what i have been reading today (05 Feb 2017)
Tom Brammar on Trump and Partners LLP
“Think about; first he appeals to the existing shareholders (citizens) making the case that the business (country) is significantly undervalued because its been run so poorly by its current management. Having then “acquired” the country he starts immediately making strident changes unencumbered by any concern for the politics of the remaining management staff.”
More at Medium
Gold: Back into favour as the Trump rally takes a breather
Bloomberg reported a surge in prices and volumes in Gold call option prices – a 53% jump in prices for the most active call giving holders the right to buy March futures @ 1250/ounce.
More at Bloomberg
NAFTA’s legacy and the complications that come with it
Northern Trust takes a detailed look at NAFTA’s implications for the US and Mexican economies: While there is no doubt that an unraveling of the trade relationship between the two will wreck havoc on the Mexican economy (80% of exports to the US and high external debt wrt GDP), US may hurt from the American corporate taking a hit to their global competitiveness.
Factor behind low wages and employment growth: Labor utilization
Mark Rzepczynski tries to put all the labor statistics in one page using Atlanta Fed’s labor spider graph. “There are too many potential workers not in the labor force or workers not working to their potential. This may be one of the reasons for why real wages have not grown as fast as expected.”, he says. I can’t help but agree.
More at Mrzepczynski
The case for Long Short pair trades
“Instead, I think the key theme for asset allocators—as I argued a month ago—is to look within sectors. And here, the story is getting increasingly interesting. Whatever the medium-to-long run merit of the reflation trade is, my first chart shows that investors would be wise to curb their enthusiasm slightly. “
More at Alpha Sources
The best time to buy stocks – quite literally!
Dimitri Speck takes a look into intraday patterns and statistical studies pointing to best times to buy stocks in a day. “The result is startling: depending on the time of the day, returns can vary a great deal. Anyone who entered into a long position exclusively in the four hours between 12:00 am and 4:00 am was able to beat the market by a significant margin on a risk-adjusted basis.” – he says while referring to a study performed by market research company Nanex.
More at Acting Man
CEOs’ take on the Economy!
Scott Krisiloff brings a great summary of conference calls giving an insight into what the corporate thinks of the state of the American economy. “Optimism is running high and animal spirits are real, but economic activity hasn’t caught up quite yet. Still, businesses are making plans to invest and spending can’t be far behind. Corporate America is positive on Trump. Is that positivity enough to spark inflation?” – he says.
More at Avondale Asset Management
Quantamental: The new normal for Analysts
Rachael Levy interviews Matei Zatreanu, founder of System2, on what the hedge funds are looking for and how the requirements for Analysts are fast changing with the advent of “Quantamental”. “What does a junior analyst look like? Right now it’s typically someone who went to a good Ivy League school, then an investment-banking program at one of the top banks, then a hedge fund poached them to analyze the fundamentals of companies.What we argue is that that’s no longer enough. They need to understand math, statistics, and computer programming.” – says Matei Zatreanu
More at Business Insider
Nike’s Phil Knight’s biography – A story well told!
Ben Carlson does a review of Phil Knight’s Shoe Dog: A Memoir by the Creator of Nike and finds it to be a great story filled with numerable teachings unlike most biographies. “I just find that biographies are long on details and short on wisdom in most cases.”, he says. Not the case with Shoe Dog
More at A Wealth of Common Sense
Visualized: Trump’s Business Ties
Albrecht has come out two visualizations outlining his 1500 odd business connections. The data used is from Buzzfeed’s TrumpWorld investigation and provides an insight into the complex web of President Trump’s numerous business interests which he refuses to divest himself from.
More at Wired