The Sunday Brew #41
In this brew - In picture Debt to GDP ratio | Luck Razor & The Pyrrhic Victory | 'Big Short' is shorting again, Coinbase approved to trade crypto futures and India-Russia close to Lunar landing.
Welcome to The Sunday Brew, weekly 1-2-3 newsletter by The Percolator. Every Sunday we drop in your inbox 1 story in a picture, 2 concepts, ideas or frameworks to expand your horizons and 3 news from the week, to keep you updated.
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ONE STORY IN A PICTURE
TWO IDEAS, FRAMEWORKS OR CONCEPTS
This week we bring to you two frameworks - Luck Razor & The Pyrrhic Victory
Luck Razor
Luck Razor is a powerful mental model that guides decision-making by prioritizing choices that offer the highest potential for favourable outcomes. When faced with multiple options or actions, the principle encourages individuals to select the one that aligns with greater opportunities or maximum luck potential.
In essence, it's about making decisions with an eye toward serendipity & positive chance occurrences. By applying Luck Razor, individuals aim to increase the likelihood of stumbling upon valuable connections, insights, & experiences that could propel them forward in their personal and professional lives.
As a decision-making tool, Luck Razor reminds us to consider not just the immediate benefits of a choice, but also the potential long-term advantages that can emerge from seizing opportunities with higher luck potential.
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The Pyrrhic Victory
A "Pyrrhic victory" is a term used to describe a victory that comes at a disproportionately high cost, rendering it almost as damaging as a defeat. This term originates from the ancient Greek military leader Pyrrhus, who won a series of battles against the Romans but suffered significant losses in terms of soldiers and resources. As a result, even though he technically won the battles, his victories weakened his overall position to the point that they were not sustainable.
In modern usage, a Pyrrhic victory refers to situations where the price of success is so steep that it negates the benefits gained. It's often used to describe situations where achieving a short-term goal or victory leads to significant long-term negative consequences. For example, winning a legal battle but depleting all financial resources in the process could be considered a Pyrrhic victory.
The term highlights the importance of assessing the full spectrum of costs and consequences before pursuing a particular course of action, as well as considering the sustainability and overall impact of the intended outcome.
THREE NEWS FROM THE WEEK
The โBig Shortโ is Shorting Again!
Michael Burry, the investor who famously predicted the subprime mortgage crisis, is shorting the stock market again. In his hedge fund's Q2 2023 portfolio filing, he disclosed that he had taken out $887 million worth of put options on the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500, and $738 million worth of put options on the Invesco QQQ ETF (QQQ), which tracks the Nasdaq 100. This means that he is betting that the S&P 500 and Nasdaq 100 will fall in value.
It is important to note that Burry has been wrong about the market in the past. In 2016, he predicted that the stock market would crash within a year, but it continued to rise. Read More ยปยปยป
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Coinbase gets NFA Approval for Crypto Futures
Coinbase received regulatory approval from the National Futures Association (NFA) on August 16, 2023 to offer cryptocurrency futures to eligible U.S. customers. This is a major regulatory win for Coinbase, as it allows the company to offer a wider range of products to its customers and compete with other cryptocurrency exchanges that already offer futures trading.
The approval of Coinbase to offer crypto futures is a positive development for the cryptocurrency industry. It shows that regulators are becoming more comfortable with the idea of cryptocurrency trading and that they are willing to allow regulated exchanges to offer these products. Read Moreยปยปยป
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India & Russia race to Lunar South Pole
India's Chandrayaan-3 lunar mission has entered the last phase of its journey. The lander module, Vikram, has successfully separated from the propulsion module and is now in a free fall towards the moon. The lander is expected to touch down on the moon's south pole on August 23.
Russia is also close to landing its Luna-25 lander on the moon's south pole. The lander entered lunar orbit on August 16 and is currently scheduled to land on August 21. The Luna-25 mission is Russia's first lunar mission in nearly 50 years. It is a robotic mission that will carry a suite of scientific instruments to study the moon's geology and environment. Read More ยปยปยป
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The Sunday Brew by The Percolator brings to you curated news on tech, business & entrepreneurship, from across the internet to give your week a perfect start.
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