idiot, they deserve what they get.

  • Trump Regains Control Of Troops In L.A. From Newsom Thanks To Appeals Court

• Officers injured as Portland rioters breach ICE building with explosives and rocks

• Massive ‘No Kings’ protesters sweep New York City and across US amid celebration of Army’s 250th bday

• Unlawful assembly declared in LA as ‘No Kings’ protests grow chaotic; cops hit with concrete, fireworks

• Brevard sheriff’s warning to violent protesters: ‘We will kill you graveyard dead’

  • Slight juxtaposition between NY and CA relative to Florida on violent protestors and cops.

• Ron DeSantis Says Floridians Have Right to Hit Protesters With Cars

  • If you are in danger and surrounded by people while in your car, you can drive, and it you hit someone, you are not at fault, according to DeSantis.

• Massive drug bust impeded by Arizona protesters ‘thinking it was an ICE raid,’ sheriff says: ‘Idiots’

• Sen. Alex Padilla is forcibly removed from DHS Secretary Kristi Noem's news conference in Los Angeles

• ICE officers assaulted during raid that nabbed 70 illegal immigrants at meat plant

• Trump administration tells 500,000 immigrants to ‘self-deport’ after revoking protections

• At Least 11 NYPD Cars Firebombed at Police Station as Anti-ICE Protests Spread; Masked Men in Black Flee Scene

• USAID official pleads guilty to taking part in $550M bribery scheme: ‘Violated the public trust’

• See photos of Trump's military parade as 'No Kings' protests take place across the U.S.

• The Trump Tax Cuts Gave the Largest Tax Cut to Low-Income Working Families

  

• House GOP Passes DOGE Cuts by a Whisker After Chaos on Floor

• Trump says he's open to reconciling with Elon Musk over 'big, beautiful bill' feud

• Elon Musk’s favorability among Republicans dropped 16 points since March, Quinnipiac says

• Trump raked in $57M income from family crypto firm — seven-figures from guitars, sneakers, watches and books

• Man who pledged loyalty to ISIS plotted attack on college football stadium, court records say

  • Oklahoma man reportedly communicated with undercover officer about security flaws at Sooners' stadium

• Ukraine's defense industry says the fight against Russia has shown it that the West's approach to weapons is all wrong

Middle East

I have been clear about my concerns about Iran’s nuclear capabilities and my hope that the US and Israel attack Iran to destroy their nukes. Although I am hardly a warmonger, I feel the safety at Israel and the West was at risk. Lots of major headlines, but Israel had a coordinated effort to inflict damage and take out some military leaders. Israel launched numerous strikes on Iran. The IDF expects the operation to last days. Israel claims control of the situation despite Iran launching over 100 drones to attack Israel. Video of Iran’s missiles launched at Israel and the Golden Dome in action. The US is helping Israel shoot down Iranian missiles, which is a solid sign of support. This article outlines how Mossad infiltrated Iran. How is it that Mossad missed October 7th, but is so savvy and able to pull off such amazing feats? However, articles suggest that the Iranian nuclear facilities were damaged but not destroyed. Trump, send Israel a couple of those 30,000-pound bunker busting bombs and finish this job. Prime Minister Sir Keir Starmer says the UK is moving military assets – including jets – to the Middle East for "contingency support across the region." Remember, not only does Iran’s leadership hate Jews, Israel and the West, they also fund Hamas, Hezbollah and the Houthis. The Egyptian stock exchange (EGX) is -4.6%, while the Tel Aviv exchange is +.57%.

• Iran’s supreme leader facing fury from within

• Iranian lawmaker says closure of key Strait of Hormuz under consideration

• Shahran oil field in western Tehran is on fire following Israeli strikes

• ‘Significant damage’ after IDF headquarters hit by Iranian missile attack as Islamic Republic launches barrage of missiles at Tel Aviv

• 10 killed, 200 injured, 3 missing as Iranian missiles pound Israel

• Iran ‘crossed red lines’ by targeting civilians, will pay ‘very heavy price’

• Iran attacks Israel's power supply

• Here are the top Iranian leaders killed in Israel’s precision airstrikes — including Revolutionary Guard leader, Gen. Hossein Salami

  • Also, the top Iranian nuclear scientist was killed.

• 'Tehran is ablaze': Israel strikes massive oil depot near Iranian capital, fire rages

• What is Israel’s Iron Dome? Here’s how the missile defense system works

  • Read about how it works. Amazing.

• Musk says he is providing Iran with Starlink as regime restricts internet

• Trump calls Israel’s attack on Iran ‘excellent’ — and warns ‘a lot more’ to come

• 'Squad' members erupt over Israel's 'reckless' strike on Iran

• McCaul says Israel strikes are 'perfect opportunity' for Iranians to overthrow Islamic regime

• NYC increases NYPD security at Jewish locations after Israel launches strike against Iran

• Jewish student settles religious discrimination suit against Columbia

• Gaza Humanitarian Foundation says Hamas attack has killed multiple aid workers

Other Headlines

• Jefferies chief strategist delivers his latest market forecast as Middle Eastern tensions escalate

• Evercore’s Roger Altman: The economy is 'slowly shifting into a lower gear'

• Consumer sentiment reading rebounds to much higher level than expected as people get over tariff shock

• Paul Tudor Jones Predicts 10% Dollar Slump During the Next Year

• Bitcoin becoming ‘more central’ to portfolios as its volatility cools, Coatue’s Philippe Laffont says

• Oracle shares pop 15% to record high on earnings beat, cloud optimism

• Chime prices IPO at $27 per share, valuing fintech company at $11.6 billion ahead of Nasdaq debut

• GameStop shares tank 20% as retailer reveals convertible debt offering, trading cards plan

• Yale soon to sell nearly $3 billion in private equity

  • Over exposure to illiquid assets has hurt many endowments.

• Harvard and Yale Will Finally Lift the Veil on Private Assets

  • The volatility on private assets are far less given the lack of transparency and not actively marking them to market.

    

• OpenAI’s Sam Altman thinks we may have already passed the point at which AI surpasses human intelligence

• NYPD footage captures callous home invaders who allegedly posed as Amazon workers, tied up parents, 3 kids

• Air India confirms plane crash killed at least 241 people

  • Boeing sure is in a lot of crashes and issues. 241 killed. One person survived!

• Justin Bieber could be placed in conservatorship by Hailey if she can prove 3 points to court amid his bizarre behavior

Health

• Longevity expert: The healthiest, longest-living people eat these 6 foods in the morning—‘breakfast like a king’

• This single habit can cut colorectal cancer death risk by 39% — but it’s different from government guidelines

  • Start screening early (40 years old).

• These Diabetes Drugs Are Finding New Life as an Antiaging Hack

  • Despite incomplete evidence, longevity enthusiasts are experimenting with SGLT2 inhibitors in their quest to live healthier for longer.

• Rare appendix cancer surging for millennials, Gen X, study finds

• Your favorite alcoholic beverage could be linked to deadly form of cancer, study finds

  • Beer and spirits linked to pancreatic cancer in addition to seven other types of the disease

Real Estate

• Billionaire Related Ross Chairman and CEO Steve Ross secured $600 million in financing for his planned South Flagler House condo project in West Palm Beach. It marks the largest condo construction financing in South Florida so far this year. Bank OZK provided $475 million as the senior secured lender in the deal, according to a press release. New York City-based GoldenTree Asset Management, led by founder Steven A. Tananbaum, partnered with TZ Capital for an additional $125 million mezzanine loan. Designed by Robert A.M. Stern Architects, South Flagler House is planned for 1355 South Flagler Drive in West Palm Beach. Ross bought the 3.4-acre waterfront site for $194.6 million in 2023 and launched sales for the project that same year. Construction has begun, and the towers are slated for completion in 2027, the release shows. The planned 28-story, two-tower project will have 105 units. It offers the most expensive condos in the development pipeline in West Palm Beach. Prices now start at $7.9 million, and range up to $73 million for the penthouse, according to the release.

• Small real estate investors increased their foothold in the market last year, according to a new report from Realtor.com. Realtor.com found small investors made 59% of all investor home purchases last year. That figure, the real estate marketplace said, represented the "highest share in the data’s history" for entities that have bought ten or fewer homes. The number of homes acquired by small investors rose 3.7% year-over-year to hit 361,900 in 2024, according to the report. Meanwhile, the share of investor home acquisitions by large investors reached the "lowest" level in 17 years, Realtor.com said. Entities that have bought at least 50 homes were responsible for 21.7% of all investor purchases last year, per the report.

© 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™ #793 ©Copyright 2025 Written By Eric Rosen.