What we’re reading (10/15)
“Goldman’s Pandemic Hot Streak Continues in Third Quarter” (Wall Street Journal). “Goldman’s quarterly profit of $3.62 billion on revenue of $10.78 billion was better than stock analysts had forecast and sharply higher from a year ago. Since then, the global economy has crashed, political turmoil has continued and interest rates have dropped to near zero—all things that should dent Wall Street profits. And yet the nation’s biggest banks remain profitable. Their securities-trading desks have, remotely, hummed back to life. Big corporate bankruptcies have leveled off. Depositors haven’t pulled their money.”
“A Horrifying Covid Chart Still Frightens Months Later” (Bloomberg). “In late June, I highlighted what I deemed a "horrifying" chart showing massive growth in new infections in the U.S. relative to the European Union. A key explanation for the discrepancy was that many U.S. states were moving forward with reopening despite high case counts, while many European countries had waited to ‘crush the curve’ and ensure infections were lower before loosening restrictions. Now, almost four months later, that same chart remains very scary — but in a different way. For the first time since March, the EU is reporting more new Covid-19 cases on a population-adjusted basis than the U.S.[.]”
“Your Portfolio Is Not As Diversified As You Think, Unless You Are Utilizing This Powerful Strategy” (MarketWatch). “With historically low interest rates, investors are cramming money into stocks, especially in large-cap technology companies including Microsoft Corp. and Facebook Inc. A simple way to diversify by asset class while cutting risk and benefitting from long-term stock gains is to own convertible bonds.”
“Capital Is Pumping Into ETFs” (Dealbreaker). “Through the first nine months of the year, investors have plowed $488 billion into ETFs compared with $349 billion during the same period in 2019, according to data provider ETFGI.”
“United Posts Another Huge Loss After Pandemic Guts Demand For Air Travel” (CNN Business). “United Airlines posted its third huge quarterly loss of the year, saying it is ready to ‘turn the page’ and prepare for a recovery from the worst financial crisis ever faced by the airline industry. The carrier posted a $2.4 billion loss excluding special items, slightly less the $2.6 billion it lost on that basis in the second quarter but a bit above analysts' forecasts. Its net loss of $1.8 billion also exceeded the previous quarter's loss.”
