A few charts worth discussing
“The strong performance of the S&P 500 over the past decade has been increasingly driven by the Info Tech sector, with all other sectors underperforming the index and contributing to extremely narrow leadership.”
“The cost of genomic sequencing continues to decline, and is now as low as $100. Recently an Australian man was able to sequence his dog's cancer and develop a cure, and I am hopeful for a world where such treatment is readily and cheaply available for humans as well.”
(Read full article here)
Other charts worth pointing out
S&P 500 technology sector relative returns since 2015
S&P momentum vs. low volatility stocks
Earnings estimates across equity markets
Canadian stocks vs. U.S. stocks
Interest rates and credit spreads since 1920
Historical S&P 500 stocks vs. U.S. 10-year bond correlation
Historical U.S. 60/40 risk-adjusted returns
Gold price performance since 1960
U.S. crude oil days of supply
Comparing first-day and one-year IPO returns
US insurance rulemaker probes credit risks tied to data centres
The National Association of Insurance Commissioners — the organisation that seeks to unify state-level insurance regulations — was reviewing insurers’ data centre holdings and whether the credit ratings underpinning these projects were justified, according to people familiar with the matter.
While the US insurance industry is regulated on a state level rather than by the federal government, the NAIC’s guidelines are closely followed by individual state regulators and often enacted through state legislation.
The rulemaker would evaluate areas including the creditworthiness of data centre tenants, the exit clauses of leasing contracts, as well as the construction company’s record such as project delays and cost overruns, one of the people said.
The scrutiny comes as insurance capital plays a growing role in AI infrastructure build-outs in the US. Many early-stage data centre projects are obtaining investment-grade ratings to attract large institutional investors such as insurers and pension funds, even while facilities are still under construction.
These credit ratings are mostly privately issued, but are required to be filed to the NAIC as part of the process to determine insurance companies’ capital requirements. Insurers with lower-quality investments must hold larger capital reserves.
Since January, the NAIC has the power to challenge and override credit ratings if they differ from the regulatory body’s own analysis by more than three rating notches. The NAIC says its assessment covers both public and private ratings.
About 20 per cent of US life insurers’ fixed-income portfolios are linked to private and illiquid bonds, according to Moody’s Ratings. The sector’s rising exposure to private credit has turned some investors away, leading to higher borrowing costs in recent months.
Last month, US Treasury secretary Scott Bessent met with state insurance commissioners to discuss regulatory responses over life insurers’ increased exposure to private assets.
This week’s fun finds
World Cup history will be made on this grass. These scientists have spent decades perfecting it
Over the past eight years researchers have bounced balls, stomped boots and abused patches of grass in the search for the perfect turf. They've fed, watered and nurtured different mixes of grass species to see how they'll cope. And they've measured blades of grass millimetre by millimetre to find their perfect length.
"It's a lot of pressure," says John Sorochan, a professor at the University of Tennessee, who has been contracted by Fifa to help oversee the growth, installation and care of the grass pitches at all 16 World Cup stadiums, including five that are covered by domes.
"Those are the ones that really have me worried," Sorochan says, "Because the Sun's gonna come up, but it's not going to come up inside. Plants need light, ideally sunlight, to grow."
Yet the grass pitches they have developed for the different stadiums across the US, Canada and Mexico will be trampled by 22 players at a time (plus match officials) for more than 90 minutes per game, across 104 matches. The ambitions of the world's top football players and billions of fans around the world will rest on how the grass holds up.
