Nevstar Links 23 May 2025
Welcome back to the Nevstar Links, your guide to some of the best articles on markets and investing available on the internet.
Today is Friday 23rd May and its quite a special day in the history of New Zealand. It was on this day in 1966 that Dame Te Atairangikaahu was coronated as the Māori Queen following the passing of her father Korokī Mahuta. She was the longest serving Māori monarch reigning for over 40 years until her death in 2006. Her full whakapapa (lineage) name, linking her to previous Māori monarchs, was Te Atairangikaahu Korokī Te Rata Mahuta Tāwhiao Pōtatau Te Wherowhero.
Onto the links which has articles on miracles, tips, and turns.
The Stockmarket Remains Undefeated
Great blogpost from our friend Barry Ritholtz looking at the sharemarket and how it has responded to three recent historical “surprises”. The lesson, as we probably should know right now, is that no one is smarter than the market and politicians should take it on at their peril.
“This set the stage for the lockdowns to begin in earnest and tipped the global economy into shutdown mode. Then came one of the fastest sell-offs of all time, a decline of 34% in just 17 trading days. Congress, under then-President Trump (45), soon passed the CARES Act. At 10% of GDP, it was the single largest fiscal stimulus since World War 2.”
Turns For The Worse Are Never Permanent
On a similar theme is this interesting post from Sam Ro at Tker looking at three specific market crisis (Asian Crisis, GFC and Covid) and how bleak things looked at certain points during these events. But markets recovered, as they always do, because markets are made up of companies, and companies are always trying to get better at what they do.
“There are way more people who want things to be better, not worse. And that demand incentivizes entrepreneurs and businesses to supply better goods and services. The winners in this process get bigger as revenue grows. Some even get big enough to get listed in the stock market. As revenue grows, so do earnings. And earnings drive stock prices.”
The ‘Miracle In A Syringe’ That Bankrupted Weight Watchers
Excellent article from Risk Hedge looking at the impact of corporate ‘disruptors’ which completely change the dynamics of an industry. The most topical example is the recent bankruptcy of Weight Watchers largely due to the astonishing rise of GLP-1 drugs like Ozempic.
“Maybe Ozempic will have a bigger real-world impact than artificial intelligence.
Here in Ireland, you basically can’t get semaglutide unless you’re morbidly obese. So a black market for Ozempic has emerged. When law-abiding, God-fearing citizens are turning to the black market for your product, you know you’re onto something.”
Tipping Point: How America’s Gratuity System Got Out of Hand
On a slight tangent, but I thought this was an excellent piece on the ludicrous tipping culture in the United States, the effects of which are starting to be seen here in NZ. The article traces the history of tipping and how it turned into a massive corporate subsidy allowing employers to evade paying staff for the full value of their labour.
“Fast forward to 2025: you’re now expected to tip for just about everything — food trucks, self-service kiosks, airport coffee stands, even automated checkout screens. What began as a small courtesy for excellent service has become an expectation embedded into every transaction. The worst part? It's no longer clear who the tip is actually going to.”
30 Quotes From The History of Finance
Finally we have this great collection of wisdom encapsulated in 30 quotes from financial history. Grouped into vices to avoid, virtues to adopt and a little humour to stay sane, this is a fantastic repository of learnings from some of the greatest financial minds of the last 200 years.
“The most tragic mistakes in finance are those we could have avoided — if only we had learned from the past. Yet these errors persist because our instincts, once essential for survival, often backfire in markets. Until evolution catches up, our best remedy is historical awareness.”
Quotes of the Week
“Nothing so undermines your financial judgement as the sight of your neighbour getting rich.”
J. Pierpont Morgan
Stay up to date with the Nevstar Links:
That is all for the Nevstar Links this week. Please share this with anyone that you think might be interested in reading it. If you would like to unsubscribe, please send me an email at [email protected].
If you would like to conduct a review of your existing investment portfolio, or discuss investing generally, please feel free to give me a call at JMI Wealth on 09 308 1450.
Have a great weekend.
The Nevstar
To find out more please call the following investment advisor for a chat on +64 9 308 1450 (alternate contact below) or send us a message at Contact Us.
Neville Giles
+64 27 257 5711