Boltwood Capital Management | Weekly Reads: 09/17/2018
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Weekly Reads: 09/17/2018

The Week’s Best Articles: Week of September 17th, 2018

Economy: Collapsing Investment Doesn’t Mean Collapsing China – click here
Investors have placed a great deal of worry on the collapsing rate of investment in China due to the crackdown on shadow banking.  However, behind that headline is a more balanced economy that is being pushed forward by state-sponsored investments that should pave the way for growth in the years ahead.

Technology: Why Shopify Could Be the Biggest Winner with the Latest Update to Instagram Stories – click here
Facebook has invested in a variety of revenue-neutral projects over the past few years: Oculex, WhatsApp and Instagram to name a few.  Bulls of the stock have long argued that Instagram is one place where there is ample opportunity to monetize their investment.  Recently they updated Instagram stories to allow for marketing which should help online shopping companies attract new business.

Trade: China Cuts U.S. Treasury Holdings As Trade War Starts Heating Up – click here
A fear for many Americans is that China could retaliate against the U.S. for its aggressive trade practices by selling parts of their massive treasury holdings.  This week it appears that these fears are coming true (at least to a point).

Technology: Tesla Faces Justice Department Criminal Investigation over Founder’s Tweets – click here
Elon Musk has attracted alot of attention to Tesla over the past few months, much of it negative.  On Tuesday the justice department announced that it was looking into claims that Mr. Musk made via twitter bringing yet another question mark to a transformative but volatile company.

Interest Rates: 3% Yields Give Bond Traders a Dilemma – click here
The 10-year Treasury broke 3% for the first time in weeks climbing to a high of 3.03%.  On its own, this isn’t a major deal but the fact that the short-term yields are approaching 3% as well is making some investors nervous and forcing them to decide where to deploy capital.

Investing: No, The Financial Crisis Didn’t Spawn Populism – click here
If you read the mainstream press one of the major outcomes from the financial crisis was the rise of populism.  In their eyes the catastrophic financial events for many families during this period pushed normal people away from globalism and toward a more insular view.  The WSJ examines this notion.

Politics: Inside Facebook’s Election ‘War Room’ – click here
One of the main areas Facebook has faced criticism is their unwillingness to do more to stop the spread of fake news and maintain the integrity of elections worldwide.  This article by the NYT looks at the steps the Silicon Valley company is taking to prepare for the mid-term elections.

Travel: Airlines Push to Regulate Ticket-Changing Fees – click here
One common complaint of airplane travel is the cost of changing your flight information.  The WSJ examines the battle brewing with regulators over whether or not airline change fees should be regulated.

Real Estate: What Beyonce and These Billionaires Have in Common – Massive Mortgages – click here
In the world of the ultra-rich, it was commonplace for people to pay for luxury real estate outright.  However, with interest rates still historically low and a decade of steady, if not spectacular, home appreciation some of these wealthy people are now financing these purchases with banks that us common folk do not have access to.