What we’re reading (10/14)
“Stocks Drop After Wild Surge On Wall Street” (Wall Street Journal). “U.S. stocks fell Friday, the latest U-turn for markets after a volatile week marked by big swings in both directions.”
“U.S. Jury Convicts Nikola Founder Of fraud” (Reuters). “During the trial in federal court in Manhattan, prosecutors depicted Milton, 40, as a "con man" who sought to deceive investors about the electric- and hydrogen-powered truck maker's technology starting in November 2019.”
“Will The 60/40 Portfolio Start To Work Again?” (Morningstar). “The failure of so-called 60/40 portfolios to offer investors protection from the bear market in stocks has upended what had become conventional wisdom among the markets: Stock prices and bond prices don’t move in the same direction. That thinking has been a foundation of diversification strategies for many years. Driving this significant shift in market behavior this year has been stubbornly high inflation and the Federal Reserve’s breakneck pace of interest-rate increases.”
“Meta Has Burned $15 Billion Trying To Build The Metaverse — And Nobody’s Saying Exactly Where The Money Went” (Insider). “Meta has spent more than $15 billion on its Reality Labs metaverse venture since the beginning of last year, but so far, the company hasn't shared on what, precisely, money is being spent. Some experts are getting worried the company is spending good money after bad. ‘The problem is that they spend the money, but the transparency with investors has been a disaster,’ Dan Ives, a tech analyst at Wedbush Securities, said.”
“Meta's Shares Are A Hard Sell As Good Old Facebook Days Are Over” (Bloomberg). “Since Mark Zuckerberg’s announcement a year ago of a name change and strategy overhaul for the owner of Facebook, the stock has wiped out more than half the gain it had seen since its initial public offering a decade ago. That’s cost Meta $600 billion in market value and a spot in the elite club of the US’s 10 biggest companies.”
