Newsletter - Week of Oct 23, 2023
Hi All,
This week's theme is TRUST. This will make sense as you read more. Officially, autumn has arrived. Halloween decorations are popping up here and there, and we get to sleep one more hour this weekend with the end of British Summer Time today. I also wanted to celebrate Claudia Goldin*'s Nobel Prize award by proving 'gender pay gap' is a real thing!
“We are never going to have gender equality, or narrow the pay gap, until we have couple’s equity” - Claudia Goldin
Recently, I had a chat with Lisa, one of my architect friends, who focuses on sustainable urban planning. She shared insights about her current project, which aims to make London more female and family-safe and friendly. This conversation sparked an a-ha moment for me—realizing that 'female safety' hasn’t been a variable significantly considered in city and building design by policymakers and architects until now.
Lastly, we were graced with a lunar eclipse yesterday. The celestial event, often seen as a symbol of change and transformation, seemed to align perfectly with my thoughts on the necessary evolution towards gender equity, not just in the workplace, but extending into the realms of urban planning and daily life.
As always let me know if you have any suggestions and/or feedback! If you liked it, please subscribe and share it with your friends, colleagues and family. Also, ping me if you want to collaborate! Previous newsletters can be found here.
Have a great week! :D
📈Markets & Investing
- My weekly global market recap can be found here.
- This week, I am sharing some insights from the Future Investment Initiative Institute (FII Institute)'s 'change makers' in finance and lessons from Warren Buffet & Charlie Munger via Chris Davis. Their message ties back to what Peter Thiel talks about in his book 'Zero to One' - I've added his speech at the end here. This week's focus is less on technicals and more on principles and philosophy.
- 1) Board of Changemakers key takeaways: 11 panelists (incl. Ray Dalio, Jamie Dimon, Larry Fink and Jane Fraser, Dr. Patrice Motsepe, Noel Quinn, David Rubenstein, Stephen A. Schwarzman, Neil Shen, David Solomon, etc.) deliberated on the transformative role of AI, its societal implications, and inclusivity. They highlighted concerns about AI's environmental impact, notably its electricity consumption. The discussion touched on global economic forecasts, with emphasis on inflation, geopolitical tensions, and the state of various economies. Finally, the value of active vs. passive investment and the role of talent and entrepreneurship in driving growth were addressed. Panelists expressed both concerns and optimism for the future, with a recurring theme of humanity's resilience and adaptability
- 2) Warren Buffet's advice - write your own obituary: how do you want to be remembered?: On one end of the spectrum, there are people who operate in a fear-based, fight-or-flight mode, while on the other end, there are those who operate from a place of love and trust. These represent two distinct modes of life, each resulting in different outcomes and approaches to situations. Some are driven to win and amass as much as possible until their last breath, while others aim to simply do well. Warren Buffet's advice on this is to write your own obituary and reverse engineer how you want to live your life. Additionally, Buffet highly recommends reading Dale Carnegie's 'How to Win Friends and Influence People'.
- 3) Here is another additive case by Peter Thiel for choosing to live a 'love and trust-based' way of living. If you work in a competitive industry like me sometimes, you get challenged to have faith in humanity, but I believe we can do much more and better by giving the benefit of the doubt to people and embracing the 'love and trust' way of living. You can start the ripple of hope by embodying this principle. Sometimes it requires almighty strength, hope, and faith, but in the end, it's worth it. How do you want to be remembered? Share your thoughts!
🌍 Sustainability
- Green, Social, Sustainability, and Sustainability-linked (GSSS) bonds are on the rise these days esp. after the green bond supply bonanza during the pandemic. In the case of green bonds, the 'greeniums' have shrunk to on average 2bps in certain DM sovereign and credit green bonds vs. 20 bps in 2021 that these bonds look attractive if you are into investing in bonds that focus on energy transition and green projects. Check out my earlier wirte-up on this to learn more about it. S&P Global came up with the latest report that 2023 global sustainable bonds issuance is expected to exceed $900 bn.
- Improving energy efficiency top of the agenda in fight for net zero Research shows that about 70 percent of energy is wasted between producer and consumer, but is enough being done to turn this round? (FT, Oct 24, 2023)
Key takeaways:
- Global investment in energy efficiency is poised to hit $600 billion in 2023 due to heightened urgency from climate crises and geopolitical tensions, yet to meet the IEA's target of a 4% annual improvement, investments need to triple to $1.8 trillion.
- Over 70% of energy is wasted between production and consumption, with major losses in electricity generation, transportation, and industrial processes, primarily through heat losses.
- Initiatives like Local Law 97 in New York and similar regulations in Europe are pushing for reduced energy waste, though far more action is needed to significantly cut global energy consumption and emissions.
- Artificial Intelligence (AI) and Combined Heat and Power (CHP) technologies are emerging as key solutions to enhance energy efficiency, with AI aiding in better energy management and CHP in capturing and reusing heat waste.
- Governments are increasing energy efficiency spending, with the US and UK allocating substantial funds towards improving building, industry, and vehicle efficiency, although more aggressive policies and investments are required to meet global energy efficiency goals by 2030.
- IEA warns energy companies against banking on strong oil demand (FT, Oct 24, 2023)
Key takeaways:
- The International Energy Agency (IEA) cautions against over-investment in oil and gas, deeming them no longer "safe or secure" options amidst evolving risks, driven by geopolitical crises and climate change.
- IEA's head, Fatih Birol, reiterates the call to halt new fossil fuel investments, reflecting on recent substantial oil deals by Chevron and ExxonMobil, which signal a strong bet on fossil fuels' longevity despite the IEA's contrary stance.
- The agency's projections show a significant drop in oil demand, nearly halving by 2050 if governments honor their clean energy pledges. This scenario contrasts with OPEC's outlook, which foresees oil demand peaking at 116 million barrels per day by 2045.
- If pledges are fulfilled, fossil fuels would constitute merely 32% of the global energy supply by 2050, a drastic reduction from 80% in 2022, with the majority shift towards renewables, nuclear, and carbon-captured coal and gas generation.
- Despite the promising tilt towards cleaner energy, the IEA emphasizes the need for more ambitious government policies to keep global warming within the 1.5°C threshold, as per the Paris Agreement. The upcoming COP28 climate conference is seen as a critical juncture to reinforce and possibly escalate global climate commitments.
- ‘Catastrophe’ Bond Market Headed for Major Surge in Issuance (Bloomberg, Oct 24, 2023): World Bank targets $5 billion in outstanding cat bonds & Issuance comes as insurers increasingly unable to cover losses.
- Lastly, here are two other my favorite 'insightful' articles from Sam Matey and Hannah Ritchie.
Sam Matey
Hannah Ritchie
🧘🏽 Conscious living
1) Introducing 'Project Eudaimonia!':
"Only those who engage in the continual struggle to clarify their thinking to remove sources of contradiction and incoherence can be said to live worthwhile lives.
The unexamined life is NOT worth living." -Socrates
In Greek, Eudaimonia literally means 'happiness,' 'well-being,' and 'success.' One of my 2023 goals is to become more of me and to explore 'conscious living' as a way of life that is kind, inclusive, and sustainable to ourselves, animals, and the planet. I've kicked off this series in August and want to invite you over to this project! You can check our content and/or contribute by writing content or recommending some resources. The project is composed of four parts. 1) Book club, 2) 5-minute philosophy, 3) mindfulness/meditation tips, and 4) leadership. More content to come on these later on my Instagram first. @eudaimonic.life and this website under the 'Conscious Living' tab.
2) Leadership: Rockefeller - founders podcast: What I learned from reading The 38 Letters from J.D. Rockefeller to His Son by John D. Rockefeller. Trust is one of the principles Rockefeller emphasizes as he dominated the oil industry with Standard Oil, yet Rockefeller wasn't naive of course - his focus was always on 'dominating,' 'conquering,' and 'winning,' but with human decency and integrity (at least that is how he appears in his letters to his son).
*Bonus: Here are 305 books covered by the 'Founders' podcast.
3) Productivity - My weekly check-in questions. What's in yours?
Over the past couple of decades, I have been obsessed with productivity, and how to master time management to squeeze juice out of every single second in life. I don't know why, but I always had this sense of 'urgency' in me - that I had to get there fast, rushing through everything. I didn't even know where that final 'there' was, but I was always in a hurry and impatient. When I was in kindergarten, I used to manage my time in minutes, and since then, I have tried millions of different tactics and strategies, but none of them stuck with me. So, I came up with this rule. MAKE IT SIMPLE! So that I can have a quick check-in with myself even for 5 min when I am on the go.
⭐Sharing my self-check-in list, let me know if you have yours! What's in there?
- Plan for the week ahead
- Catch up on emails, readings, and podcasts
- Check your mental health and joy first and foremost! Are you happy?
- Rate your life (go through the wheel of life and rate each category - vitality/abundance/career+mission/spirituality/joy/community/family/love)
- Go through a vision board and feel it!
- Go through a list of questions for yourself
- Think about how you can improve upon and increase the outcome by 10x
- Celebrate all the wins and victories. Pat yourself on the back with a smile.
- Check your progress against the letter to yourself from the prior month
- Think about what to write about in your quarterly report and annual report - 'Corporate EJ Elena Shin.' Visualize and imagine how you will present this to your life board members (heroes of my life - living or dead).
👽 AI
- ChatGPT 101 Explainer: Anyone who wants to get started on ChatGPT (esp. if you are a liberal artsy background), pls check out my earlier post. Things have evolved since my first write-up and now, it can connect to the internet (Bing) via the paid subscription, but the post is a great intro explainer. :)
- GS talks about how companies and investors are navigating the rise of Generative AI (Gen AI), and how it's reshaping the landscape of investments and mergers and acquisitions (M&A):
Key takeaways:
- Early Stages of Adoption:
- The adoption of Gen AI is in its early stages, with many enterprises still exploring the technologies through proofs of concept rather than full-scale implementation.
- Despite the nascent stage, there's a consensus among businesses and investors about the transformative potential of Gen AI across all industries.
- Investment Focus:
- Currently, a significant portion of investments is directed towards building the necessary infrastructure to power AI technologies in the future.
- This includes investments in semiconductors, data centers, and systems which are fundamental to advancing AI capabilities.
- M&A Activity:
- M&A activity is expected to increase as enterprises become more comfortable with AI technologies and as AI companies mature.
- However, the uncertainty surrounding the application and impact of AI in different industries has kept M&A activities relatively limited for now.
- Some specific domains like legal research and customer support, where Gen AI tools have clear applications, have seen notable M&A transactions.
- Investor Sentiment:
- Investors are rewarding companies that take proactive steps towards integrating AI, reflecting a positive sentiment towards those preparing for a future shaped by AI.
- The sentiment is expected to drive more M&A activities as companies and investors become more familiar with the practical applications and benefits of AI technologies.
- Long-term Transformation:
- The dialogue suggests that the transformation brought about by Gen AI will unfold over many years, with its full impact across industries yet to be realized.
- The integration of enterprise data with Gen AI's intelligence capabilities is seen as a key driver of value in the long term, although it will take time to bring this vision to fruition.
- Evolving Investment Landscape:
- As the AI landscape evolves, the focus of investments may shift from infrastructure to front-end applications and services, although it's suggested that it might still be early for consumer-centric AI applications.
- The continuous advancements in AI, coupled with growing enterprise interest, are expected to sustain excitement and drive further investments and M&A activities in the AI space in the foreseeable future.
- Here is another one you should check out. Ashlee Vance's 'Hello World' -Bloomberg Originals is one of my favorite series.
- Lastly, check out Bill Gate's latest interview on AI.
😍 My Favorites
📚 Eudaimonia Book Club: Introducing one of my favorite books 'New Earth' by Eckart Tolle as part of the Project Eudaimonia book club.
🎙️Podcast: Cathy Heller's Power of Manifestation. Are you into 'visualization' or still a skeptic of 'manifestation'? Pls check out this podcast to challenge your skepticism or enrich your understanding of how manifestation works in a secular way.
📺 YouTube: Animal Consciousness. Do you think animals have consciousness and emotions? Personally, I do. It is just that we humans who cannot understand them. Check out this enlightening explanation on animal consciousness.
🥗Health: I am trying to get into better exercise routines and health monitor framework (along with #Whoop). This episode will make you want to get more disciplined around zone 2 and 5 training as well as type 1 and type 2 muscle fiber training to optimize your strength and endurance.
Key takeaways:
1) High-protein diet is important - specifically targeting a gram of protein per pound of body weight, along with the role of the amino acid leucine in promoting muscle growth.
2) Boost your medical literacy for yourself! The discussion touched on the evolution from Medicine 1.0 to Medicine 2.0, indicating a shift towards a more proactive and educated patient approach in Medicine 3.0, which emphasizes early intervention and prevention rather than just disease treatment.
3) High VO2 max and muscular strength were underscored as critical metrics for longevity, stressing on exercises that work on type two muscle fibers to enhance muscular strength.
4) Continuous Glucose Monitors (CGMs) is a crucial tool for real-time glucose monitoring, aiding individuals in understanding their glucose responses to different stimuli like food and exercise.
5) Early cancer screening & hormonal profiling for more accurate diagnosis and treatment is key to better outcomes e.g. breast cancer detection.
👍 Quote of the week
