What we’re reading (5/16)
“Companies Are Flush With Cash—And Ready To Pad Shareholder Pockets” (Wall Street Journal). “After a year of hoarding cash, American corporations are ready to reward investors again. Companies across industries have been buying back stock and raising dividends at a brisk pace this year. That is a sharp reversal from 2020, when they suspended or cut such programs, warning of the urgent need to preserve liquidity in the early stages of the Covid-19 pandemic.”
“The Headhunters Leading Wall Street's Systematic-Trading And Data-Science Hiring Frenzy” (Business Insider). “The market for quant and data-science specialists has perhaps never been hotter. And the technologists, researchers, scientists, and traders developing cutting-edge investment strategies and platforms aren't just coveted by hedge funds. They're the lifeblood of high-frequency-trading (HFT) firms and proprietary market makers, as well as investment banks building out their systems for electronic trading and execution.”
“Here's What's Getting More Expensive” (CNN Business). “Used cars, homes, lumber, gas and chicken: What do they all have in common? They're all getting more expensive. The stimulus-fueled economy is rebounding and Americans are again spending on shopping, traveling and eating out. But the pandemic is far from over, and supply-chain woes mean supply isn't meeting demand -- sending prices even higher.”
“How A Stock-Market Selloff Made Junk Bonds An Unlikely Safe Haven” (MarketWatch). “Inflation scares haven’t created havoc everywhere. U.S. stocks booked a weekly loss after hot inflation data for April spooked investors bracing for a roaring, but potentially messy economic recovery. Their counterparts in the debt world barely budged. High-yield, or “junk bonds,” issued by riskier U.S. companies tend to mimic equities when rough patches hit. Lately that correlation has been breaking down.”
“When MTV Debuted 40 Years Ago, Everyone Thought It Would Fail. Here’s Why It Didn’t” (Vanity Fair). “Some products, in hindsight, seem like they were immediately destined for success. Take dishwashers, automobiles, or light bulbs—each created a demand for a product that hadn’t existed before, except in inferior incarnations. Once people knew about these significant upgrades in convenience, speed, or reliability, success and profit was assured…[b]ut MTV’s creation isn’t a Social Network tale of Ivy League boffins on track for greatness; it’s more like The Bad News Bears, a tale of scrappy underdogs.”
