What we’re reading (1/17)
“IMF Raises Global Economic Growth Forecast On Stronger US Demand” (Bloomberg). “The International Monetary Fund upgraded its global growth forecast for this year, spurred by stronger-than-expected US demand and slowing inflation worldwide that will let central banks continue to cut interest rates.”
“How Will Home Insurance Change After LA’s Fires?” (The Week). “The California fires have devastated Los Angeles. They may also wreak havoc on the insurance industry: Experts say total losses will reach $250 billion or more."
“China’s Very Bad, No Good Trillion-Dollar Trade Surplus” (Paul Krugman’s Substack). “I often run into people who believe that a successful economy, one achieving rapid productivity growth and leading in cutting-edge technology, will both run big trade surpluses because it’s so competitive and attract lots of foreign capital because it’s such a good investment. But that’s arithmetically impossible. In fact, when an economy surges past its rivals in productivity and technology, it usually does attract a lot of foreign investment — but that means that it runs a trade deficit, not a surplus. A case in point: U.S. productivity surged past productivity in Europe after around 1995, because we were quicker to take advantage of information technology. As a result, foreign money began flooding in — and that led to a much bigger U.S. trade deficit[.]”
“The 2024 Sector Quilt” (A Wealth Of Common Sense). “I understand the desire to pick sectors. Sure, picking stocks is hard but sectors can help you catch trends by investing in a group of stocks. I’m sorry to say I have some problems with this sector-picking strategy. For one thing, it doesn’t move the needle all that much.”
“Is TikTok Really Worth Saving?” (Vanity Fair). “The Supreme Court won’t be rescuing TikTok, as billionaires and political leaders scramble to keep the app alive in the US ahead of a looming deadline. But amid all the eleventh-hour drama, the rationale for banning it in the first place—national security concerns stemming from its Chinese ownership—hasn’t gone away.”
