Welcome to September! Start the month strong with our morning lesson:
• The Size Factor: Small caps are trading at the biggest discount to large caps in decades. According to data from Ken French, over the past 50 years, small-cap stocks have returned an average of about 2% more per year than large-cap stocks. Incorporating the small-cap factor to help better explain stock movements was one of Nobel Prize winner Eugene Fama’s biggest early breakthroughs. (Vardad)
• America’s affordable housing problem: How America can be so unaffordable, and what we can do to make it more affordable; An Analysis of Good-in-Theory vs. Results-Based Policies (Our Built Environment) see more Buyers are on the sidelines: One reason for all the chaos in the housing market is the volatility of mortgage rates. The average 30-year fixed mortgage rate was 5.95% today, up from a 52-week low of 2.91%. (irrelevant investor)
• Why should we talk about QT?: Fears that quantitative tightening is either overstated or under-appreciated. SocGen is now leaning towards the latter. (Financial Times)
• Decade of batteries: Predicting the technologies that will define the next era of innovation (nohopinion)
• The pace of climate change sends economists back to the drawing board They underestimated the effects of global warming and their preferred policy solutions failed in the United States. (New York Times) see more Study: Greenland ice sheet will raise sea level by nearly a foot: New research suggests the giant ice sheet could already lose more than 3 percent of its mass, even if the world stopped emitting greenhouse gases today. (Washington Post)
• Guardian of the brain: The nervous and immune systems are tightly linked. Understanding their chatter can help solve many brain disorders and diseases (Scientific American)
• Scientists move closer to unlocking the mystery of immortal jellyfish, and possibly human aging: The authors of a new study hope that mapping the genome of Turitopsis dohrnii, known for its ability to regenerate itself, may lead to discoveries relevant to improving human health. (Wall Street Journal)
• 6 Ways to Level Up Your Daily Walk: Experts say Americans are walking more than before the pandemic. Here are some ways to turn your neighborhood into an exciting workout. (New York Times)
• Trump’s documents contain the US’s most closely held secret identity: For the first time, photos of papers at the center of FBI investigations show classified paper covers refer to sources, intelligence methods. (Bloomberg) see more Inside Trump’s War on the National Archives: The agency has faced a wave of threats and outrage since the FBI recovered scores of classified records from Trump’s Mar-a-Lago club. (Washington Post)
• Good luck finding a seat in that fancy airport lounge: In the post-Covid travel rebound, business-class travelers are finding their lounges packed — mostly because of credit card benefits. (Business Week)
Be sure to check out our Masters in Business interview this weekend with Lynn Martin, president of the NYSE, part of the Intercontinental Exchange. The NYSE is the world’s largest stock exchange, with 2,400 listed companies and a combined market cap of ~$36 trillion. He started his career in Global Services at IBM.
How CoreLogic rates America’s largest regional housing market
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