02/12/2021
Today

Why Yes, I Do Believe That the Stock Market Is Rigged

Ken Fisher, RealClearMarkets

The hubbub surrounding GameStop's recent boom—and bust—has many bemoaning retail investors getting the shaft. Brokerages halted trading in hedge funds' favor, allegedly. Congressional hearings loom, with opportunistic politicians from both parties screeching about markets stacked against the "little guy." As i see it, they're rigged to benefit investors big and small. Today, it's easier than ever to take advantage. Let me explain. When starting my career, 49 years ago, investors faced high hurdles. Until May 1975, the New York Stock Exchange enforced strict—and steep—minimum...

How You Can Retire with $1M While Using Index Funds

Matthew Frankel, Motley Fool

Buying stocks and building a portfolio of top-quality companies can be a great way to build wealth over time, but it isn't the only way to go. Quite frankly, buying individual stocks isn't right for everyone. Many people simply don't want to have to do investment research or depend on any one company for their investment performance.

Why Tesla Needs A Slow Loss of Mkt. Share

Vivek Wadhwa & Alex Salkever, MarketWatch

As rivals start to sell electric vehicles in earnest, the market will grow and highlight Tesla's innovation prowess, protecting the planet in the process.

Biden's Good 'Middle Class' Intentions Are Quite Haughty

Bernard Goldberg, The Hill

Biden should think twice before giving in to progressives who won't suffer for what they call 'the greater good.'

What to Tell the Conservative Critics of $15 Min. Wage

Gus Wezerek, New York Times

Look at the data.

What Unites Biden and Trump Could Suffocate Innovation

Charles Sauer, Examiner

While the political and policy divide between the Biden administration and the Trump administration is vast, there are also some policies that unite them. These areas of agreement could spell disaster for innovation.

To Work, the PPP Loans Must Be Fully Non-Taxable

Alfredo Ortiz & John Motta, RCM

Tax headaches have started early for American small businesses this tax season. States can help these employers and accelerate the economic recovery by clarifying that business expenses paid from Paycheck Protection Plan loans are fully tax-deductible, in-line with federal tax law. The PPP is one of the most successful government programs in American history. It distributed $525 billion worth of forgivable loans to more than 5 million small businesses nationwide, supporting over 50 million jobs. Without the PPP, unemployment would have been far higher and the economic contraction much more...

Crisis In U.S. Cities. They Should Be Allowed to Raise Debt

Zachary Karabell, Time

If the federal government won't use its economic powers to help ailing metropolises, then cities should be able to solve their own problems

A World Sans Billionaires Would Be Brutal

David Hebert & Abigail Hall, RealClearMarkets

Billionaires should not exist. At least that is what Democratic leaders like Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez think. Both have argued that a society that allows billionaires to exist is fundamentally "immoral." They aren't the only ones who feel this way. Now a year into the COVID-19 pandemic, many remain jobless. People worry about keeping a roof over their heads and food on their tables. Some are quick to vilify billionaires like Amazon's Jeff Bezos, Facebook's Mark Zuckerberg, or Microsoft's Bill Gates for earning seemingly obscene profits while millions around the...

Masking: A Review of Evidence

Paul Alexander, American Institute for Economic Research

The question on whether to wear a face mask or not during the Covid-19 pandemic remains emotional and contentious. Why? This question about the utility of face coverings (which has taken on a talisman-like life) is now overwrought with steep politicization regardless of political affiliation (e.g. republican or liberal/democrat).

How We Can Solve America's Housing Crisis

Julian Castro & Dorian Warren, USA Today

In January, President Joe Biden declared equity in housing as a top priority for his administration, and for good reason. Ten million people started off the new year behind on their rent payments — more than the number of people who lost their homes during the 2008 housing crisis. In addition to extending and expanding the Centers for Disease Control's eviction moratorium and providing relief to close the $70 billion backlog in missed rent payments, we need to tackle the underlying housing crisis that left more than 1 million Americans without a permanent home even before the pandemic.

There's Much More Going On Than You've Been Led to Believe

Jeffrey Snider, RCM

Computing power being what it was in the eighties, still the financial system was at the leading edge of technological prowess. Big money involved, huge money, had meant the ever-expanding global monetary processing footprint had itself become big business. Not just large volumes of real economy payments to process and clear, also increasingly large volumes of securities transactions. During the decade before, the seventies, both kinds had progressively moved beyond national borders, too. One day in 1985, a computer system at the Bank of New York (BONY) found that it couldn't handle a large...

Surprise! Factor Betas Don't Deliver Factor Alphas

Various, Research Affiliates

By buying or overweighting characteristics-based factor exposure and selling or underweighting beta-based factor exposure, investors can position their portfolios to reap the rewards of factor investing while bearing less risk.

The Earnings Recession Has Ended

David Kastner, Charles Schwab

The financial sector has struggled as of late, but we think this is a potential opportunity for investors.

Should I Take the Lump Sum Option from My Pension?

Carrie Schwab-Pomerantz, CS

Take a lump sum or lifetime income from my pension? The best choice for you depends on your individual circumstances.

January Was a Month of Transition

Brad McMillan, Commonwealth Financial Network

Why Immunity Is Closer Than You Think

Brian Wesbury, First Trust Advisors

A Tax-Smart Approach to Your Cost Basis

Hayden Adams, Charles Schwab

Understand tax rules to keep more of your gains.

Why Widespread Muni Defaults Are Unlikely

Cooper Howard, Charles Schwab

Many municipalities are under stress, but that's not necessarily a reason to avoid municipal bonds.

Ken Fisher on Nixing the VIX

Fisher Investments Editorial Staff, Fisher Investments

Will Uncle Sam Force Big Tech to Break Up?

Fisher Investments Editorial Staff, Fisher Investments

Shattering the Debt Ceiling Myth

Fisher Investments Editorial Staff, Fisher Investments

Elon Musk Is About To Get A Whole Lot Richer

Chris Isidore, CNN Business

For a CEO with no base salary, Elon Musk's 2020 payday reached sky-high record levels.

The Trouble With Mitt Romney's Family Security Act

Veronique de Rugy, Reason

The plan would redistribute wealth, create distortions, and grow government.

Why Didn't GameStop Sell Stock During The Mania?

Kyle Orland, ArsTechnica

The retailer could still possibly arrange a stock-for-cash infusion in the future

The Investment Strategy That Makes Your Life Easier

Ben Carlson, AWOCS

Dollar cost averaging is boring but it works.

Help Wanted? Why Aren't Jobs Openings Being Filled?

Ed Yardeni, Dr. Ed's Blog

In a recent Washington Post op-ed, Larry Summers trashed President Joe Biden's American Rescue Plan as too stimulative and too inflationary. He may have a point.

Is This 1929 or 1998? What To Expect From Here

Charlie Bilello, Compound Advisors

It isn't either. It's 2021 and it will be different.

Their Cups Runneth Over: States & Cities Don't Need More Aid

Noah Williams, CJ

State and local government revenues have recovered from the pandemic, and further federal aid is unnecessary.

Green Jobs In The Sky, By and By

Editorial Board, New York Post

Those bitter, now century-old lyrics from labor-movement poet Joe Hill seem to cover the Biden administration's promises of "green jobs" for all the people losing their actual jobs from the president's rabid anti-carbon agenda.

Apple Is The $2.3 Trillion Fortress Tim Cook Built

Austin Carr, BusinessWeek

Trade war? Pfft. Trump? Please. Antitrust? Zuck's prob. (Ditto privacy.) Revenue? Endless.

How to Temper a Momentum Strategy Using Value

Daniel Sotiroff, Morningstar

The approach can struggle when the market changes direction or market volatility spikes.

Amazon Is Creating an Empire of Trash

Shoshana Wodinsky, Gizmodo

Amazon has been making a mint this past year. That's resulted in multi-billion dollar pay days for Jeff Bezos, and millions of the company's iconic cardboard boxes being left on doorsteps, and in lobbies and mailboxes every day. And that's a huge issue.

Big Risk, Big Reward: A Gamer Takes On Google & Apple

Shannon Liao, CNN

Over the course of his career Tim Sweeney has been unafraid to take on tech industry giants.

Stop Stressing About Inflation

Barry Ritholtz, The Big Picture

Fiscal Stimulus Around The World

Greg Mankiw, Greg Mankiw

Governments are spending a lot.

The Best Story Wins

Morgan Housel, Collaborative Fund

A truth that applies to many fields, which can frustrate some as much as it energizes others, is that the person who tells the most compelling story wins. Not who has the best idea, or the right answer. Just whoever tells a story that catches people's attention and gets them to nod their heads.

How Sneakerheads Ruined Online Shopping

Casey Taylor, Vox

How shopping for everything from in-demand sneakers to Funko Pop! figures got so competitive.

The Stock Market Pendulum: What Time Is It?

Jon, Novel Investor

The key to the pendulum analogy is to be aware of the risks and behavior that come with stock market extremes and that those excesses revert.

Now THAT Was A Bubble

Ben Carlson, A Wealth Of Common Sense

Japan was the bubble that defines all bubbles.

"A Certain Degree Of Eco-Dictatorship"

Climateer, Climateer Investing

A very clear-eyed analysis by Deutsche Bank's automotive, climate policy, energy, transportation and German manufacturing analyst, Eric Heymann.
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