What we’re reading (4/6)
“Why The Stock Market Keeps Changing Its Story” (Wall Street Journal). “Investors love to distill the bewildering variables that move prices around into a single narrative. Once enough people agree on “what’s driving markets” then the narrative can be self-fulfilling—until of course, something interrupts the story and the narrative changes. Oil, like gold, is in the unusual position of benefiting from two competing themes, a hot economy and geopolitical threats.”
“Don’t Blame Indexing For Your Problems” (Acadian). “[A]s an empirical matter, it is possible that indexing has hurt market efficiency, but that is a statement about who’s left in the non-passive sector. Let me give you an example. Suppose there are 100 investors in a stock market. We start with zero passive investors. Now suppose that 50 of the investors decide to switch to passively holding the market. Does that make the market less efficient, crushing price discovery and paving the way for Marxism? Well, it depends on who switches. If the 50 smartest and best-informed investors switch to passive, then yes, it could make prices less informative. If the 50 craziest and least informed investors switch, then maybe market prices get more informative. What matters is who stays in the market, providing price discovery and liquidity.”
“The Perfect Heist? Inside The Seamless, Sophisticated, Stealthy L.A. Theft That Netted Up To $30 Million” (Los Angeles Times). “Officials said the burglars appeared to enter through the roof. At least one alarm was triggered during the crime, but it was not connected to local law enforcement, according to a source familiar with the investigation who was not authorized to discuss it publicly. In any case, the thieves were able to get in and out without anyone knowing. There was also a hole in the side of the building covered by a piece of plywood. A law enforcement source confirmed to The Times there was an effort to breach the side but it was not clear how that area was used in the heist.”
“U.S. And China To Hold Talks On ‘Balanced Growth’ Amid Overcapacity Concerns, Yellen Says” (CNBC). “U.S. Treasury Secretary Janet Yellen said on Saturday that she and Chinese Vice Premier He Lifeng agreed to launch exchanges on “balanced” economic growth, an effort to address U.S. concerns about China’s excess manufacturing capacity. After two days of economic talks in China’s southern export hub of Guangzhou, Yellen said she and He also agreed to start a forum to cooperate on anti-money laundering efforts in their respective financial systems.”
“New York City’s New Gilded Age” (Business Insider). “The bars and restaurants that put the glint on New York City never stopped partying. While the rest of the country — businesses, investors, economists, regular people — misspent 2023 in a state of anxiety, waiting for a recession that never came, the bastions of New York City's dining elite came out of the pandemic louder, prouder, and more extravagant than ever. Here, it's ancient Rome. And if New York City has a legalized form of popular bloodsport, it's the restaurant business.”
