Train in vain!

• Why chasing money, and the market, can be bad for you (MarketWatch) see also Stock Picking for the Long, Long, Long Haul (MoneyBeat)
• Here are five finance bloggers you should be reading (The Tell)
• These two self-delusions can cost people dearly (WSJ)
• Japan to keep printing money for years to come, so learn to enjoy it (Telegraph)
• Americans See Nation on Wrong Track as Own Goals Closer (Bloomberg)
• The House readies a new attack on scientific research (LA Times)
• The guy who beat Eric Cantor penned a scathing, seemingly unpublished book about the economics profession (Vox) see also The Man Who Beat Eric Cantor Thinks Economics Is a Sham (Slate)
• The Eccentric Genius Whose Time May Have Finally Come (Again) (The Atlantic)
• So much Arctic ice has melted that we need a new atlas (Quartz) see also President Tong and His Disappearing Islands (New Yorker)
• The Trials of ‘Entertainment Weekly: One Magazine’s 24 Years of Corporate Torture (The Awl)

What are you reading?


Not Much Room to Run for Strategists

Source: Bespoke Investment Group


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.

4 Responses to “10 Thursday PM Reads”

  1. Jojo says:

    Hey mom & dad I want to be a CEO when I grow up!
    CEO Pay Continues to Rise as Typical Workers Are Paid Less
    By Lawrence Mishel and Alyssa Davis | June 12, 2014
    Issue Brief #380

    The 1980s, 1990s, and 2000s were prosperous times for top U.S. executives, especially relative to other wage earners and even relative to other very high wage earners (those earning more than 99.9 percent of all wage earners). Executives constitute a larger group of workers than is commonly recognized, and the extraordinary pay increases received by chief executive officers of large firms had spillover effects in pulling up the pay of other executives and managers.1 Consequently, the growth of CEO and executive compensation overall was a major factor driving the doubling of the income shares of the top 1.0 percent and top 0.1 percent of U.S. households from 1979 to 2007 (Bivens and Mishel 2013). Income growth since 2007 has also been very unbalanced as profits have reached record highs and, correspondingly, the stock market has boomed while the wages of most workers (and their families’ incomes) have declined over the recovery (Mishel et al. 2012; Mishel 2013). It is useful to track CEO compensation to assess how well this group is doing in the recovery, especially since this is an early indication of how well other top earners and high-income households are faring through 2013. This paper presents CEO compensation trends through 2013 and finds:

    Trends in CEO compensation last year:

    * Average CEO compensation was $15.2 million in 2013, using a comprehensive measure of CEO pay that covers CEOs of the top 350 U.S. firms and includes the value of stock options exercised in a given year, up 2.8 percent since 2012 and 21.7 percent since 2010.

    Longer-term trends in CEO compensation:

    * From 1978 to 2013, CEO compensation, inflation-adjusted, increased 937 percent, a rise more than double stock market growth and substantially greater than the painfully slow 10.2 percent growth in a typical worker’s compensation over the same period.
    * The CEO-to-worker compensation ratio was 20-to-1 in 1965 and 29.9-to-1 in 1978, grew to 122.6-to-1 in 1995, peaked at 383.4-to-1 in 2000, and was 295.9-to-1 in 2013, far higher than it was in the 1960s, 1970s, 1980s, or 1990s.
    * If Facebook, which we exclude from our data due to its outlier high compensation numbers, were included in the sample, average CEO pay was $24.8 million in 2013, and the CEO-to-worker compensation ratio was 510.7-to-1.

  2. RW says:

    U.S. Real GDP Growth in the First Half of 2014 Looks to Be at an 0.8%/Year Annual Pace

    Is the Macro-Economy Really That Much of a Muddle?

    We know that the bursting of the housing bubble caused a huge negative demand shock. We know the deep recession that ensued meant millions of households took a huge hit to their wealth, their incomes, and their ability to earn. We know that gaps in GDP, jobs, and wages remain, even five years into an expansion.

    So where’s the big, freakin’ puzzle here? Investing in public infrastructure, helping the long-term unemployed with extended benefits or direct job creation, targeting the trade deficit to help our manufacturers, pressing on the fiscal and monetary accelerators …these are well-established and well-understood responses, or at least they used to be …

    Of course, the constraints are political and I’ll immediately grant you that the politicians are more confused than the economists. But granting the not-that-interesting truth that the future is uncertain, I simply don’t understand the apparent confusion about the present …

  3. thatguydrinksbeer says:

    Regarding Cantor. I believe articles are stating that his internal polling had him at a 35% lead. Was the polling staff lying or incompetent? I wish someone would dig into and bring attention to this, there is a good story here and it could benefit many…