Boltwood Capital Management | Weekly Reads: 09/18/2017
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Weekly Reads: 09/18/2017

The Week’s Best Articles: Week of September 18th, 2017

Tech: Insurance Companies Turning to Tech – click here
Reuters examines how tech firms are beginning to help insurance companies handle claims (and even mitigate risk) by using newly developed technology.  This intersection of “traditional” business and new technologies is something that has long occurred.  However, the operational leverage for insurance companies is likely massive and, up to this point, hardly touched.

Investing: The World’s Most Overpriced Asset – click here
This article examines one investors view of the German Bund.  In his thesis he argues that anyone willing to pay a government for protection of their capital will regret the decision in the future.   The German Bund is the prime example of this flight to safety.

Green Investing: Will the End of Subsidies Hurt Investors – click here
Socially responsible investing has been rising to the forefront for sometime.  One of the areas that gets the most attention is the category of “green investments.”  These investments typically seek to support companies that are doing well by the environment and/or changing the negative impacts that humans have had on the world.  This article examines some of the risks facing these investors.

Cord Cutting: Is The Time Now? – click here
Many of the major TV networks have been battling Amazon, Netflix and Hulu as more and more Americans ditch the expensive cable package.  This “cutting the cord” process is just at the beginning and investors should be wise to take note.

Investing: The Lie of Averages – click here
Investors globally use averages to decide on what asset classes and individual investments look the best.  The theory goes that if something is below its average (say in valuation) the asset may be undervalued.  The problem with this thinking is that returns may follow this trend over time but rarely (almost never) do they exactly come back to the average.  This article digs into this issue.

Hurricanes: 1 Million Cars Damaged, Now What? – click here
One of the major asset types damaged by the recent hurricanes are cars.  For millions of Americans they will be looking for a replacement.  This article by Fortune looks at several of the issues facing the auto industry and auto owners over the next several months/years.

Tax Reform: Reduce Rates But Lose the Breaks? – click here
The top 1% (those defined as making $433,000 or more in income a year who pay over a third of all tax) are likely to see the top marginal rates come down in president Trump’s tax plan next week.  However, along with this benefit they are likely to lose many of the deductions that they have cherished for so long.  Let the debate begin (again).