10 Thursday AM Reads

Well, that was interesting! I am beginning to feel genuine empathy for equity Bears in this environment. No matter, our morning train reads will bring you up to speed:

• Lessons From the Long Bull Market: What most of us missed. (Morningstar)
• These Five BAML Maps Show the Major Global Trends Investors Need to Know: Robots, aging, food prices, political union, and stock-market value (Bloomberg)
• Fed Funds Future: September is looking more certain as liftoff date for rates (WSJ)
• The Future of Work: Why Wages Aren’t Keeping Up (Pacific)
• Understanding Causality: Did Elon Musk build that? Yeah, but he had lots of help. (BV)

Continues here



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    • VennData commented on Aug 13

      “…Well, that was interesting! I am beginning to feel genuine empathy for equity Bears…”

      One way to turn off the emotional support and start laughing at them again is to watch Rick Santelli foam at the mouth declaring his Austrian, Randian, Republican beliefs to be physics, articles if faith.

  1. VennData commented on Aug 13

    News from Illinois and the Goveernor who want sot make a name for himself.

    Republicans will not support distribution of Federal monies unless money for cancer screening and childhood disabilities removed.


    Nice guys. GOP boys call this health spending a “poison pill”


    Anything to Further Rauner’s career with the Tea Party.

    Trump/Rauner in 2016!

  2. RW commented on Aug 13

    China 2015 Is Not China 2010

    …some liberals also used to complain about Chinese currency manipulation.

    But that was a while ago — mainly in 2010. And the underlying situation has changed, a lot.

    First of all, China has experienced a very large real appreciation since 2011, partly due to higher inflation than in its trading partners, …

    Meanwhile, China’s domestic economy has clearly weakened, creating a clear case for looser monetary policy. ….

    NB: An exchange in the comments WRT the above article adds further illumination (names and some text redacted)

    There should be no question whether a currency is under or over valued.

    If a country is running a current account (trade) surplus, the currency is under valued.

    If a country is running a current account deficit, the currency is over valued.

    In Q2 2015, China ran a current account surplus of 2.1% of GDP. China’s currency was under valued in Q2 2015. The recent devaluation will only make China’s currency more under valued and grow their current account surplus, at the cost of jobs in the rest of the world. …

    It’s simplistic just to point to the current account as if it were a singular indicator of whether a currency is appropriately valued.

    For one thing, the current account doesn’t just reflect imbalanes in traded goods, but also capital flows (since its essentially the obverse of the capital account).

    Very often, capital flows for perfectly legitimate reasons (such as: growth in a country unexpectedly slows…), even persistently.

    The big question is probably whether the national government of the country is accumulating foreign reserves, in excess of its requirements for insuring itself from insolvency and currency turmoil. Those flows are what currency manipulators use to maintain a persistently mispriced currency (though, some also have sovereign wealth funds that invest internationally, so even that metric is not so simple…)

    Note: China does in fact have foreign currency reserves far in excess ($3T) of normal requirements. This is not surprising because China has indeed engaged in currency manipulation.

  3. Jojo commented on Aug 13

    The Microbes In Your Home Could Save Your Life
    We live in fear of the bacteria that inhabit our homes and buildings. But our health may depend on preserving theirs.

    By Rinku Patel
    Posted July 7, 2015

    We live in fear of the microbes that inhabit our homes and buildings, but we don’t have to.


    • willid3 commented on Aug 13

      lets not tell any one that microbes also inhabit the outdoors too. and to try top avoid them you need either go into space (where the only microbes will be in your space craft, of get a really special clean room, that you can never ever leave!)

  4. VennData commented on Aug 13

    Hilarious how this naive people think Bernie Sanders is a Democrat. He’s not. He’s a socialist. Where does Socialism work? Cuba? USSR? North Korea?

    Did it work when Ralph Nader ran and gave us George Bush?

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