Catch Up Quick

• Coronavirus stimulus talks fall apart in "disappointing" meeting

• Trump signed an executive order prohibiting U.S. residents from doing any business with TikTok or WeChat, beginning in 45 days

• NY prosecutors subpoenaed Deutsche Bank as part of an investigation into Trump's business dealings

• Instagram launched Reels, its highly anticipated TikTok competitor

• WHO clarifies late-stage trials do not mean vaccine is almost ready

• For the first time in its nearly 170-year history, the N.Y. Times made more from digital products than it did from its print newspaper

• The Department of Justice has sued Cigna for fraud

(Extended) Thought of the Day

• Manhattan apartment deals plunge 57% while the number of unsold apartments is now at the highest level in almost a decade

• Mortgage rates hit another record low and applications are up 22% year over year

• Both figures support a trend of urban exodus in which we’ve previously discussed (inbound redistribution of wealth into suburban areas, etc)

• This trend lends interest to a few different stocks, including:

• Rocket Companies ($RKT): 1) recently surpassing Wells Fargo, Quicken Loans (its subsidiary) is the largest mortgage lender by volume in the U.S. 2) focus on digital lending allows for greater scalability and better positioning meet demands of younger, newer homebuyers in an increasingly remote world

• Redfin ($RDFN) & Zillow ($ZG): 1) as disruptors of traditional real estate brokerages, Redfin and Zillow are also well positioned to thrive amidst the crisis due to contactless models 2) virtualizing the home buying experience allows for infinite scalability in addition to a simpler and cheaper process for both buyers and sellers

• HomeDepot ($HD) & Lowes ($LOW): 1) The shift away from urban living bodes well for these two as greater home ownership and record personal savings rates will drive demand for home renovation projects 2) similar to Best Buy, both home improvement retailers have successfully integrated their brick and mortar and eCommerce sales channels, allowing them to outperform in retail

The Bottom Lines

• With individual investors representing record levels of equity market volume, simpler theses like so have a higher chance of gaining momentum given their ability to be widely absorbed