What we’re reading (3/20)
“Fed Projections See An Economy Dramatically Reset By Trump’s Election” (Wall Street Journal). “Months ago, policymakers presumed they would spend 2025 gradually cutting rates to keep inflation heading down without a big rise in joblessness to achieve the so-called soft landing. The latest projections point to the prospect that tariffs covering a swath of goods and materials will send up prices while sapping investment, sentiment and growth, at least in the short run.”
“U.S. Dollar Stands Tall After Fed Signals No Rush To Cut Rates” (Reuters). “The U.S. dollar was on the front foot against major peers on Friday after its best single-day performance for three weeks with the Federal Reserve indicating no rush to cut interest rates. The risk-sensitive Australian and New Zealand dollars remained on the defensive after steep slides on Thursday as worries about the economic drag from U.S. President Donald Trump's aggressive campaign of global trade tariffs dented sentiment.”
“Is The Stock Market Cheap Yet?” (Morningstar). “The recent selloff in stocks rattling investors has had one major side effect: The market is looking cheaper after pushing into overvalued territory late last year. As stock prices have fallen in the first months of 2025, so too have equity valuations.”
“Anti-Dividend Investing: Yield Matters—But Not How You Think!” (Alpha Architect). “Dividends are the comfort food of investing. Who wouldn’t love feeling like they’re getting a seemingly “free” payout just for holding onto a stock? It’s no wonder so many investors are drawn to the siren call of yield. As with all good things, there’s a little more—perhaps a whole lot more—to the story. Here’s why: it’s possible that even in a tax-free setting, selling stocks before dividend payouts can lead to abnormal returns.”
“Oxygen Discovered In Most Distant Known Galaxy” (Phys.Org). “Discovered last year, JADES-GS-z14-0 is the most distant confirmed galaxy ever found: it is so far away, its light took 13.4 billion years to reach us, meaning we see it as it was when the universe was less than 300 million years old, about 2% of its present age. The new oxygen detection with ALMA, a telescope array in Chile's Atacama Desert, suggests the galaxy is much more chemically mature than expected.”
