Boltwood Capital Management | Weekly Reads: 10/01/2018
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Weekly Reads: 10/01/2018

The Week’s Best Articles: Week of October 1st, 2018

Trade: Trump Ripped Up NAFTA, What Does the New One Look Like? – click here
The focus on trade over the last few weeks has been one of the drivers of the market.  Now that a “new” NAFTA deal is in place it is fair to wonder what it looks like and what it might mean for the future.  The NYT examines these issues in this article.

Technology: If FinTech Is So Innovative, Why Are Lending Costs Up? – click here
FinTech startups have changed the way that many access the financial markets and borrow money.  However, despite their disrupter status the benefits of this new technology have not fully been felt by consumers.  Why is that so?

Interest Rates: Fed Looking to Pare Language Regarding Direction of Rates – click here
Last week the Fed followed through on what many believed they would do, raising short-term rates to a range of 2-2.25%.  While not surprising in its own right the more interesting piece of information was their desire to tweak the language in their release about the future direction of rates.  Specifically, they removed the word accommodative from the press release.

Tesla: Unraveling a Tesla Mystery, Lots and Lots of Parked Cars – click here
Tesla’s production problems have been well documented yet no one can quite figure out why they are having such a problem.  These issues have been blamed on the slow delivery of cars.  However, based on this article by the NY Times there appears to be plenty of cars available but not of the right type and/or can’t be delivered.

Investing: How Persistent are the Shocks of Sentiment on Stocks – click here
Historically, when the sentiment around stocks changes so does the price performance of the shares.  The Federal Reserve Bank of San Francisco attempted to analyze these impacts in the following paper.

Technology: The Big Hack, How China Used a Tiny Chip To Infiltrate the US – click here
Technology espionage has been a part of our daily lives for the past decade plus.  In this essay, by Bloomberg the author examines how China’s dominance in computer chip manufacturing allowed them to execute a sophisticated hardware attack across the United States.