Category: Investing

Getting a handle on a scandal

The recent Facebook “crisis” over user data is just the latest chapter in the long history of corporate crises. In this article, The Economist analyzes the impact of such crises on long-term shareholder value. Read the full article in The Economist

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Which firms profit most from America’s health-care system

Healthcare has been a great sector in which to invest for many years now. But as The Economist lays out in this article, there are factors in place that may change the source of those high returns, especially for some participants in the industry. Read the full article in The Economist

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The Economist: Steven Pinker’s case for optimism

Steven Pinker’s latest book, “Enlightenment Now: The Case for Reason, Science, Humanism and Progress,” posits that the prevalence (and allure) of negative news undermines the amazing progress humanity is making. Nowhere is this more true than the public markets, where the most recent bout of volatility focused the minds of investors (and clients alike) more…

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WSJ: New Worry for CEOs: Rising Costs From Metals to Meat

We are finally seeing articles about how higher costs for labor, commodities, and raw materials are affecting companies.  It’s likely that earnings expectations were just too rosy and the market has adjusted to a more realistic outlook on profit margins. Read the full article in The Wall Street Journal

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NYT: One Cause of Market Turbulence: Computer-Driven Index Funds

When index funds comprise 40% of all trades, and they are only selling, with less traders active (not passive), there are fewer bids on the other side, forcing prices down even further.  This is an obvious, but very real, hazard of passive investing trends. Read the full story in The New York Times

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