My morning reads:
- Twitter says Infowars hasn’t ‘violated our rules.’ It looks like that’s not the case (CNN Money)
- Broken Clockism: The “Skyscraper Curse” is Bogus (Building the Skyline)
- Vanguard Warns of Worsening Odds for the Economy and Markets (New York Times) but see A Q&A Discussion with Vanguard Researchers on the “Fair Value CAPE Ratio” (Alpha Architect)
- New data makes it clear: Nonvoters handed Trump the presidency (Washington Post)
- The psychology behind why you always want to sit in the same seat (Quartz)
- Fidelity Bets on Zero-Fee Index Funds (Bloomberg Businessweek)
- What People Will Pay For (Reformed Broker)
My end of week morning reads:
- ‘Stories’ was Instagram’s smartest move yet (Record)
- “What Have We Done?”: Silicon Valley Engineers Fear They’ve Created a Monster (Vanity Fair) see also What Silicon Valley still gets wrong about innovation (Venturebeat)
- Forget Old Glory — Why Betsy DeVos’s Family Yacht and Others Fly Foreign Flags (Capital and Main)
- Good Things Happen in Book Stores (Medium)
- Meet The Scammers Who Used MoviePass For Vengeance, Free Popcorn, And Pooping (Buzzfeed)
- “Active Money Manager Model Is No Longer Viable” (Bloomberg)
- Jim Bianco, one of my favorite market analysts/researchers, points out that the “active money manager model is no longer viable.” He explains:
“The chart [below] shows flows into passive ETFs (red) and active mutual funds (blue). Highlighted on the chart is the depth of the financial crisis, September 2008. This appears to be the inflection point where investors soured on active management in favor of passive investing. So, if one thinks a bear market or more volatility will save active managers, the last bout certainly didn’t.”
I believe that the death of active management has been an exaggerated. I suspect that high active share managers, […]
My midweek morning reads:
- Your Fees Are Bull%$&* (Institutional Investor)
- Quant Hedge Funds Trail Old-School Ones, But Reap All the New Money (Chief Investment Officer)
- The Ultra-Pure, Super-Secret Sand That Makes Your Phone Possible (Wired)
- Australia’s China reset (The Monthly)
- New Poll: 43% of Republicans Want to Give Trump the Power to Shut Down Media (Daily Beast) see also Trump haters will love Rick Wilson’s scathing new book, Everything Trump Touches Dies (The Week)
Monday Morning Reads:
- One investing firm is behind a string of this year’s big money-making moments in Silicon Valley (Recode)
- They have weaponized social media. They have weaponized the First Amendment. They have weaponized civic discourse. And they have weaponized, most of all, politics. (New York Times)
- San Francisco is a ‘nirvana’ for China’s main intelligence agency — and the center of an intensifying spy war (Business Insider)
- The Cult of Trump Makes the Worst Conspiracy Theories Mainstream (GQ)
- Apple Kicked Alex Jones Off Its Platform, Then YouTube And Facebook Rushed To Do The Same (Buzzfeed) see also The Lasting Trauma of Alex Jones’s Lies (The Atlantic)
- How Econ Numbers Can Lead You (and Me) Astray (Bloomberg View) see also When Economic History Improves With Time (Project Syndicate)
- How ‘hackers, founders, and freaks’ built Silicon Valley (Recode)
- How music has responded to a decade of economic inequality (Vox)
The weekend is here! Pour yourself a mug of drip coffee, grab a seat on the canoe, and get ready for our longer form weekend reads:
- Inside the Always Nasty, Frequently Sexist, and Often Litigious World of Financial Twitter (Institutional Investor)
- The Insane Saga of the Fake Saudi Prince Who Scammed Miami’s Rich and Famous (Vice)
- The People’s Penthouse: In a cooling market, shared lounges and pools are taking over what used to be residential pinnacles for the elite. (New York Times)
- Surrendering to Rising Seas Coastal communities struggling to adapt to climate change are beginning to do what was once unthinkable: retreat. (Scientific American)
- Billionaires gone wild The American media landscape, like the rest of the country, is being reshaped by the whims of the ultra-rich (CJR) see also Survival of the Richest (Medium)
- In ‘Quiet Skies’ program, TSA is tracking regular travelers like terrorists in secret surveillance: Did you scan the boarding area from afar? Have a cold, penetrating stare? Sleep on the plane? Use the bathroom? Talk to others? (Boston Globe)
- Bubbles 10 – Both Sides (Armoxon)
- How music has responded to a decade […]
Succinct Summation for the week ending August 3rd, 2018
- Unemployment rate fell 0.1% in July from 4% to 3.9%.
- ADP employment report shows 219k increase in July, beating the expected 173k.
- Pending home sales rose 0.9% in June. meeting the high end of expectations.
- Challenger job cut report shows layoffs decreasing form 37,202 to 27,122 m/o/m.
- Personal income rose 0.4% m/o/m as expected.
- Same store sales rose 4.2% w/o/w, higher than the previous 3.8% rise.
- Non-farm payrolls rose 157k m/o/m, down from June’s 213k rise and on the low end of expectations.
- MBA home mortgage applications fell a seasonally adjusted 3% w/o/w, for third weekly decline in a row.
- The trade deficit fell from -43.1B to -46.3B for month of June.
- Jobless claims came in at 218k w/o/w, slighter higher than previous 217k.
- Factory orders rose 0.7% m/o/m, missing the expected rise of 0.9%.
- Construction spending fell 1.1% w/o/w, well below an expected increase of 0.3%.
My end of the week reads:
- As Cost of Living Rises and Wages Stagnate, Big City Freelancers Look to Small Cities (Slate)
- How Sellers Trick Amazon to Boost Sales (Wall Street Journal)
- Surrendering to Rising Seas. Coastal communities struggling to adapt to climate change are beginning to do what was once unthinkable: retreat (Scientific American)
- How We Evaluate Our Current Circumstances: Steven Pinker (Los Angeles Review of Books)
- How Human Smarts Evolved: By counting the number of neurons in brains, one scientist revolutionized our view of why Homo sapiens and nonhuman primates are so much smarter than other animals. (Sapiens)
- This Is My Nerf Blaster, This Is My Gun (Topic)
Grabbing headlines lately, Disney outbid Comcast’s $65 billion all cash proposal to acquire Fox Assets on July 19th, with a $71.3 billion offer. Comcast will now focus on acquiring a controlling stake in Sky plc, while we wait for international regulators to approve the Disney/Fox acquisition, set to be completed in H1:19.
My its August already? morning reads:
- Are Stock Buybacks Starving the Economy? (The Atlantic) see also Buybacks Are Great in Theory, Less So IRL (The Big Picture)
- Smart guys are the most dangerous: Prone to overconfidence, and susceptible to overthinking – both deadly sins in money management. (Behavioral Macro)
- (Let me save you a click: No.) Is the Key to Beating the Market Written in the Stars? (Bloomberg Businessweek) see also 1998 Online Investors Consult Astrology To Chart Their Financial Courses (Wall Street Journal)
- David Pilling: The growth delusion (Washington Post)
- Deadly spiral: As an AIDS epidemic runs out of control and deaths rise above 30,000 a year, Russians look for scapegoats (Coda)