10 Tuesday AM Reads

My two-fer-Tuesday morning train reads:

• How the Stock Market Performs Before and After Big Drops and Big Rallies (Crossing Wall Streetsee also Yellen Confronts Greenspan Oasis Warning as She Weighs Rate Rise (Bloomberg)
• What to do during market volatility? Perhaps nothing. (Vanguardsee also Investment Strategies for Volatile Markets (Fidelity)
• Ten Smart Things Said About Market Corrections (Ivanhoff Capitalsee also The Problem Now Is The Overhead Supply (All Star Charts)
• Why some billionaires are bad for growth, and others aren’t: Not all inequality is created equal (WaPo)
• Preparing for the Impact of Driverless Cars (New Geographysee also Ways to think about cars (Benedict Evans)

Continues here


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Discussions found on the web:
  1. VennData commented on Aug 25

    I’ve been scratching my head wondering how the fuck these Bush people seeped into positions of power.

    “…But in doing so, he said the practice was “more related to Asian people,” and that he wasn’t directing it at Latinos, opening up a new front in Democratic criticism. This is ludicrous for the Clinton campaign and others to suggest that somehow I’m using a derogatory term,” Bush said. “What I was talking about was the specific case of fraud being committed where there [are] organized efforts — frankly, it’s more related to Asian people — coming into our country, having children, in that organized efforts, taking advantage of a noble concept, which is birthright citizenship…”


    That Fooled No One!

    • rd commented on Aug 25

      Intrepid reporters could be asking them about the Nissei internment during WW II and whether or not we should repeat that for all second-generation immigrants now. I think The Donald votes yes (BTW – I think he has Canadian relatives, so possibly some of his relatives could be interned or deported).

    • rd commented on Aug 25

      BTW – I am breathlessly waiting for The Donald to go into his “Birther” diatribes about Ted Cruz. He won’t even have to claim that Cruz’s birth certificate is forged!

    • lucas commented on Aug 26

      “Mair said the term (anchor baby) “probably encompasses quite a few non-Hispanic immigrants who in many cases come from richer countries and who are more educated (think Asian economies, especially) who want to give their kids access to the US economy without ever having to deal with our ridiculous and almost un-navigable immigration system as it applies to better-educated and skilled prospective immigrants.”

      No, that is not the reason, but it may be a beneficial side effect. The reason Chinese parents have so-called anchor babies is because it is an illegal second child. The baby will not be allowed Chinese citizenship. Being stateless creates unimaginable life long problems for a person, so they come to America to give their baby citizenship somewhere. They do not come to America illegally; they have proper Chinese passports and proper visas from the US government.

  2. rd commented on Aug 25

    Interesting articles on autonomous cars. I think the breakthrough market for them is going to be baby-boomers a decade from now who want to stay in their homes but are trapped if they can’t drive. There would be many people who would pony up the cash to buy an autonomous car so they have freedom of movement without having to rely on people coming to pick them up. Disabled people would be a similar market.

    • VennData commented on Aug 25

      Here’s your entrepreneurial concept:

      Service station that maintain, wash, fill up your automated car.

      This would be especially useful for folks like me who want a fleet of them they can just send out into the streets hooked up to Uber/Lyft picking up passengers in the ultimate no-effort business model.

    • The Window Washer commented on Aug 25

      Car to Go is company owned by Benz. As soon as the law opens up the will send the first 100k cars out into their own fleet. Destroying Uber/Lyft as they wait for other car makers to sell their first few years of production to in high margin sales to individuals (think Tesla) before they have enough capacity to decide to make low margin fleet sales to Uber/Lyft.

      So much for the “buy a fleet and send them out”.

      Your self driving car will drive onto it’s own charger and drive itself through a car wash. Though you will have to send it to an existing staffed car wash to get the inside done.
      I think most people will bite the bullet and fill up the wiper fluid.

    • willid3 commented on Aug 25

      always wondered how those who dont like citizenship based on birth place, think it will work with having have parent(s) who are American? cause if we did it that way, just how far back would you have to go to prove that? and how would any one end up being American? short of you family being here since the country was founded? and where would they have the records to prove that?

    • rd commented on Aug 25

      Just make every person re-apply for citizenship at age 18. If the citizenship board doesn’t like your responses, they can deport you to the country that your last name originates from. If they won’t take you, the US Navy can just put you in a small boat off their coast so you can go ashore yourself illegally.

      Sure fire solution to solving the illegal immigration problem. Just turn it into an illegal emigration solution.

  3. RW commented on Aug 25

    Chinese government debt has risen to 41% of GDP? OMG! Call Rogoff and Reinhart!

    China Government Debt to GDP 1995-2015

    China recorded a Government Debt to GDP of 41.06 percent of the country’s Gross Domestic Product in 2014. Government Debt to GDP in China averaged 33.93 percent from 1995 until 2014, reaching an all time high of 41.06 percent in 2014 and a record low of 19.99 percent in 1997.

    • rd commented on Aug 25

      Like Canada, the Chinese debt problem doesn’t reside at the federal government level, but instead at local government, corporation and individual level.

  4. farmera1 commented on Aug 25

    Ref. the chart “S & P 500 Trailing 12-Month PE Ratio” at the bottom of your reads on http://www.bloombergview.com/articles/2015-08-25/ritholtz-s-reads-not-all-inequality-is-created-equal

    Here I thought I had the PE ratio figured out.

    There are all kinds of PEs (hence you always have to know which the author is talking about) for the S and P 500, some are based on future estimates of earnings some present quarter earnings , some on trailing 12 months earnings. The one I thought was meaningful was based on previous 12 month as reported earnings. But the link I have been using gives a significantly different number 19.43 vs the one given in BR’s Bloomberg reads which is 16.75.

    Here is the link for PEs (19.75)I’ve been using. It description seems to be the same: “Price to earnings ratio, based on trailing twelve month “as reported” earnings.” with S&P 500 for the basis.


    Can anyone direct me to a meaningful link for PE ratio based on trailing 12 months as reported earnings and also maybe explain what I am missing.

  5. farmera1 commented on Aug 25

    There is an error in my posting on PEs. The PEs I’ve been using is 19.43 not the 19.75 given in my posting but the idea is the same. There is still a significant difference between the PEs for what I thought would be the same number.

  6. VennData commented on Aug 25

    For all you doubters out there who laughed when VennData said Trump was out to build a customer list to sell products, services, and media too…

    The baseball hat Donald Trump wore on his mission to the Mexican border on Thursday quickly achieved meme status. And now, you can buy your own copy of the hat, which is emblazoned with Trump’s presidential campaign slogan, “Make America Great Again.” On Friday morning, a Trump campaign aide confirmed to Business Insider that the hats are on sale at Trump Tower in Manhattan and are “coming soon to DonaldJTrump.com.” The aide said all of the campaign


    • VennData commented on Aug 25

      Fox News goes to war with Donald Trump

      ​”….​Donald Trump’s surprise and unprovoked attack on Megyn Kelly during her show last night is as unacceptable as it is disturbing. Megyn Kelly represents the very best of American journalism​…”


      Fox is not a News organization but a partisan rag. If a Presidential candidate calls you out on your antics good for them.

      The sentence “…Megyn Kelly represents the very best of American journalism​…” is laughable. If she didn’t look hot she’d still be back putting pissing drunks away for disorderly conduct.

  7. willid3 commented on Aug 25

    do we have too much stuff, and too few folks who want stuff?


    seems that if you dont pay people, they dont buy stuff. odd how that works out

    i always wondered why if its good for a company to give executives stock as part of their compensation, why wouldnt that also bee good for all employees? seems there isnt a reason to do that if the purpose of that was to make the executives be aligned with the stock holders, why wouldnt that be good for all employees?

  8. willid3 commented on Aug 25

    hm. could it be that now companies will actually be judged on such archaic concepts as profits as opposed to growth? might hit a few companies if this were to spread huh?

  9. VennData commented on Aug 25

    CHINA: Nobody understands what we’re doing

    “…​The Chinese government has started to change its messaging on the country’s stock market crash. The government usually blames outside forces and short-sellers for deep declines in markets in Shenzen and Shanghai, but on Tuesday the government started singing a different tune.​ ​The Chinese government is now saying investors simply don’t understand China’s growth model.​..”


    ​I understand. Your leading party apparatchiks want to bang young hotties and jail the guys that beat them you up in high school​, have money, travel, and have endless piles of cool things. You would be a hopeless peasant without legions of troops at your disposal. What’s there NOT to understand?

    • Concerned Neighbour commented on Aug 25

      I think it’s a combination of believing it’s rigged, believing white collar criminals get away with all kinds of illegal behavior, and just not having much money to invest.

      It’s too bad we missed the golden opportunity to break up the big banks and start holding their leadership accountable at the start of the financial crisis (i.e. the Scandinavian model). I’d argue confidence in our institutions would be much higher had we done so.

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