Below are some of the most interesting things I came across this week.
LINK
From Barron’s: “The profit-versus-labor gap is quickly becoming the most legible grievance in politics… A portfolio positioned as if record margins are permanent and untaxed ignores both mean reversion and legislative risk.”
LINK
Whitney Baker writes, “We’re in the early innings of one of the nastiest contractions in liquidity in recent times – the sort that topples financial pyramids and the assets and economies tethered to them.”
LINK
Robin Wigglesworth explains how the treasury market has become heavily reliant upon highly-leveraged hedge funds in recent years. As Andrew Bailey recently asked, “The question we have to face is, is that a robust structure from the point of view of financial stability?”
LINK
Reuters quotes economist Phil Suttle: “The US is now in a phase where its global seignorage benefits of supplying the world’s reserve currency have now been exhausted; the next phase (which may already be underway) is what happens when the foreign official holders of your liabilities become more antsy about holding them.”
LINK
Finally, Goehring & Rozencwajg note that, “Oil has been in an eighteen-year bear market since the $145 high of 2008. In grueling bear markets, a narrative takes hold that reinforces the price action — the lower prices go, the truer the story feels.”
Comments
Log in or sign up to join the conversation.