Finally a Cut! -Episode 168

Investing with GoodLife

Investing with Goodlife Episode 168.

In this episode Rohan and David discuss the following:

1. Interest Rate Cuts: The Fed has implemented a more aggressive 50 basis point rate cut, focusing on easing inflation concerns and shifting attention to the job market. Upcoming meetings in November and December may lead to further cuts, with expectations of total reductions amounting to 100 basis points over the next two years.
2. California Office Conversions: California is fast-tracking laws to convert vacant office buildings into residential spaces, despite challenges in actual conversions due to costs and design issues. An estimated 30% of Manhattan office buildings may be beyond viable conversion.
3. Amazon's Return to Office: Amazon has mandated a return to the office for over 350,000 employees, with plans for a five-day workweek starting January 2025, marking a significant shift in corporate policy.
4. Loan Workouts: A surge in loan workouts has been reported, with significant increases in foreclosures and loan modifications as banks and borrowers navigate market challenges without aggressive foreclosures, reflecting a more cooperative approach.
5. 3D Printing and Construction Costs: David and Rohan discuss the ADU conference, highlighting efforts to lower construction costs through modular housing and 3D printing technology. Walmart's testing of 3D printing for building expansions in Tennessee shows promise but faces challenges in precision, ultimately balancing costs without significant savings.
6. Customization Trends in Homebuilding: They note a shift among home builders moving away from customization options in design studios due to low margins and increased staffing demands. This aligns with trends towards prefabricated and modular construction, which offers cost and time advantages but may sacrifice quality and customization.
7. Blackstone and Motel 6 Sale: David mentions Blackstone's recent sale of Motel 6 to Indian hotel giant Oyo, emphasizing the deal's profitability for Blackstone and Oyo's strategy to penetrate the U.S. hospitality market.
8. Insights on Oyo Hotels: Rohan explains Oyo's business model, which focuses on stripped-down, limited-service hotels and uses technology for reservations and operations, likening it to a budget airline model in hospitality.
9. Entertainment Recommendations: They share their current TV and movie watching habits, with David enjoying "The White Collar" series and Rohan revisiting "American Gangster." Both appreciate lighter shows and notable performances, reflecting on their viewing experiences.
10. Personal Updates: David talks about dining at a fusion restaurant in New York, while Rohan shares his experience at Brother Luck in Colorado Springs and his new versatile Yeti backpack designed for rucking. They also introduce a "downgrades" segment, with David mentioning the inconvenience of hotel congestion due to a nearby UN meeting.
11. Shohei Otani's Achievement: David celebrates Shohei Otani's remarkable performance in baseball, noting his entry into the 50-50 club with multiple home runs and impressive stats, underscoring his exceptional season.