What we’re reading (10/15)
“A Recession Is No Longer The Consensus” (Wall Street Journal). “Economists are turning optimistic on the U.S. economy. They now think it will skirt a recession, the Federal Reserve is done raising interest rates and inflation will continue to ease.”
“Bonds Have Been Awful. It’s A Good Time To Buy.” (New York Times). “Fixed-income investors have been experiencing calamitous price declines in the bond market since summer 2020. Some 30-year U.S. Treasuries have lost 50 percent of their value, the Bank of America team noted. In parts of the international market, losses have been worse. An extremely long-term Austrian bond — one with a 100-year maturity — plummeted 75 percent in value. As interest rates have risen over the past few years, breathtaking price movements have been occurring with dismaying frequency. And as losses have mounted, it’s been easy to give up on bonds.”
“Despite Big Losses, Investors Flock To Long-Term Bond ETFs” (Morningstar). “The iShares 20+ Year Treasury ETF TLT is down nearly 15% this year, but the exchange-traded fund’s poor performance hasn’t deterred investors. Instead, the high yields brought on by the bond market’s sell-off seem to have attracted them. Investors have poured $17.2 billion into the $40.7 billion fund this year, making it the third most popular ETF in terms of flows so far in 2023.”
“Workers With In-Person Jobs Spend About $51 A Day That They Wouldn’t Remotely, Survey Finds” (USA Today). “From getting stuck in traffic and the extra effort put into getting dressed, many employees would much rather clock in from home. However, a recent survey found that one of the biggest reasons could simply be how costly it is to make money. Owl Lab’s 2023 ‘State of Work’ report found 66% of U.S. employees who returned to the office to work five days a week or full time, spend an average of $51 every workday.”
“Will the United States Be the Next Israel?” (Politico). “What’s happening in Israel now is a disturbing example of what can happen when elected officials use partisan and personal motivations to warp national security. For years, Republicans in Congress have attempted to sabotage what they call the ‘Deep State.’ This includes placing holds on political nominees and castigating diplomats, officers and analysts employed in the government as captives to ‘Big Woke.’ They might see it as political theater, necessary to boosting profiles and fundraising. But as this week shows, there can be a price.”
