My afternoon market sell off train reading:

• Soros’s biggest holding? A bearish call on the S&P 500 (MarketWatch) but see No Worries: Chart Watchers Unconcerned With S&P 500 (Moneybeat)
Huh? Bacterial evolution offers clues to tradeoffs in financial investments (Kurzweilai)
• America Can’t Afford Wall Street’s Terrible Investment Advice (Time)
• Market Valuation and Asset Allocation Decisions (Rick Ferri)
• The gray art of not quite insider trading (Fortune)
• What caused the recession of 1937-38? (Vox)
• The Rise and Fall of the Superstar (Moneybox)
• The Meanings of Appleiness (Asymco) see also iPhone Fingerprint Reader Talk Boosting Biometric Stocks (Bloomberg)
• The More You Multitask, the Worse You Get at It (Priceonomics)
• Reviewing the Movies: Audiences vs. Critics (Economix)

What are you reading?

 

China Policy Causes Yields to Diverge
Graphic
Source: WSJ

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.

14 Responses to “10 Thursday PM Reads”

  1. chartist says:

    It ain’t just Soros who’s bearish on the SPX….I think we could free fall to 1400 based on SPX MACD levels on the monthly chart looking back a decade…..But I will be a buyer on the waterfall decline.

  2. willid3 says:

    why does the US have more income equality than any other country?
    http://qz.com/115841/why-inequality-is-worse-in-the-us-than-in-france/

    hm i wonder if this had some thing to do with why the DOJ didnt like the American- US Air merger?
    http://qz.com/115789/us-airways-executives-have-been-pretty-obvious-about-their-plans-to-raise-prices/

  3. willid3 says:

    think i finally understand why PC sales are falling. not only are they pricier than competitors for what most want to do ( tablets and smart phones can do email browse the web, which is mostly what people did with PCs). but trying to use an OS thats really built for touch screens on a PC that isnt touche screen enabled, will lead to extreme frustration. and returns.
    http://qz.com/search/dell

    and this will throw you a bit. the highest density startup scene isnt silicon valley. its in Colorado.
    http://qz.com/115429/americas-most-densely-packed-startup-scenes-arent-just-in-northern-california/

    and oddly enough the top 5 aren’t in the south, home of low taxes. sort of. and that big time business friendly environment

  4. RW says:

    The ‘taper’ faces serious headwinds but it seems to be baked into the cake: Don’t think markets are going to like the taste but the pitiless obduracy of policy elites continues unabated.

    Fall Tapering in the Air

    Regardless of the date of the tapering, however, the initial claims report reiterated that the writing is on the wall. Tapering is happening, and as long as that idea is still sinking in, I suspect the Federal Reserve is going to have a hard time keeping a lid on interest rates despite their best efforts to push back the timing of the first rate increase.

    Median CPI Up 0.2% in July

    … the median Consumer Price Index rose 0.2% (2.0% annualized rate) in July. The 16% trimmed-mean Consumer Price Index increased 0.1% (1.7% annualized rate) during the month. The median CPI and 16% trimmed-mean CPI are measures of core inflation calculated by the Federal Reserve Bank of Cleveland based on data released in the Bureau of Labor Statistics’ (BLS) monthly CPI report.

    Earlier today, the BLS reported that the seasonally adjusted CPI for all urban consumers rose 0.2% (1.9% annualized rate) in July. The CPI less food and energy increased 0.2% (1.9% annualized rate) on a seasonally adjusted basis.

    Over the last 12 months, the median CPI rose 2.1%, the trimmed-mean CPI rose 1.8%, the CPI rose 2.0%, and the CPI less food and energy rose 1.7%

    Doctors Report Assault Victim Feeling Better, Attribute Improvement to Vicious Beating

    Readers of the Financial Times will undoubtedly be looking for this headline in future editions after seeing that:

    “Berlin and Brussels credit fiscal discipline and reform for euro zone recovery.”

    • RW says:

      One reason, assertions of ‘greater transparency’ to the contrary, I believe the Fed has badly muddied the communication channel: their public rationale, on its face, is incoherent and contradictory.

      Is Fed Policy Inconsistent

      When the Fed started QE they viewed it as a stimulative, easing of monetary policy.

      Now they are arguing that tapering or reducing QE is not tightening.

  5. Francisco Bandres de Abarca says:

    I’m just doing a little research on past CBO debt/%GDP projections, versus what has actually transpired.

    Here is a chart from a July 2010 CBO publication, showing the baseline projection, and the Alternative Fiscal (i.e., worst case) Scenario: http://en.wikipedia.org/wiki/File:Publicly_Held_Federal_Debt_1790-2009.png

    And then there is the chart showing where we (U.S.A.) are today: http://research.stlouisfed.org/fred2/series/GFDEGDQ188S

    As you can see, we are on a path worse than the CBO’s worst case scenario. The worst case estimation from the 2010 publication predicted surpassing 100% some time after 2020. Whoops!

    It is probably a little too late to hope that the Federal Reserve will stop playing the enabler to a Congress hellbent on national insolvency. Insolvency is practically ‘a lock’. Still, it will be interesting to see the CBO’s next long-term forecast due out next month.

    • perpetual_neophyte says:

      By “national insolvency,” do you mean “when an individual or organization can no longer meet its financial obligations with its lender or lenders as debts become due” or some other definition which involves an inability to service outstanding debt?

      If so, that’s like asserting that the scorekeeper at the football game is going to run out of points.

      Insolvency really shouldn’t be the primary concenr.

  6. rd says:

    An interesting column here on the future of books:

    http://sethgodin.typepad.com/seths_blog/2013/08/an-end-of-books.html

    I think we are coming up to a period that will be an interesting test of e-books. If B&N runs into serious trouble and the Nookbook format dies, then that will be a shot across the bow that anybody’s books could vanish in the blink of an eye in the electronic era.

    We have little record of the accumulated knowledge of the first few thousand years of civilization because not much was written down and less of that was in a format that would last more than few years or in enough volume to be distributed among lots of potential repositories. Gutenberg’s printing press changed that. Are we going to go back to an era of ephemeral information with low volume of hard copies of information? The oportunities for censorship would grow dramatically where governments could install software on devices that simply erased books by erasing any files with certain file extensions.

  7. moonmullins says:

    Re: the Time Magazine article … Good grief, what sloppy journalism. Too many errors to correct in this space but here’s one example: the notion that a shift away from defined-benefit plans is the cause of our retirement shortfall is misleading and specious … defined benefit plans are often fundamentally flawed in that many assume unattainable rates of return – in many cases leaving taxpayers to cover any shortfall. As a California taxpayer I have had a front-row seat to this financial mess, courtesy of several public unions (among others), particularly over the last 13 years. Defined benefit plans, as any knowledgeable investment advisor knows, are being dumped post haste, and with good justification.