What we’re reading (11/17)
“Investors Are Betting On A Market Melt-Up” (Wall Street Journal). “U.S. equity exchange-traded and mutual funds drew nearly $56 billion in the week ended Wednesday, the second-largest weekly haul in records going back to 2008, according to EPFR data. Such funds have drawn inflows for seven consecutive months, the longest streak since 2021, when a dizzying market melt-up sent stocks to repeated records.”
“The S&P 500 Has Come To A Major Postelection Crossroads” (MarketWatch). “The construct of volatility derivatives has taken on a more bullish outlook for stocks. This has been occurring since the election and seems to have reached a stabilization point now. The term structures of the VIX futures and of the Cboe Volatility Index are sloping upwards, and the VIX futures are trading at a premium to VIX. In particular, the December VIX futures are trading a full point higher than the November VIX futures, and that is a return to a fully bullish status for stocks.”
“Gold Prices Have Dropped Since The Election. Here’s Why” (Fast Company). “What’s going on? Part of the decline has coincided with the strengthening of the U.S. dollar against other major currencies. Tariffs and trade wars instigated by the United States could push down the value of the euro and other countries’ currencies, and a strong U.S. dollar makes it more expensive for buyers using those other currencies to purchase gold.”
“Jay Bhattacharya, An NIH Critic, Emerges As A Top Candidate To Lead The Agency” (Washington Post). “The rise of Bhattacharya — from being scorned by the nation’s NIH director to possibly occupying his office four years later — reflects how the backlash to coronavirus policies has helped reshape conservative politics and elevate new voices. While Collins and other public health experts maintain that the Great Barrington Declaration’s ideas were rash and would have put vulnerable people at risk, many Americans have come to believe that school shutdowns and other pandemic-related policies lasted too long.”
“AI And The Last Mile” (Anecdotal Value). “So here’s an uncomfortable truth: the "last mile" will become the new gated community, where inside the velvet ropes are expert humans with discernment. While AI promises to democratize everything from college admissions to job hunting, this human discernment will become a luxury good. The wealthy parent hires the counselor who "just knows" which college is the right fit. The well-connected job seeker gets the coffee chat that no algorithm can replicate. Even as AI gets better at matching people with opportunities, those crucial final judgment calls — the ones that often make all the difference — will remain hidden behind the velvet rope of privilege and social capital. We're creating a world where AI algorithms serve the majority while human insight becomes the ultimate premium service.”
