Inside Arbitrage Friday Wrap – Bear Market Resumes

  • June 10, 2022


Our list of curated tweets for the current week

Earlier this week we explored bear market rallies in a post titled The Emotional Toll Of Bear Market Rallies and given market action during the last two days, it feels like the bear market rally we were experiencing since late May appears to have come to an end. It is hard to see an end to this challenging environment when fundamental conditions like inflation, high energy prices and supply chain issues have not been addressed. Experienced investors who have seen multiple market cycles like Stanley Drunkenmiller and Jamie Dimon think there is more pain ahead. There are some spots of optimism including commodities and the strategy of merger arbitrage, while impacted, has held up better than the overall market. This seemed like an appropriate time to discuss behavioral errors that we tend to make as investors and I have included a Twitter thread related to it below.

If you like this weekly wrap or have any suggestions for improvement, I would love to hear from you. Some of your suggestions over the last several weeks have already helped us improve the format of these articles.


Story about the biggest investment mistake I made

$RDBX stock is trading at $10.00 while the $CSSE merger consideration is worth just $0.60

Twitter’s board plans to comply with @elonmusk 's demands

Western Digital is close to a settlement with activist investor Elliott Management

The diamond jewelry retailer, Signet Jewelers Limited $SIG announces expansion of share repurchase program representing around 16% of its Outstanding stock

One VERY important loophole is now closed that to work of Wharton Forensic Analytics Lab. SEC will now require ALL Form 144s to be filed electronically on EDGAR.

Starbucks, with its shares down over 30% this year, is considering only external candidates for its next CEO

Last week, an Amazon VP took to an Amazon-run forum for sellers to urge them to contact their senators in opposition to Klobuchar’s self-preferencing bill

So if tech companies reduce SBC and start paying more in cash, can we still ignore it as an expense?

Sebastian Mallaby with simultaneously the best Ray Dalio burn I've ever read and the best explanation for Bridgewater's success.

$HQI Temporary Help Services up 13% yoy in May to a new high.

World oil production expected to reach November 2019 pre-Covid level of 102 mmb/d again by November 2022.

The reason natural gas prices are so high

One of the great investors of our time: Li Lu

Global Events

All of this happened in China last week

Flying out from Pudong airport today. Made a perilous escape from Shanghai.


The older I get, the more I realize that success in life, work, and investing is about having enough padding to weather volatility

"Training load" is a combination of duration and intensity that quantifies the stress imposed by your workouts.

The Brooklyn Bridge was "sold" a staggering 4,160 different times between 1883 and 1928.


So there’s a 130sec window from opening a Tesla within which you can create a new NFC card.

This Is How Charlie Munger Negotiates With Large Insurance Companies

The goals that previous generations took for granted such as a home of their own and retirement plans all seem unobtainable today.


It's been 2 years since we sold @teachable for a healthy 9-figure amount

A surprisingly large amount of the long-term advantage of US businesses comes from the fact that its companies are generally better managed

Voluntary Disclosure: I hold long positions in Twitter (TWTR) and Signet Jewelers (SIG).