The weekend is here! Pour yourself a mug of Danish blend coffee, grab a float in the pool, and get ready for our longer form weekend reads: • Pop culture lionizes the dazzling brilliance of money managers on the autism spectrum. Reality rarely measures up. (Institutional Investor)• Three Years...
The Cord was not only beautiful, it was one of the most innovative cars of it time, filled with automobile firsts: -First American car to have front-wheel drive.-Horn ring rather than a button.-Holes cut into the hubcaps (to allow the brakes to cool off) Aerodynamic design included: -Enclosed headlights, (a crank...
Succinct Summations for the week ending August 16th, 2019 Positives: 1. Home mortgage refinance apps rose 37.0% w/o/w, above previous increase of 12.0%.2. Import and export prices both rose 2.0% in m/o/m, above the expected 1.0% decrease.3. Housing market index rose 1 point in August from 65 to 66.4. CPI...
The Bond Raters Still Need to Be FixedThe reforms adopted after the financial crisis didn’t resolve the industry’s inherent conflicts.Bloomberg, August 14, 2019       Standard & Poor’s 1, Moody’s and Fitch Ratings, the biggest credit-ratings companies, were major causative factors in the financial crisis. Even free-market acolyte Alan Greenspan admitted as...
My end of week morning train reads: • Mind the Gap 2019: Measuring the costs of bad timing. (Morningstar)• The #TrumpRecession Label Is Going to Stick (Bloomberg Opinion) see also How World Leaders Ruined the Global Economy (New York Times)• WeWork...
The #TrumpRecession Label Is Going to StickPresidents usually get too much blame for economic slowdowns. This time is different.Bloomberg, August 15, 2019         A recession while Trump is president is very different than a “Trump recession.” It happens all the time: During the course of an ordinary cycle, an economic downturn...
This is fascinating: Between 1946 and 1954 in the U.S., the share of food bought in supermarkets rose from 28 percent to 48 percent. By 1963, that number had risen to nearly 70 percent. A&P had so much market power that the Department of Justice went after it for anticompetitive...
There is a lot to think about just now economically: inverted yield curve, slowing Asia and Europe, disappointing wage gains. The chart below shows just how much the USA has increased its tariffs in this “easy-to-win” trade war:   Source: Torsten Sløk, Ph.D., Deutsche Bank Securities (Source)
• Predicting the next U.S. recession (Reuters) see also Global Economic Trouble Is Brewing, and the Trade War Is Only Part of It (New York Times)• The Yield Curve Is Inverted! Remind Me Why I Care (Bloomberg)• Dysfunction Cost Cornell $700...
My mid-week morning train reads: • ~60% of S&P 500 stocks offer dividend yield of >1.7%, beating 10-year U.S. Treasurys (Wall Street Journal)• Asness: Bonds Are Frickin’ Expensive (AQR)• The Seduction of Above Average (Of Dollars And Data)• Superforecasting A Bear Market (Integrating Investor)• The Resurgence of Gold (Penta)...