My morning reads:

Know Your Major Asset Classes (The Capital Spectator)
• On cash hoarding (FT Alphaville)
• Where to Join the “Great Rotation” Into Stocks (Barron’s)
• More College Grads Equals Faster Economic Growth (Bloomberg) see also In Shovels, a Remedy for Jobs and Growth (NYT)
• Clients trust advisers; advisory firms, not so much (InvestmentNews)
I’m sure this will work out fine: Big Banks Are Told to Review Their Own Foreclosures (DealBook)
• Apple’s Tim Cook: Retail Philosophy, Acquisitions, and the Apple Ecosystem (MacRumors) see also Is Apple Really Developing Wristwatch Computer? (Bloomberg)
• How the Horsemeat Sneaked Into the Lasagna (Businessweek)
• Rock Stars: Then and Now (NBC Bay Area)
Yesterday was Darwin Day 2013 (Slate)

What are you reading?


Chart of the Day

Source: Chart of the Day

Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

20 Responses to “10 Mid-Week AM Reads”

  1. Mike in Nola says:

    Who started the rumor about the watch? Been getting more and more hype since New Years. I suppose it will be better to see Fanbois hypnotized by their wrists instead of slabs of aluminum/glass.

    But will it keep them from walking out into traffic? :)

  2. VennData says:

    Rubio was GREAT last night.

    If we can cut a billion dollars out of the deficit for every year since God created the Earth, that would be $10T!!!

  3. VennData says:

    Why does EVERYONE talk about this like this:

    “…The modest gain, which was in line with economist’s expectations, suggested that households were responding to the expiration of a two percent payroll tax cut on January 1. Taxes also went up for wealthy Americans…”

    The expiration?! You mean the END OF THE STIMULUS YOU ALL HATED!?

    “…It adds to expectations that growth is likely to be lackluster in the opening quarter of the year, due mainly to the expiration of that payroll tax cut,” said Joe Manimbo, a senior market analyst at Western Union Business Solutions…”

    Expiration?! You mean we let tax cuts expire in Washington only when it’s for regular folks?

    Instead of like this “Retail Sales Decline at End of Stimulus Tax Cut?” Why doesn’t anyone in the business press call this the end of the Obama stimulus and stop trying call it a tax hike on working Americans with tax hikes to the rich?

    This is complete spin.

    Obama cut workers taxes, for years, that was the stimulus, Deal with it.

  4. hue says:

    what the frack? colorado governor says he drank fracking fluid the governor and natural gas industry should have a toast with fracking fluid after it’s been in the ground

  5. BoulderPatentGuy says:

    hue – Hick drank a specific type of a Haliburton product called CleanStim, which is marketed as having ingredients from the food industry. However, there’s little evidence the product is actually being used in Colorado as a fracking fluid, let alone required to be used.

  6. thomas hudson says:

    the state of the union is getting dumber (on a reading level)…

  7. krice2001 says:

    “Where to Join the “Great Rotation” Into Stocks (Barron’s)” — You can almost feel the rumbling of what they are calling the “great rotation” into equities.”

    Makes one wonder whether this is bullish or bearish. Hmm…. I realize it’s not a ‘cover story’ but is this the sign of the beginning of something or the end of something (at least in the short to intermediate term)? I surely don’t know, just a question of how to interpret, I guess…

  8. willid3 says:

    i see…we have the new acronym. BSE…blame some else. after all it couldnt have been the banksters, or wall street that cause the economic crash. it had to be that dastardly government being run by Obama and Frank from Congress. and that CRA and F&F too.

  9. mad97123 says:

    Wall Street hates stocks…

    UBS in a note Wednesday says its “concerned about the short-term performance outlook for global equities,” noting that some of its own sentiment indicators, such as Bull-Bear and Relative Strength Indicators, are looking stretched.

    BofAML’s new Bull & Bear Index investor sentiment toward risk assets is at a more bullish level today than 99% of all readings since 2002. The current reading of 9.6 (out of 10) is close to max bullish and thus triggers a contrarian “sell” signal for risk assets. In their view, the relative risk-reward of owning equities is unfavorable at this juncture. Since 2002 a “sell” signal of 8.0+ was on average followed by a 12% peak-to-trough correction in global equities within three months.

    Last week, Investors Intelligence reported that the percentage of bullish investment advisors increased to 54.3%, with bears contracting to 22.3%… and the NAAIM survey reported that the average overall equity exposure reported by active investment managers reached 104.25% at the end of January – a leveraged position, and the highest figure in the history of the survey. Indeed, among individual survey participants, the lowest allocation was 60% – the most bullish exposure ever for the most bearish participant in the survey. The previous record in the survey’s history was 96% in early 2007.

  10. Joe Friday says:

    From Marco Rubio’s SOTU response:

    In fact, a major cause of our recent downturn was a housing crisis created by reckless government policies.


  11. AHodge says:

    Jeremy Steins key speech last week and goldman Jan Hatzius on it today
    Overheating in Credit Markets: Origins, Measurement, and Policy Responses

    Stein also commented on the implications of credit market overheating for monetary policy. He expressed reservations about what he called the “decoupling approach”, in which monetary policy focuses on the Fed’s dual employment and inflation mandate while regulatory policy is left to deal with any financial excesses. The problem, as he sees it, is that regulators are typically only able to detect and combat some financial excesses while overlooking others, which may be skillfully concealed by market participants. In contrast, tighter monetary policy “…gets in all of the cracks.”
    Stein’s speech raises two questions. The first is whether Fed officials are more concerned about the costs of an easy monetary policy and continued asset purchases than we had thought earlier. At the margin, the answer is probably yes. Stein is not only a permanent voter on the FOMC but also a highly respected academic economist whose core area of expertise is the link between the financial system and the macroeconomy. If he expresses concerns about credit market overheating, others in the Federal Reserve System will undoubtedly listen closely. That said, we view his speech as more of a conversation starter than a strong call to action, at least in the near term

    Trust GS wont mind me exerpting a para
    this is must read. the fed may be, rightly, at least thinking about direct monitoring/ control of credit, especially expansions and booms, as both volcker and Dalio have suggested. i agree
    hazius flags issue
    spends too much time arguing no credit excess now except in specialized areas like LBOs. its the big picture that is key here

  12. Francisco Bandres de Abarca says:

    Regarding the FT Alphaville “On cash hoarding” article (as well as yesterday’s Bartlett/Economix article), I find it rather surprising that neither article addresses the simple fact (and a bit of an oversimplification of the true corporate cash management methods on my behalf) that corporations with international operations hold vast sums of their cash and cash equivalents in overseas markets where the yield on cash is much greater than it would be were it held in Western Europe or the United States of America.

    So, appeals made by some D.C. politicians encouraging the repatriation of overseas cash hoards at a greatly reduced rate of taxation may well fall on rather selectively deaf corporate ears which know full well that aforementioned repatriated dollars may well be extracted from balance sheets by later taxation once those dollars are stateside in order to pay for a health care system which has been, and will continue to be, utterly ‘gamed’ in D.C., rather than being able to use those dollars for capital expenditures, hiring of talent, etc.

  13. hue says:

    Boulder, I understood the Halliburton food thing. But for Hick to testify about drinking it like that makes fracking safe, or let states regulate the natural gas industry, “don’t break out the goldfish and cheetos too quickly”

  14. willid3 says:

    beside we tried that repatriation deal the last time. and it was an epic fail!

  15. willid3 says:

    seems a battery maker got a big loan from the Feds. but never produced jobs. wonder why we dont hear of this from the GOP, oh wait, its on one of their states (Michigan) and the company didnt produce jobs.

  16. socaljoe says:

    That chart of the day (inflation adjusted DOW) does not look like we’re close to the end of the current secular bear market.