17 Jan Weekly Reads: 01/14/2019
The Week’s Best Articles: Week of January 14th, 2019
Economy: Shutdown Pinches Economic Growth – click here
The largest government shutdown in U.S. history is ongoing. Now as we are entering our third week many investors and economists are starting to see areas where economic growth is being hampered. Ironically, it is difficult to know just how pinched the growth is because many of the government agencies that report data are not open!
Business: Scooter Startup Tries To Pinch Journalist And It Didn’t Go Well – click here
If you have been to San Francisco over the past year or so there is no question that the revolution of the electric scooter is alive and well. Recently, one of the companies Bird tried to silence a journalist to keep some bad news out of the press. However, as you might assume things didn’t turn out so well for them.
Interest Rates: Interest Rate Patience Needed For Months Not Weeks – click here
Fed governor Robert Kaplan reiterated recently that the Fed should be slow in raising interest rates over the coming months. He tried to point out that there is a long-term nature to the normalization of rates and that the Fed and investors should remain have patience in waiting for the next increase.
Corporate Debt: The Market’s New Worry, Corporate Leverage – click here
One of the major stories that is likely to dominate market headlines over the next several years is the impact of such large debt issuance by municipalities and corporations over the last 10 years. With low interest rates and easy monetary policy, many institutions have levered up their balance sheet. Only time will tell what the impact of this is.
Investing: Index Crazed Investors Have Turned The S&P Into One Large Company – click here
There is no question that index investing has had a major impact on the overall investing marketplace. This article by Bloomberg looks at how investors’ obsession with index investing has created one mega-company, the S&P 500.
Technology: Amazon Restaurants-Delivery Service Starts in Nashville – click here
If there one thing Amazon is, it is not being scared of trying new things. In Nashville this week they just started experimenting with restaurant food delivery. While this is unlikely to be a mega business for them it is just another way that they test ideas to see how they can apply the lessons learned to the overall company.