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
[VIEW FULL POST]Here is an article from The Economist that details the dangers of structured products, such as Credit Suisse’s XIV which collapsed spectacularly last week. Banks like to sell these products to institutional and high net worth clients because they generate fees for the banks and often times are not well understood by the clients –…
[VIEW FULL POST]The many problems with GE’s financial reporting has made it difficult for both managers and investors of GE alike to assess the health of the conglomerate. At Aureus, we feel it’s important provide clear and concise client reporting so that both ourselves and our clients are able to properly assess their current financial situation and have the necessary…
[VIEW FULL POST]Why can’t wages climb? Because huge companies buy out competitors and then cap salaries to insure that profitability rises, justifying the purchase price. True in everyone in every industry, including farm-equipment mechanics. Read the full article in The New York Times
[VIEW FULL POST]Kari offers her recent views on the market in an article she published for CNBC. She highlights the importance of cynicism in a rising market to protect clients from permanent loss of capital. Read the full article on CNBC.com
[VIEW FULL POST]While ESG funds are being raised at a rapid pace, they represent a very small percentage of stocks and therefore their influence on management teams is questionable. However, BlackRock is one of the largest investors in stocks through its passive iShares index platform, which heretofore had itself taken a largely passive stance with regards to…
[VIEW FULL POST]This article is important but misses something. Not only do CEO’s today need to provide leadership regarding appropriate behavior norms at their companies but they also need to lead by example. Read the full article in The New York Times
[VIEW FULL POST]A very good article with a breakdown of the biggest winners/losers of the GOP tax bill. Read the full article in The New York Times
[VIEW FULL POST]As the world communicates, transacts, and absorbs everything through devices, control of this interface has consolidated that access into the hands of very few firms. Read the article in The New York Times
[VIEW FULL POST]This article lays out how the makeup industry has proven resilient and capitalized on social media as a driving force for expanded revenues. Not just overall sales, but makeup store retailers benefit too. Read the full article in The New York Times
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