Private Credit, Recency Bias, and SpaceX

Each week, the Stokes Family Office staff puts together a list of our favorite news and updates on all things wealth management. From financial planning, portfolio construction, tax and estate planning, and retirement plan services to anything we found interesting.  Enjoy this week’s curated list for your weekend reading!

ECONOMY NEWS

Ten Enduring Lessons from Adam Smith

• Nikolai G. Wenzel: From technocrats to central planners, the temptation to engineer society persists. Adam Smith saw the dangers clearly.

The Bottom of the Ninth

• Elizabeth D. Samet: In baseball and in life, there is a cost to our pursuit of an error-free existence

The Longest Economic Boom Ever?

• Ben Carlson: At the very least, this is the most impressive economic expansion given everything that’s been thrown at it. This economic boom hasn’t always been perfect. There are certainly parts of the economy that have struggled. Not all households have benefited equally. At some point, the cycle will turn. I don’t know when or why. No one does. Everyone who has been predicting the downfall of the economy since the end of the Great Financial Crisis has been wrong, often spectacularly so. The economy just keeps chugging along.

Related:

• • • • The Stokes Family Office Q1 Review
      • The ‘Timing The Market’ Debate
      • Staying Bullish Through Volatility

MARKETS NEWS

Special Treatment for the SpaceX IPO?

• Owen A. Lamont: SpaceX is shaping up to be one of the largest IPOs in financial history. In response, the major index providers, including Nasdaq, S&P Dow Jones, and FTSE Russell, are all reportedly considering changing their existing rules to allow SpaceX and other giant IPOs to be added to the indices faster and with less stringent liquidity rules

What’s Going on in Private Credit?

• Howard Marks: Private credit isn’t broken—but it’s being stress-tested for the first time at scale

Recency Bias (or: You’re Running Buggy Software)

• Mark Crothers: Felt a little uneasy with the market wobbles over the last while? Maybe some quiet anguish watching your numbers dip into the red? If so, welcome back to an old friend, recency bias, because that’s almost certainly what you’re experiencing.

CHART OF THE WEEK

J.C. Parets, Founder of TrendLabs, says, “Marine shippers are probably closing at new all-time highs because no one is moving anything around,  and a recession.”

Want to hear more from our team? Check out the Lagniappe Podcast. 

Talking Private Credit With Phil Huber

Doug and Greg Stokes speak with Phil Huber, the Head of Portfolio Solutions at Cliffwater. In this timely discussion, they’ll touch on the evolution, current state, and future outlook of private credit, including its origins, growth, and how it compares to other asset classes.

Stokes Family Office is 100% Family Owned, and has been continually operating in the New Orleans Area for over 35 years.  As a family office, we are focused on family wealth, financial planning, and tax planning. We are your local experts for Gulf South wealth management.