Tag: stocks
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Markets Potpourri
A smattering of thoughts: layoffs, AI bubble, Trump policy, crypto, Fed repo actions, fraud. Structural changes to US economy -> labor for infrastructure Verizon is the latest in a swath of tech companies laying off corporate staff, announcing it’s cutting up to 20% of it’s workforce. In recent weeks, Target Corp. announced plans to eliminate 1,800 roles,…
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Get Paid to Take Risk
Is the risk-reward trade-off broken? Historically smaller companies have higher stock price returns, but this relationship has faded since 2008. What happened and why aren’t investors being compensated for taking more risk? Table 1.1 shows how small-cap stocks have performed relative to large-cap stocks since the Great Financial Crisis in 2007-08. There is more volatility…
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Government vs. Free Market: Crashes of the Past 100 Years
Were the most significant drops in financial markets a function of unstable free markets or government intervention? Nassim Taleb, author of bestseller The Black Swan, often speaks on the danger of putting abnormal events in tidy boxes. Readers should be aware that there are many factors influencing markets at any given time, and by assigning…
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Bogus Tweet Risk
Most financial media is focused on “tweet risk” or “trade wars”. To me, these seem like water under the bridge. It’s in China’s interest politically to retaliate to trade sanctions, but not in their interest to crash US markets. They hold a massive amount of US Treasurys, if they stop buying US bonds, rates…
fungible thoughts 
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