What we’re reading (5/28)
“Tech Stock Rally Leaves Small-Caps In The Dust” (Wall Street Journal). “The Russell 1000 index of large companies has gained 9.2% this year, beating the 0.7% advance of the small cap concentrated Russell 2000. That is the widest outperformance since 1997, when looking at years in which the Russell 1000 has been in positive territory through May 26, Dow Jones Market Data show.”
“The Tech Trade Is Back, Driven By A.I. Craze And Prospect Of A Less Aggressive Fed” (CNBC). “‘Being concentrated in these mega-cap tech stocks has been where to be in this market,’ said Victoria Greene, chief investment officer of G Squared Private Wealth, in an interview on CNBC’s ‘Worldwide Exchange’ Friday morning. ‘You cannot deny the potential in AI, you cannot deny the earnings prowess that these companies have.’”
“As Debt Ceiling Negotiators Finalize Deal, The Nation Watches Anxiously” (Washington Post). “President Biden and House Speaker Kevin McCarthy (R-Calif.) announced late Saturday that they had reached an ‘agreement in principle’ to raise the debt ceiling and cap federal spending. But that deal still needs congressional approval to prevent a government default, and lawmakers in both parties have been raising objections over the past week.”
“Jeff Bezos Mid-Life Crisis Rumors Resurface After Lauren Sanchez Proposal” (New York Post). “Bezos now appears to be having a “mid-life crisis to end them all’[.]”
“Do Tax Increases Tame Inflation?” (Marginal Revolution). “Here is a new AER article by James Cloyne, Joseba Martinez, Haroon Mumtax, and Paolo Surico. After an extensive data analysis, they arrive at this conclusion: ‘Based on US federal tax changes post–World War II, our answer is ‘yes’ if personal income taxes are increased but ‘no’ if corporate income taxes are increased. Of course this is consistent with the view — no longer so commonly admitted — that higher corporate tax rates do have negative supply side effects.”
