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 so than ever, overshadowing the remarkable trebling of the stock market since its lows less than 10 years ago.
Kari offers her thoughts on the #metoo movement from the perspective of a small business owner. In light of the fact that many small businesses operate without an official HR department, issues may arise without proactively leadership.
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.
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.
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 – as was likely the case with the XIV.
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 information to plan accordingly for their future. We think it may behoove GE to do the same for their investors.
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.
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.
If the HuffPost is dropping their non-paid contributors, costs go way up, signaling the inevitable end of free access to websites like this. They must believe that readers will pay for content. If not, can they survive on advertising? After 30 years, we are about to find out who can generate profitability in digital media.
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 socially responsible investing. That may now be changing.
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