Boltwood Capital Management | Weekly Reads: 07/09/2018
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Weekly Reads: 07/09/2018

The Week’s Best Articles: Week of July 9th, 2018

Retail: Brick and Mortar Isn’t Dead – click here
A great deal has been made about the difficult situation that traditional brick-and-mortar retailers are facing.  This article from Forbes looks at the changing landscape and points out that just because traditional stores like Toys R’ Us has closed that all retail is going to go away.  It will just look different going forward.

Technology: Uber to Rent Scooters in Partnership with Lime – click here
If you have been to San Francisco or any other large city in the last year you likely have noticed the overabundance of scooters for rent.  With the news that Uber is going to invest in one of the largest companies, they are likely not going anywhere anytime soon.

Investing: Why $1 Trillion Mountain of Private-Equity Cash Matters – click here
The WSJ examines the implications of massive amounts of money being raised and hoarded by Private Equity companies.  These companies have raised large amounts of capital in order to invest in potential trade-war outcomes.   While some cash may be used for these purposes the cash pile also indicates that after years of record investment returns there is lots of capital looking for a home.

Technology: Apple’s Next iPhone Could Spell Big Trouble for Carriers – click here
One thing about technology is that is always true: whenever something seems “common” it is likely ready to change.  Case in point of the traditional SIM card for your cell phone.  A long-forgotten piece of the phone this critical device is potentially getting a facelift that would allow users to switch carriers at will.  This could pose bad news for the carriers who “finance” your phone for you.

Investing: What to Do With Excess Cash – click here
Investors as a whole carry more cash than they need.  This article by Barrons outlines that close to investors typically hold 22% of their liquid investable assets in cash.  In a world where cash is earning less than 1% this is not a good investment.  The author examines why investors do this and now they can change their habits.

Investing: Forecaster Ed Yardeni Says Do NOT Fear the Interest Rate Curve – click here
The famous investor and market forecaster states that investors should not fear the flattening yield curve.  While he provides multiple reasons why this is true he cites the negative interest rate policies in Europe and low inflation in the US as the primary reasons “this time is different.”

Wealth: The World’s Biggest Family Fortunes – click here
Americans have always been fascinated by the world’s wealthy.  While there are some single individuals that have amassed immense wealth this article by Bloomberg looks at the country’s wealthiest families.

Investing: Loss Aversion – click here
Behavioral economists have long pointed out that investors do not act rationally.  Specifically, they fear losses more than they value gains.  This article by John Cochrane explains loss aversion and why its impact should be recognized by investors.