My two-for-Tuesday morning
the train WFH reads:
• The Fed aggressively hiked rates to 5%, triggering a global recession: The Fed would be very wrong to say a survey of economists sees a 75 basis-point hike, then three-quarters of a slowdown. (Bloomberg) see more Cash-rich consumers can expect higher interest rates for longer periods of time Buoyed by pandemic-fueled savings, consumers and businesses are proving less sensitive to tighter credit — complicating the Fed’s job. (Wall Street Journal)
• Revenge of dau: Change is the only constant variable in the market. The startup is mature. Incumbents become complacent. The market is saturated. And so turnover at the top is inevitable. It’s only a matter of time before the king loses his crown. (irrelevant investor)
• Food prices rise, and so do company profits: Some companies and restaurants continue to pass on prices to consumers even after covering their own inflation-related costs. (New York Times) see more After years of setting new records, new car prices are starting to cool: Inventory on dealer lots is growing again, but executives say pent-up demand should keep prices up for the foreseeable future. (Wall Street Journal)
• Market panic lessons from Xi Jinping: China has been a terrible place for Western investors to put their capital, largely unchanged for more than 30 years as measured by the MSCI China Index and down more than 50% since September 1994. (Financial Times)
• Think homeowners will keep? Austin suggests otherwise: The “lock-in effect” is thought to prevent a decline in US housing prices The capital of Texas shows that it is not so iron-clad. (Bloomberg) see more Some suburbs are actually trying to solve the housing shortage: New York suburbs have long lagged their peers in new housing construction. Some cities are looking at a different approach. (New York Focus)
• There’s a horror-film cliche going on in Washington. Do we stop it? GOP politicians have repeatedly threatened fiscal and financial chaos — a budget hemorrhage, if you will — by holding the debt ceiling hostage. House Minority Leader Kevin McCarthy (R-Calif.) said he would use the debt ceiling to force spending cuts and could limit funding for Ukraine. (Washington Post)
• Welcome to hell, Elon: You break it, you buy it. Twitter’s problems are not engineering problems. These are political issues. Twitter, the company, makes very little interesting technology; The tech stack is not a valuable resource. Wealth is the user base: hopelessly addicted politicians, journalists, celebrities and other people who should know better but keep posting anyway. (edge) see more Why I don’t think Elon Musk is going to open the Nazi floodgates on Twitter Breaking the platform he just bought might be too expensive, and he only likes to score political points when they’re cheap. (slate)
• What Money-for-Everything Has Done to American Culture: You can make a thing so perfect that it is ruined. (Atlantic)
• US ‘caught a frenzy’ ahead of midterms: Local election officials fear security (The Guardian) see more Why many conservatives don’t call the attack on Pelosi’s husband political violence: Acknowledging a possible political motivation for the crime required a decade-long account of insults to the House speaker. (grid) see more Only the GOP celebrates political violence: Both parties are victims of factional bloodshed. One glorifies it. (Atlantic)
• When sarcastic fringeheads open their mouths, watch out: Scientists have found that the fish’s unusually wide mouth display is reserved only for fighting with other members of its species. (New York Times)
Be sure to check out our Masters in Business interview this weekend Jeremy! Wharton professor Jeremy Siegel and Jeremy Schwartz, chief investment officer of $75 billion Wisdom Tree Asset Management. Siegel is the author of Stocks for the Long Run; Schwartz is his research partner/editor. The two discuss the Sixth Edition of SFTLR, the latest and most extensively expanded edition of the investment classic.
The longer the time horizon, the lower the volatility and the higher the average expected return
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