Weekly Reads
Weekly Reads - June 13, 2022

Please read the Unison Asset Management Social Media Disclaimer



The lines are blurring between the non-acholic and acholic beverage industries with companies from each side dipping their toes into each other’s market. Prior to 2018, Coca-Cola had not launched an alcoholic product in over 40 years. With the declining consumption of soda for healthier alternatives and the increasing shift toward premium spirts over beer and low value products we are seeing a growing trend of partnerships between beverage companies across industry lines. As the beverage market becomes oversaturated with new entrants it will be crucial for top brands to pool resources together and deliver products that will sustain and extend their brand strength in existing and new markets. 


One of the worst sectors in terms of shareholder return over the last decade is now expected to be the biggest winner in 2022. Despite oil prices above $100 and government pressure to increase drilling, investor confidence is at an all-time high for fossil fuels. One can argue these high oil prices could destroy long-run demand for oil as consumers search for green energy alternatives as a way to reduce their reliance on oil. This survey serves as microcosm for what is happening in the greater financial markets with investors shunning long time winners for long time losers as a way to hedge against inflation and a potential recession.  


The average homebuyer is being priced out by real estate investors hoping to take advantage of the housing shortage that was exacerbated by COVID. Investors bought nearly one in seven homes in 2021, the most in at least two decades with metropolitan areas such as Atlanta, Charlotte, Miami, and Phoenix having investor participation above twenty percent. In many cases these investors are choosing to raise the rents on these homes inflating rental prices as well as sale prices in the area. If this continues, we could see a mass migration out of these areas and/or a housing crashing as the average worker will not be able to grow their earnings power relative to rental and housing prices.