27 Jan Weekly Reads: 01/27/2017
The Week’s Best Articles: Week of January 23, 2017
Environment: The Implications of Climate Change on Financial Markets – click here
An interesting look at the financial impact of the Paris Agreement and the potential investment risks associated with a shift toward more renewable forms of energy. The article does not break ground on any new information but does a good job highlighting the issues/trade-offs investors must be aware of as we move forward.
NAFTA: Potential Impacts Of Pulling Out of the Agreement – click here
Forbes does a good job of outlining some of the major costs associated with pulling out of NAFTA and some of the other trade agreements. We remain that pulling out completely is unlikely but that a renegotiation of some of the major issues is likely to come to pass.
Environment: Sea Levels and History – click here
An interesting look at the a recent study done to try and identify how much the world’s current temperature differs from past ice-ages. According to this piece that at this temperature the world’s oceans would rise another 20-30 feet.
Politics: For The Clintons What is Next? – click here
With President Trump’s inauguration behind us many are looking to see when the Clinton political machine reemerges. Politico does a nice job outlining some of the concerns Bill and Hilary have and what their next move is likely (or unlikely) to be.
Travel: AirBNB Expanding into Events – click here
Airbnb is looking to buy Tilt which has experience in helping groups of people pay for events. This seems like a natural extension of Airbnb’s new strategy to expand out beyond just lodging and touch the traveler throughout the entire trip. It will be interesting to see if major competitors like Expedia begin to consider offering services such as this.
Amazon: How Alexa Fits Into Jeff Bezos’ Fly Wheel – click here
Jeff Bezos, the founder and current CEO of Amazon, has an obsession with the flywheel. The idea that if you can be more connected to a customer and encourage them to repeat their business you are likely to become even more connected. The Alexa home assistant is a great example of him pushing this boundary even further. It doesn’t seem like an “if” but rather when will these services dominate most of the day to day errands we run around the house.
Fiduciary Rule: Will Trump’s Administration Remove the Fiduciary Rule? – click here
We take our role as fiduciaries very seriously and believe that all parts of the investment advisory business should be held to a higher standard than simple “suitability.” However, with the change in administration there is a real chance that the steps taken by Obama to reduce the industries reliance on commissions may be undone. Something we do not support.
Trade & Jobs: NAFTA, China and the TPP’s Impact on American Jobs – click here
A long but very informative piece on the impact (or lack thereof) of these trade agreements on manufacturing job losses over the past several decades. What the essay does a nice job outlining is that for many the “loss” of a manufacturing job results in a superior quality of life long-term. However, that doesn’t mean that we should pursue trade in a vacuum but rather focus on educating and supporting people to transition into other professions.
Trade: Amazon Now Shipping Via Ships Directly – click here
Amazon continues to build out their shipping network in an effort to diversify away from UPS and FedEx. While they are not likely in the short-term to push these long-term partners out it is clear that Amazon is concerned about making sure the user experience stays in their control. Delays and missed deadlines hurt their brand and customers willing to buy from them.