10 Tuesday AM Reads

My two-fer-Tuesday morning train reads:

• If Donald Trump were to weigh in on value stocks this year, he’d call them ugly losers (Irrelevant Investorsee also Are share buybacks jeopardizing future growth? (McKinsey)
• Investing versus Flipping (Research Affiliates)
• How a Fed Rate Hike Could Actually Stimulate the U.S. Economy (Bloomberg)
• Reinventing the Company: Entrepreneurs are redesigning the basic building block of capitalism (The Economist)
• Inside the Quest for Fusion, Clean Energy’s Holy Grail (Time) see also Sovereign Wealth Funds in the New Era of Oil (IMF)

Continues here


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  1. NoKidding commented on Oct 27

    Inside the Quest for Fusion, Clean Energy’s Holy Grail… subscribers only

    • Jojo commented on Oct 27

      I get the whole article and I am not a Time subscriber.

  2. RW commented on Oct 27

    Avoiding the Financial Resource Curse
    We transitioned from agriculture to manufacturing, so why shouldn’t we now transition from manufacturing to services? …

    The question is …very hard to resolve without some idea of the mechanism by which an overexpansion of finance might slow countries down. Alternatively, we might find that financialization and slow growth are both the result of some third factor.

    …a team of economists may have just found that third factor. Gianluca Benigno, Nathan Converse, and Luca Fornaro have a new paper in which they propose something called the “financial resource curse.” This theory says that the real culprit behind slow growth might not be finance itself, but rather large influxes of financial investment from foreign countries. …

    PS: The Bloomberg article on “How a Fed Rate Hike Could Actually Stimulate the U.S. Economy” was a nice example of financialized drivel: reasonable sounding on the surface but no evidence, no counterfactual or risk calculation, no accepted macroeconomic model (the confidence fairy again? swell).

    • willid3 commented on Oct 27

      well you know the conservatives response, i am not a scientist

  3. rd commented on Oct 27

    Interesting column on “robo” annuities. I think this will continue the trend towards cleaner, cheaper financial products that are selected by consumers and their RIA advisors without salesmen and commissions in the middle. Schwab and Vanguard kick-started this process a few decades ago but I think it is just hitting its stride now, and the insurance industry will be one of the next high fee bastions to fall.


    • Init4good commented on Oct 27

      their opinion section disgraces the whole paper. shame because without that section, it’s pretty good

    • rd commented on Oct 27

      As usual, there is a grain of truth in their editorial, but then it gets turned into an absolute. Some of the same points were made by Henry Petroski six years ago: http://www.washingtonpost.com/wp-dyn/content/article/2009/01/23/AR2009012302351.html

      However, there is a difference between what engineers and tinkerers will work on to solve problems and a lot of basic science out there. I didn’t see GE, 3M, etc. stepping up to fund the Supercollider or Hubble Space Telescope.

      There is a role for corporations, NGO foundations, and government to play in basic science and R&D. Simply eliminating government from it would likely delay some discoveries by decades or centuries.

    • rd commented on Oct 27

      Sigh…just another example of the US government’s heavy handed repression of religious freedom. Looting and black market purchase of antiquities is just another form of protected speech and should be worthy of another Supreme Court decision. The fact that many of these are likely derived from Muslim terrorists is just another example of how open-minded Christian evangelicals are to other cultures.

  4. VennData commented on Oct 27

    Always good to surf over to the IMF blog.

    With so much wealth, power, and invested capital in carbon production, we will have a slow down, We are having a slow down. The whole world is.

    Slowdowns and recessions are when the means of production don’t produce whatever people want to buy, for whatever reasons. The world knows how to find, produce, and ship oil (remember those guys you listened to who shouted PEAK OIL! What are they pitching now?)

    The economy will adjust to multiple energy channels. Thank God Barack Obama got us on alternatives when he did (Remember when the loud mouths summarized the whole think into SOLYNDRA! What are they pitching now?)

    Glad to see the GOP following in Bernie Sanders blueprint and authorizing the EX-IM Bank. (remember when the loud mouths decried Soclialism Now they’re voting for the Ex-Im Bank! The ultimate socialism for the rich)


    Republicans are funny, funny little monkeys. Look. Look at them scratch and screech and eat bananas. Just don’t pay attention to a word they say other than the humor factor.

  5. VennData commented on Oct 27

    Paul Ryan doesn’t want anyone to pin the budget deal on him


    ​​Responsibility. Accountability. Leadership.

    ‘Up the chain of command​’ the-buck-stops-hereism of the Republican party.

    He would have made a GREAT Vice President, “Wahhh… I would have never done what Mitt did!”​

    • willid3 commented on Oct 27

      and thats why we register cars!

    • Iamthe50percent commented on Oct 27

      If I am arrested, will they confiscate my tires? What’s the point? It seems like needless paperwork and cost. Tire recalls? Put them on the 6 O’clock news. Or do I register my tires in case they get stolen? Why don’t I register my lawnmower? Or my steak knives? Hey! They are dangerous weapons! It makes more sense to register the kitchen knives than tires.

      I did have a dangerous defective tire once on my ’68 Mercury. I don’t buy Allstate tires any more.

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