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March 2018
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Wall Street Journal (March 1)

2018/ 03/ 03 by jd in Global News

“Donald Trump made the biggest policy blunder of his Presidency Thursday by announcing that next week he’ll impose tariffs of 25% on imported steel and 10% on aluminum. This tax increase will punish American workers, invite retaliation that will harm U.S. exports, divide his political coalition at home, anger allies abroad, and undermine his tax and regulatory reforms. The Dow Jones Industrial Average fell 1.7% on the news, as investors absorbed the self-inflicted folly.”


Reuters (February 21)

2018/ 02/ 23 by jd in Global News

“The recent surge in market volatility, by some measures one of the most dramatic on record, will have zero impact on investor returns beyond a few months. Literally zero.” Investors are better to hold tight to their investments. “In fact, the turbulence that wiped $4 trillion off the value of world stocks earlier this month is already fading.”


Barron’s February 21)

2018/ 02/ 22 by jd in Global News

“Retailers had a great holiday season to end 2017…but not all of them will be able to hang on to that momentum throughout the year.” Despite some gains, such tighter inventory control and higher gross margins, “investors will be more focused on whether or not companies can sustain that momentum, given how retail was trounced last year by worries about and e-commerce in general.”


New York Times (February 6)

2018/ 02/ 07 by jd in Global News

Investors believe “policies to stoke growth are going to work so well that they will overheat the economy, and force the Federal Reserve to try to slow things down by raising interest rates faster than expected. Sometimes you can have too much of a good thing. Don’t forget what set off the plunge on Friday: better-than-expected job growth numbers.”


Institutional Investor (January 31)

2018/ 02/ 01 by jd in Global News

“Bitcoin’s wild price swings have investors wondering how to short the digital currency, as there would be a lot of money to be made in the latest craze in investing.” Alas, this isn’t so easy. Though Bitcoin futures trade openly, the Chicago Mercantile Exchange is charging “an initial margin of 47 percent of the futures’ value owing to the volatile nature of Bitcoin.”


Wall Street Journal (January 9)

2018/ 01/ 10 by jd in Global News

“The S&P 500 inched higher Monday, extending this year’s run of records. Stocks have begun 2018 on an upbeat note, buoyed by investors’ optimism over the global economy and bets that central banks are unlikely to pressure markets by raising interest rates faster than expected.”


Barrons (December 30)

2017/ 12/ 30 by jd in Global News

“Largely absent during the economy’s eight-year recovery from the financial crisis, inflation is on track to pick up in 2018—and it might just catch investors off-guard.” Even a return to modest inflation, e.g. 2.5%, would be a jolt that “could reshuffle the market.”


Institutional Investor (November 13)

2017/ 11/ 15 by jd in Global News

“AI will transform asset management,” but “the biggest challenge we face may not be developing powerful predictive AI-based investment models.” Rather, it will be “simply convincing investors not to trust their own judgment. More broadly, the winners and losers will be decided not by the current market position of a firm or even the size of its checkbook, but by its ability to overcome its anthropocentric prejudice and trust AI like it would trust a human being.”


Institutional Investor (October 5)

2017/ 10/ 08 by jd in Global News

In a recent survey “of 101 investors managing more than $1 trillion combined, 87 percent said they would support the activist campaign of a well-regarded investor if they believed change was necessary at the company in question…. Many of the investors view themselves as change makers, with roughly half saying their firms can meaningfully influence a company’s corporate governance.”


The Economist (September 17)

2017/ 09/ 18 by jd in Global News

“Investors outside China have about $1trn invested in firms that use” variable interest entities (VIEs). These include Alibaba and Tencent. Yet, it remains “unclear if VIEs are even legal in China,” exposing investors to two risks. “First, the VIEs could be ruled illegal, potentially forcing the firms to wind up or sell vital licences and intellectual property in China. The second danger is that VIE owners seek to grab the profits or assets held within. If they refuse to co-operate, die, or fall out of political favour, it is far from clear that firms can enforce VIE contracts in Chinese courts.”


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