19 May Weekly Reads: 05/15/2017
The Week’s Best Articles: Week of May 15th, 2017
Markets: NY Fed and the Evolution of OTC Derivatives Market – click here
One of the major results of the 2007 financial crisis that get s little attention is the ongoing overhaul of the over the counter derivatives market. The NY Fed has been tasked with overhauling how this little understood but very important marketplace operates.
Income Inequality: Working Class Blues – click here
Bloomberg provides a helpful explanation of the evolution of the “working class” terminology and how lack of education is the leading predictor rather than job title or role. This has evolved away from the Karl Marx definition of class and his various class layers.
WannaCry Virus: 5 Groups to Blame for the Ransomware Attacks – click here
Fortune quickly outlines what happened and who should shoulder some (if not all) the blame for the attacks. Like most things in today’s complex society there is plenty of guilt to go around and non of this would likely have occurred without a confluence of neglect.
Volatility: VIX at 10 – Historically Low Volatility Gauge – click here
Market participants have seemingly become comfortable with the status quo. The markets volatility gauge, the VIX, is sitting below 10 a number it hasn’t been below for over a decade. Is this a contrarian signal or a sign that the market will keep “melting” up.
Politics: Did Trump Share State Secrets with Russia? – click here
In what is seemingly becoming a daily occurrence there is more drama out of the White House and President Trump’s actions. If indeed he did what some are reporting there is likely to be a massive uproar and push back. If for no other reason than to not have to deal with the headlines most of America hopes that he can begin to understand perception is important and reign in his actions/comments.
Real Estate: Inside Apple’s New Campus – click here
Wired takes you inside Apple’s new state of the art campus. In many aspects the new headquarters looks more like an Apple product than it does a real estate project.
Autos: Tesla Production of Model 3 Provokes Skeptics – click here
Forbes examines the Tesla’s ambitious goals for its new “affordable” Model 3 production. While there are many skeptics of their ability to meet their targets there seems to be widespread belief that long-term the company will transform the auto industry. This unabashed faith in the long-term view of the company is like that of other notable companies that have long-lasting brands.
Investing: A Look at What Hedge Funds Did in the First Quarter – click here
Quarterly the biggest hedge fund managers must release to the public what they did during the quarter. Each quarter market observers wait to watch and see what information they can gleam from how these managers are positioning their portfolios.
Market: Investors Ignore Political Risk Until Its To Late? – click here
Ben Bernanke analyzes a common issue we see with investors – that political risk is often discounted until investors are forced to react quickly. This was never more apparent than during the Trump administration issues with Comey and Russian this week.