What we’re reading (10/21)
“The S&P 500’s Golden Decade Of Returns Is Over, Goldman Says” (Business Insider). “The stock market's decadelong golden age will soon be a thing of the past, Goldman Sachs said. A new report from the firm's portfolio-strategy research team forecast that the S&P 500 would see an annualized nominal return of 3% over the next 10 years. That would put it in the 7th percentile of performance since 1930. It would also badly lag the 13% annualized figure put up by the benchmark index over the prior decade, Goldman data showed…market concentration is near its highest level in 100 years, Goldman said.”
“Activist Urges Cheesecake Factory To Consider Breakup” (Wall Street Journal). “An activist investor has built a position in Cheesecake Factory and is urging the restaurant operator to spin off three of its smaller brands into a separate public company, according to people familiar with the matter.”
“Money Market Rates Are Lower, Yes. But Compared To What?” (New York Times). “Hundreds of billions of dollars flowed into the funds, which swelled in size month after month. Now that the Federal Reserve has begun cutting short-term interest rates — and money market funds have begun reducing their rates, too — you may expect that these funds would be less appealing. But nothing could be further from the truth. The “wall of cash” in money market funds isn’t flowing into the stock market or other risky investments. It is, for the most part, staying where it is — and growing larger.”
“Here’s One Economic Message From The Costco Gold Bar Craze” (Yahoo! Finance). “The wildly popular Costco bullion was introduced to warehouse club members last year via 24-karat 1 oz bars. The product has flown off the shelves, with Costco raking in a reported $200 million per month in gold bar sales. Demand has been so great that the retailer has begun to offer platinum bars.”
“Chick-Fil-A Is Releasing Its Own Entertainment App, With Family-Friendly Shows And Podcasts” (CNBC). “Chicken sandwiches, waffle fries, milkshakes – and now TV shows and podcasts? Chick-fil-A plans to launch a new app on Nov. 18, with a slate of original animated shows, scripted podcasts, games, recipes and e-books aimed at families. While it’s an unusual move for a restaurant company to wade into the crowded media world, Chick-fil-A has been expanding outside of food for years already — with the ultimate goal of directing more people to its over 3,000 restaurants.”
