My back-to-work morning train WFH reads:
• Big Investors Are Giving Up on Crypto Markets Going Mainstream: Bitcoin as a portfolio diversifier hasn’t worked for investors Crypto won’t ‘find a home in institutional asset allocation’. (Bloomberg)
• Good News is Good News: Good News (Irrelevant Investor) but see also Move Over, Inflation: Here Comes the Earnings Crunch: Even as markets delight in the prospect of smaller rate increases from the Federal Reserve, earnings are becoming more of a threat. (Wall Street Journal)
• 10 Reasons Why ESG Won’t Be Stopped: Although demonized, ESG and sustainable investing will survive the backlash. (Morningstar)
• These Stocks Have Protected Investors — Surprising Even the Experts: Dividend stocks have outperformed the market by more than 20 percentage points so far in 2022. (Institutional Investor)
• Americans Have $5 Trillion in Cash, Thanks to Federal Stimulus: The money can help people cope with inflation, but it could make the Federal Reserve’s job harder. (Businessweek)
• ‘Jingle mail’ redux? Goldman Sachs explores the risks of mortgage defaults. (Financial Times)
• The Age of Social Media Is Ending It never should have begun. (The Atlantic)
• A climate reckoning for US housing: Too many homes in harm’s way, ‘too many zeros’ in the costs: As the effects of climate change grow more dire, danger is rising for Americans in floodplains, coastal marshlands, wildfire-prone areas and swaths of land struggling with drought. When disasters strike U.S. communities, taxpayers often pick up the tab. Some experts see a future where people slowly move away from higher-risk areas. Some think a more dire correction is coming. (USA Today)
• Election deniers lose races for key state offices in every 2020 battleground: The candidates could have gained power over election administration. Voters rejected them in the six most pivotal states. (Washington Post)
• The Enduring Mystery of the Dragonfly 44 Galaxy: A growing catalog of huge but dim galaxies such as Dragonfly 44 is forcing astronomers to invent new theories of galactic evolution. (Quanta Magazine)
Be sure to check out our Masters in Business interview this weekend with Dave Nadig, Financial Futurist at VettaFi. The ETF industry pioneer has over 25 years of ETF experience. As Managing Director of ETF.com, he was a key participant in the rise of the passive and ETF industry. Previously, he was Was Managing Director at Barclays Global Investors. He co-authored the definitive book on ETFs, “A Comprehensive Guide To Exchange-Traded Funds,” for the CFA Institute.
Bear markets are relatively rare, and they frequently precede a recession (updated)
Source: Refinitiv; Yardeni Research; New York Times
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