What we’re reading (10/18)
“Are Reports Of Small-Cap Stocks’ Revival Prospects Premature?” (The Capital Spectator). “The rally in recent days of the Russell 2000 Index, a widely followed benchmark of small-cap shares, has revived hope anew that this slice of the equity market is finally set to recover after a long stretch of underperformance. But we’ve been here before, multiple times in recent years. Is this time different? Maybe, but the evidence is still a bit thin.”
“Would A Time Machine Make You A Great Investor?” (Wall Street Journal). “The latest is the ‘Crystal Ball Trading Game.’ Players are given $1 million in play money and are shown 15 Journal front pages following big economic news randomly selected over the past 15 years. With up to 50 times leverage, multiplying that pot of money sounds like shooting fish in a barrel. Yet it wasn’t, and many players instead shot themselves in the foot. Through Thursday, more than 8,000 mostly financially savvy players had taken a crack at the game. Their median ending wealth after 15 rounds was just $687,986 according to data provided by Elm. Many lost everything.”
“Wait, Are Millennials Suddenly The Wealthiest Generation?” (Washington Post). “For decades — dating back to when boomers themselves were hard(ish)-rocking, penniless rebels — the Fed, with the help of NORC at the University of Chicago, has asked Americans about their balance sheets, surveying anything from antique collections to gambling activities, from life insurance policies to home equity. In the past, this once-every-three-years survey held discouraging news for millennials. After adjusting for inflation, their wealth lagged behind where their Gen X and boomer parents had been at the same age. But when we incorporated the latest survey, conducted in 2022, we were shocked to see millennials had taken the lead. And home equity seems to have emerged as the wealth-creation hero. The eldest millennials — now in their early 40s, old enough to sue for age discrimination — boast about twice the median home equity a Gen Xer did at that age. They also enjoy a substantial lead over boomers.”
“Walmart Confirms Robots Will Run ‘Ghost Kitchens’ Inside ‘Test’ Locations And You Can Already Order Your Coffee” (The U.S. Sun). “The automated beverage system is projected to serve between 100 and 200 cups of coffee and tea each day. It is also set to appear in a new location in Peachtree, Georgia, opening this year. However, the new agreement between Richtech Robotics and Ghost Kitchens America extends its operations to 20 additional Walmart locations. Ghost Kitchens America CEO George Kottas said he hoped the decision would drive between $700,000 and $2 million in annual revenue at each location.”
“Electric Motors Are About to Get A Major Upgrade Thanks To Benjamin Franklin” (Wall Street Journal). “A handful of scientists and engineers—armed with materials and techniques unimaginable in the 1700s—are creating modern versions of Franklin’s ‘electrostatic motor,’ that are on the cusp of commercialization. It’s reminiscent of the early 1990s, when Sony began to produce and sell the first rechargeable lithium-ion batteries, a breakthrough that’s now ubiquitous.”
