What we’re reading (12/28)
“Investors Double Down On Stocks, Pushing Margin Debt To Record” (Wall Street Journal). “[As the market soared during the pandemic,] [s]ome investors have been tempted to chase bigger gains—and have exposed themselves to potentially devastating losses—through riskier plays, such as concentrated positions, trading options and leveraged exchange-traded funds. Others are borrowing against their investment portfolios, pushing margin balances to the first record in more than two years, to buy even more stock.”
“Dreading Or Dreaming Of A Return To The Office In 2021” (Washington Post). “The country is deep in the bleakest period of the pandemic, with thousands of Americans dying each day. That reality is not lost on affluent remote workers, who are quick to express gratitude for their own good fortune. They feel guilty complaining about Zoom fatigue and social isolation when they are working in relative safety and comfort. Yet with the Food and Drug Administration’s approval of two coronavirus vaccines, many of these remote employees find themselves imagining the new shape of their work lives in a post-pandemic America. Some glimpse a proverbial light at the end of the tunnel; others see an oncoming train.”
“Does Working From Home Make Employees More Productive?” (The Economist). “Both employers and employees have grumbled that the shift to home-working has been disruptive. But according to new research by Natalia Emanuel and Emma Harrington, two doctoral students in economics at Harvard, firms may be better off.”
“Equities Likely To Grow, But Finding Yield Remains Difficult” (CNBC). “Bottom-scraping interest rates in 2020 were a major factor fueling a stock market that, after plummeting in March from the pandemic, rallied to post a banner year. Low interest rates also vexed investors seeking yield from bonds purchased to diversify portfolios and reduce risk. But while bond yields likely will remain paltry in 2021, much higher yields are available from alternative fixed-income investments that individual investors typically overlook.”
“This Japanese Shop Is 1,020 Years Old. It Knows A Bit About Surviving Crises.” (New York Times). “Naomi Hasegawa’s family sells toasted mochi out of a small, cedar-timbered shop next to a rambling old shrine in Kyoto. The family started the business to provide refreshments to weary travelers coming from across Japan to pray for pandemic relief — in the year 1000. Now, more than a millennium later, a new disease has devastated the economy in the ancient capital, as its once reliable stream of tourists has evaporated. But Ms. Hasegawa is not concerned about her enterprise’s finances.”
