What we’re reading (6/5)
“The Three Bears?” (Charles Schwab). “Stocks, bonds, and cash are all in a bear market or teetering on the edge of one—a very rare event. Over the past 72 years, there have only been two prior periods with a triple bear.”
“Which Stocks Do Best During High Inflation?” (Wall Street Journal). “To sum up: Shares in real-estate investment trusts or companies in the real-estate industry are not the best option. Stocks in the materials and energy industries outperform all others [during periods of high inflation] by a long shot, according to the findings of a study I conducted with my research assistants, Zihan Chen and Yiming Xie.”
“Crypto’s Volatility Premium” (Marginal Revolution). “In standard economic theory, investors are risk-averse, meaning they prefer more stable consumption patterns to less stable ones. That is usually true, but it does not mean investors always prefer more stable investment prices — a crucial distinction.”
“Why The Global Soil Shortage Threatens Food, Medicine And The Climate” (CNBC). “‘There are places that have already lost all of their topsoil,’ Jo Handelsman, author of ‘A World Without Soil,’ and a professor at the University of Wisconsin-Madison, told CNBC. The impact of soil degradation could total $23 trillion in losses of food, ecosystem services and income worldwide by 2050, according to the United Nations Convention to Combat Desertification.”
“Private Equity Is Kinda, Sorta A Bit Of A Light Ponzi Scheme” (Dealbreaker). “‘We are in a big bubble in the private markets,’ [CIO Vincent] Mortier said. ‘If I take an extreme analogy, for some parts, the private equity market may look like a Ponzi scheme, a pyramid, in a way….’”
