Boltwood Capital Management | Weekly Reads: 12/10/2018
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Weekly Reads: 12/10/2018

The Week’s Best Articles: Week of December 10th, 2018

Business: Madoff’s Victims Are Close To Getting $19B Back – click here
One of the worst Ponzi schemes in decades was Bernie Madoff’s scam that was uncovered several years ago.  Now years later it appears that some of the money that he stole from his victims is close to being recovered.  While not a complete victory at least some of these clients will be able to begin putting their lives back together.

Investing: Your Love of Index Funds Is Terrible For The Economy – click here
There is no question that index investing has taken the retail investing world by storm. Millions of Americans have used passive index vehicles to gain access to the market in a diversified and relatively safe way.  However, in this opinion piece, Marketwatch outlines how the reliance on indexing has caused some repercussions that weren’t anticipated.

Business: How Costco’s Rotisserie Chicken Is Revolutionizing Agriculture in Nebraska – click here
Anyone who has shopped at Costco loves the variety of goods (and the price points) that they offer.  Few shoppers think about the impact that providing that many options has on the communities that produce those goods.  This article examines that impact on the agricultural scene in Nebraska.

2019: Cyber Security & Trade War Biggest Risks in 2019 – click here
At the turn of the year, it is always a good opportunity to look ahead and project what the largest risks for the market are heading into the next year.  We do not disagree with this article that outlines cybersecurity and trade wars as the primary risks in 2019.  We would also elevate the risk of a policy misstep in regards to interest rates as a third primary risk case to follow.

Economy: Most CFOs See Recession By 2020  – click here
The largest fear for many investors (and business owners) is that a recession is near.  In this survey by marketwatch, it appears that many of the world’s foremost CFOs agree that a recession will occur within the next two years.

Policy: California Wants To Tax Text Messages, Here’s Why  – click here
California is notorious for its taxes and penchant to over-legislate its companies.  In a more nuanced turn, some of the state’s legislators are hoping to be able to tax your text messages in order to drum up even additional tax revenue.

Business: Why Amazon’s Invasion of Virginia and New York Will Be A Slow One  – click here
One of the major events in 2018 was the announcement of the two new headquarters for Amazon in Virginia and New York.  A lot has been made of whether or not these cities have given too much away to get Amazon to come.  However, as this WSJ article points, whatever happens, it will likely take longer than many expect for Amazon to fully integrate into the community.

Business: Apple Plans Billion-Dollar Expansion in Austin, Texas  – click here
There aren’t many companies that can expand their physical footprint and build a second headquarters like Amazon.  However, in Apple’s case they happen to be one of those companies.  Whether they took Amazon’s lead or did it for their own business reasons they are building a second major campus in Austin, Texas.