03/11/2021
Today Market Minder, Fisher Investments Despite the titular tie to arguably the greatest living investor, this valuation measure lacks predictive power. |
Derek Bergen, Applied Finance Group Several weeks ago, Applied Finance hosted a webcast where we reviewed aggregate market valuation characteristics across the US equity landscape. In this, we noted a structural intrinsic value preference towards growth stocks since 2002. While a mild value preference formed in April 2020, it has since normalized as value stocks have outperformed over the last two quarters. This observation is at odds with a recent publication from a traditional value manager (The Long Run Is Lying to You, AQR), which claims a historic book-to-price spread in favor of value stocks. |
Alex Tapscott, American Consequences If you look past the crypto hype, you'll notice one vital truth -- bitcoin is more than a meme investment: it's the future of money itself. |
John Tamny, RCM "Because a strong dollar lowers the price of imports and raises the price of exports, it gives foreign companies an advantage over American competitors and can drag down U.S. employment." Those are the words of Noam Scheiber, a business writer for the New York Times. The 19th century political economist Frederic Bastiat would have had some fun with Scheiber's confidently stated, but untrue assertion. The idea that nirvana would follow Treasury devaluing the dollar is a tad simplistic, and blind to the unseen that Bastiat always urged economic thinkers to keep top of mind. Maybe Scheiber just... |
Kimberly Lankford, U.S. News & World Report A question all-too-many are asking right now after a year of working at home. |
Chye-Ching Huang, NYT The I.R.S. is often unable to detect or fight blatant tax cheating by the rich and big businesses. Restoring the missing revenue is a solution that pays for itself. |
Brad Polumbo, Washington Examiner With the rise of gig economy jobs such as driving for Uber and other forms of independent work enabled by the digital era, more than 57 million Americans now work as freelancers in some capacity. But President Biden just endorsed a radical labor law that endangers their livelihood. |
Kerry Jackson, RealClearMarkets Assembly Bill 5, an unmistakable gift to labor unions from the California State Legislature, which saw the surge of independent contract workers as a source of easy money if they could be organized, set off more outrage than any California law in memory. Thousands lost their jobs because AB5 essentially outlawed gig work. While the losses are largely confined to California, the war on jobs isn't. Lawmakers elsewhere are also coming for freelance workers. Legislatures in at least four states - New York, New Jersey, Illinois, and Washington - have introduced laws similar to AB5. Massachusetts... |
Dylan Matthews, Vox The first war on poverty cut poverty in half. Joe Biden could do it again with the American Rescue Plan. |
James Pethokoukis, The Week Official site of The Week Magazine, offering commentary and analysis of the day's breaking news and current events as well as arts, entertainment, people and gossip, and political cartoons. |
E.J. McMahon, New York Post Gov. Andrew Cuomo's political meltdown couldn't have happened at a more critical time in New York state's budget process. |
Jonathan Decker, RealClearMarkets A lawsuit currently being pursued by Ohio Attorney General David Yost against OptumRx, a pharmacy benefit manager (PBM), alleges that the company bilked Ohio state coffers of more than $1.3 million on generic medications. If true, taxpayers and patients should be outraged. But this is far from the only reason to distrust PBMs. PBMs are the corporate middlemen that drive the costs of drugs up for patients in pursuit of their own profits. Seniors, in particular, who rely on these medications in greater numbers, pay a heavy price. |
Collin Martin, Charles Schwab With interest rates rising, "zombie companies" may have to refinance debt at higher rates. |
Richard Moody, Regions Bank |
Brian Wesbury & Robert Stein, First Trust Advisors |
Hayden Adams, Charles Schwab Was your tax refund smaller than in previous years? Did you owe more than usual? Here's why. |
Rob Arnott, Lillian Wu, Brad Cornell @RA_Insights The siren song of a "big market"â?"opened through innovation or disruption, such as the newly beloved electric vehicles marketâ?"lures investors to enthusiastically push up prices of all firms in the industry as if each will be a major winner. The reality is that as competitors in an evolving industry, some will fail. Pricing each company's stock without regard to this fact is the "big market delusion." |
Richard Moody, Regions Bank |
Troy Bombardia, Fundamental |
Ben Carlson, A Wealth Of Common Sense One of the strange subplots of the past decade or so in the markets is bad behavior has been rewarded. That may finally be ending. |
John Rekenthaler, @MorningstarInc Is the currency worth owning? |
Barry Eichengreen, @prosyn Recently, the idea of a digital greenback elicited support from US Treasury Secretary Janet Yellen and Federal Reserve Chair Jay Powell. Ultimately, the advantages of a digital dollar will need to be weighed against the potentially high costs and significant risks to the financial system that come with it. |
Julia Horowitz & CNN Business, CNN Heading into 2021, most of Wall Street was in agreement: the US dollar, which spiked a year ago as Covid-19 sent markets into a tailspin, was poised to stay on the back foot for some time. |
Morgan Housel, Morgan Housel Investing is a broader field than it looks, and there is so much to learn about it outside of the narrow lens of finance. |
Gab Birenbaum, Vox Have you seen that high-speed rail map on Twitter? Gen Z is hoping President Biden has. |
Alec MacGillis, The New York Times Regional inequality has deepened across the country. |
Bayer & Saletta & Volkman, MF Do you know that old saying that hindsight is 20/20? If we all were able to find a time machine to go back to our mid-20s and start our investing journeys all over again, we know one thing for sure - we'd be very rich at this point in our lives! |
Don Boudreaux, American Institute for Economic Research From July 1997 until August 2001 I was president of the Foundation for Economic Education("FEE"). Founded in 1946 by Leonard Read (1898-1983), FEE joined with AIER (founded in 1933) in pioneering, during post-war America, the nourishment and spread of the ideas and ideals of classical liberalism. |
Julie Creswell, NYT Inspired by pandemic lessons that kept customers in cars, chains are adding more lanes and curbside pickup, improving apps and testing menu boards that use artificial intelligence. |
Fisher Investments Editorial Staff, Fisher Investments |
Fisher Investments Editorial Staff, Fisher Investments |
Fisher Investments Editorial Staff, Fisher Investments |
Jack Forehand, Validea Value has outperformed since the bottom last year but there is more going on here than meets the eye. |
Sukhayl Niyazov, City Journal It fails as a revenue generator and as a tool to deliver fairness. |
Christine Idzelis, Institutional Investor "Inflation is like Bigfoot," says a Natixis portfolio manager. |
Mungowitz, Kids Prefer Cheese Regulations have to take into account the likely response of citizens, based on expectations. You can't just twirl dials and pull levers when it comes to public policy. |
Ironman, Political Calculations One year and one coronavirus pandemic after the U.S. and China agreed to the 'Phase 1' trade deal in January 2020, the trailing twelve month average of the combined value of goods traded between the two countries has returned to its November 2019 level. |
Susan Dziubinski, @MorningstarInc These stocks all have narrow or wide economic moats and are undervalued by our metrics. |
Ben Carlson, A Wealth Of Common Sense This is an economic experiment on a massive scale the likes of which this country has never seen before. |
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