What we’re reading (7/22)
“The Fed Must Be Independent” (Ben Bernanke, Janet Yellen). “But an overwhelming amount of evidence, drawn from the experiences of both the United States and other countries, has shown that keeping politics out of monetary policy decisions leads to better economic outcomes. A particularly clear lesson of history is that when central banks are forced to finance government deficits — by keeping interest rates excessively low, to cite one possibility — the result is inevitably higher inflation and economic damage.”
“Kohl’s And Opendoor Headline A New Class Of Meme Stocks” (Wall Street Journal). “Individual investors are once again loading up on a group of unloved stocks and taking to social media to defend them from the haters and the short sellers. Meet the cast of the meme-stock craze, season two.”
“Bullish Retail Traders Are The Biggest Force Behind The Stock Market’s Latest Rally To All-Time Highs” (Business Insider). “Retail traders have been on a dip-buying frenzy since President Donald Trump announced his tariffs in April. Analysts at Barclays estimated that retail traders ploughed around $50 billion into global stocks in the last month. Stock-buying among institutional investors has paled by comparison, with hedge fund re-risking remaining "modest" and their long positions in US stocks remaining below the long-term median, the bank said on Tuesday.”
“Make Your Own Luck: Mid-Year Outlook For 2025” (KKR). “As we look ahead at KKR, we remain positive. To be sure, we expect more market drawdowns than in the past, but our ‘Glass Still Half Full’ thinking is that attractive financial conditions, a global easing cycle, ongoing productivity gains, and lack of net issuance—coupled with some incredibly powerful investment themes—will continue to drive this cycle both further and longer than many think.”
“Texas Instruments Plunges After Forecast Fuels Tariff Fears” (Bloomberg). “Though the company issued a third-quarter forecast that beat most estimates, the outlook was more guarded than some investors had anticipated. The stock fell further during a conference call, when executives struggled to win over analysts who said the company’s tone had become increasingly negative. The main concern is whether tariffs and trade disputes will hurt a sales resurgence that’s still in the early stages.”
