Equity Market Pros and Cons; Bespoke Brunch Reads: 9/16/18

Below is our Bespoke Brunch Reads linkfest, featuring some of our favorite articles (both finance and non-finance related) over the past week.

Housing Booms

How tech jobs helped Rust Belt become house-flipping hotspot by David Randall (Reuters)

As tech firms spread their hiring footprint into old Rust Belt cities, condos and single family homes near downtown centers are becoming hot markets for home flipping. [Link]

Las Vegas is booming again, and bracing itself for next slump by David Randall (Reuters)

Trying to diversify away from gambling is a big challenge but Las Vegas has more than just the Strip going for it: health care, start-ups, and anything but construction. [Link]

Real Estate Busts

New York’s World Trade Center Struggles to Fill Office Space by Peter Grant (WSJ)

Despite a long and strong economic recovery, the high end of the New York City office market is underperforming and that’s the primary reason why the World Trade Center is 20% unfillled. [Link; paywall]

Building Boom Unravels, Deepening Turkey’s Economic Crisis by Georgi Kantchev (WSJ)

The massive building boom that fueled a Turkey’s economy for years has run out of foreign funding thanks to the collapse in the lira, and as a result projects are being halted with disastrous consequences for would-be buyers. [Link; paywall]

Trading Troubles

Trader blows €100m hole in Nasdaq’s Nordic power market by Philip Stafford and David Sheppard (FT)

Live by the vol, die by the vol. In extremely volatile Nordic and German electricity markets, one trader had such a bad run that stability funds in Nasdaq clearing have run up nine figure losses cleaning up the mess of horrible trades. [Link; paywall]

The Incredible Shrinking Hedge Fund by Katherine Burton, Melissa Karsh, and Sam Dodge (Bloomberg)

Very large firms that used to dominate the landscape with $10s of billions in assets are now shadows of their former selves, battling against industry-wide outflows as well as underperformance. [Link; soft paywall]

Economics

Stephanie Kelton Wants You to Rethink the Deficit by Ben Walsh (Barron’s)

A profile on the public face of modern monetary theory, an economic argument that government deficits matter much less than we usually think. [Link; paywall]

Whither Labor Force Participation? by Rene Chalom, Fatih Karahan, Laura Pilossoph, and Giorgio Topa (NY Fed Liberty St Economics)

Labor force participation has flattened out, despite an aging workforce. Per this analysis by NY Fed economists, since 2016 more than half of the trend has been due to labor market tightening. [Link]

Can Anyone Other than the U.S. Fund a Current Account Deficit These Days? by Brad W. Setser (Council on Foreign Relations)

The vast majority of current account deficits around the world are found in emerging markets, where currencies are collapsing in a fine that they can’t be funded. Is the US the only one that can still fund a deficit? [Link]

Strange News

Author of ‘How to Murder Your Husband’ arrested for allegedly killing her husband by Storm Gifford (SunSentinel)

Life is apparently just as strange as fiction; 27 years earlier, accused murderer Nancy Crampton-Brophy penned an essay “How to Murder Your Husband”. [Link]

Meet the other empty nesters. They’re dogs and they miss the kids, too by Beth Teitell (The Boston Globe)

Won’t someone think of the pups? When children head off to college or homes of their own, family pets often feel the sting of an empty house just as much as parents. [Link]

Unlikely weapon: petanque balls help disarm Paris attacker by Thomas Adamson (AP)

Petanque, which is similar to bocce or lawn bowls, is apparently a highly effective supply of weapons for citizens defending themselves against a knife-wielding attacker. [Link]

Hackers Can Steal A Tesla Model S In Seconds By Cloning Its Key Fob by Andy Greenberg (Wired)

While Tesla may have made remote access to its systems more secure, if a hacker were to gain access to a car’s key fob, they would be able to clone it and get access to the care very quickly – not so different from traditional car keys. [Link]

Sports

The Sports Pages’ New Clothes by Aaron Gordon (Slate)

The Athletic is making what is old (paid coverage of local sports) new again, hiring local talent and charging users for very high quality reporting on the teams that they follow. [Link]

Athlete Banned From All-You-Can-Eat Restaurant for Eating All That He Could by Tim Forster (Eater)

A German triathlete plunked down about $19 for an all-you-can-eat sushi dinner, consuming 100 plates or about 18 pounds of sushi. [Link]

Start a two-week Bespoke research trial now.

Here are our Week 2 NFL picks versus the spread.  We were 9-5 in Week 1.

Have a great Sunday!​

Bespoke Investment Group, LLC

105 Calvert Street, Suite 100

Harrison, NY 10528

914-315-1248

www.bespokepremium.com

Twitter: @bespokeinvest

Annunci

CWS Market Review – September 14, 2018

Bespoke Brunch Reads: 9/9/18

Below is our Bespoke Brunch Reads linkfest, featuring some of our favorite articles (both finance and non-finance related) over the past week.

Retail

This Space Available by Corey Kilgannon (NYT)

A photographic journal of open retail space around New York City that captures simultaneously the decline of traditional retail and the consequences of soaring lease costs. [Link; soft paywall]

Amazon’s treasure trove of data by Erica Pandey (Axios)

Arguably the most under-valued component of the online giant’s business is its massive trove of data on consumer behavior. [Link]

Football 

See Bespoke’s Week 1 NFL picks versus the spread here.

Runs in the Family by Sarah Spain (ESPN)

The story of an adopted NFL coach and his journey to find his biological parents. [Link]

Healdsburg High Football Team Calls It Quits After Crushing Shutout Losses by Emily Turner (CBS)

A high school team in California suffered two losses so brutal that they decided to disband the team. With only 18 players, the team lost its first two games by a combined score of 102-0, and two of the 18 players quit. [Link; auto-playing video]

Nike’s online sales jumped 31% after company unveiled Kaepernick campaign, data show by Ciara Linnane (MarketWatch)

This week’s decision by Nike to release an advertisement featuring quarterback Colin Kaepernick appears to have been good business thus far, with a 31% increase in sales over the following week (versus a 17% increase the prior year). [Link]

US Dollars

One more reminder that the US dollar is dominant by Colby Smith (FTAV)

While the demise of the dollar as the world’s reserve currency is constantly proclaimed, in reality cross-border funding is overwhelmingly dominated by the greenback and if anything that dominance is growing. [Link; registration required]

Missteps

The Regrets of Lewis Ranieri by Cezary Podkul (WSJ)

A retrospective on the career and contributions (not all positive, mind you) of the man who invented bonds backed by mortgage backed securities in the 1980s. [Link; paywall]

What went wrong at Social Capital by Dan Primack (Axios)

The downfall of what was once the hottest investment vehicle in Silicon Valley appears to have been driven by pure hubris on the part of its founder. [Link]

Social Media

SEC Wants to Keep Tabs on Social Media Posts That Could Move Markets by Aaron Boyd (Nextgov)

In a recent solicitation the SEC has started looking for a tool to monitor social media posts that can have an effect on financial markets. [Link]

Americans are changing their relationship with Facebook by Andrew Perrin (Pew)

New survey data shows over 40% of users have taken breaks from the site for at least several weeks in the past year, suggesting much less intensive use than the relatively recent history. [Link]

Meltdowns

Elon Musk appears to smoke marijuana during an interview by Victor Reklaitis (MarketWatch)

While marijuana may now be legal in numerous states, consequences and stigmas from marijuana use are still in place as Tesla CEO Elon Musk is now discovering after toking up during an interview. [Link]

Italy’s Populists Begin Their Big Betrayal by Ferdinando Giugliano (Bloomberg)

Markets forced some harsh realities onto the populist coalition governing Italy, which has backtracked on anti-euro and anti-austerity rhetoric quickly. [Link; soft paywall]

Start a two-week Bespoke research trial now.

Have a great Sunday!​

Bespoke Investment Group, LLC

105 Calvert Street, Suite 100

Harrison, NY 10528

914-315-1248

www.bespokepremium.com

Twitter: @bespokeinvest