>> Click Here for Historical Wall Post Listing <<
Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.
This feature is published every day late afternoon New York time. For early morning review of headlines see "The Early Bird" published every day in the early am at GEI News (membership not required for access to "The Early Bird".).
Every day most of this column ("What We Read Today") is available only to GEI members.
To become a GEI Member simply subscribe to our FREE daily newsletter.
The rest of this post is available only the GEI Members. Membership is FREE - click here.
Articles about events, conflicts and disease around the world
Stock Picking is Back (Chart Lab Pro) First, it looks to us as if stock picking has always been important,certainly for the one year of data shown. But what is significant is the high level of stocks rated at the bottom (Rating 5), currently 50% of the S&P 500 and having hit as high as 75% a couple of times over the past year. One has to pick very carefully to avoid getting one or more of them in any portfolio with even a small number of stocks.
The Idolatry of Interest Rates Part I: Chasing Will-o’-the-Wisp (James Montier, GMO White Paper) Hat tip to Cullen Roche. See article later in this column (below). Another analysis of the issue of a natural rate of interest, or better stated, the lack of such a thing as a natural rate of interest. he concept depends on thinking in terms of the hypothetical loanable funds theory and the assumption that there is a natural relationship between prices (inflation) and interest rates. The natural relationship is not observable empirically because interest rates are not market-determined but are set by central banks (contrary to many economic models). A necessary relationship in these monetary models is that savings rates are influenced by interest rates: higher interest encourages increased savings and vice versa. Montier shows that savings in the form of investment by firms is determined by the expectation of future profits and is not affected by interest rates. He further shows that individuals do not change savings as a function or real interest rates. Econintersect: We challenge you to find a line upwardly sloping to the right in the scatter plot of 60 year's of data:
Other Economics and Business Items of Note and Miscellanea
Econintersect Behind the Wall
|.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet|
|Asia / Pacific|
|Middle East / Africa|
This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved