What we’re reading (8/21)
“Global Stocks Fall As Delta Variant Concerns Intensify, With Oil Extending Its Losses” (Business Insider). “[T]he spread of the Delta variant of COVID-19 was front of mind [for investors this past week], and what that could mean for economic recovery in the US as well as Asia and elsewhere. Hospitalizations and deaths are on the rise in the US, where average daily cases on Thursday topped 130,000 for the first time since February, official data showed. Investors concerned about economic growth are looking ahead to the Federal Reserve Chair Jerome Powell's comments at the Jackson Hole symposium next week. They are bracing to hear more about its timeline for tapering and easing of economy-stimulating policies.”
“In Nod To Delta Variant, Fed Moves Jackson Hole Meet Online” (Reuters). “The Federal Reserve Bank of Kansas City said on Friday its annual economic symposium in Jackson Hole, Wyoming, will take place on Aug. 27 virtually and not in person as planned, the clearest sign yet of the impact of the COVID-19 Delta variant on the Fed's plans.”
“Ark’s Cathie Wood Says Stock Market ‘Couldn’t Be Further Away From A Bubble.’ Here’s Why.” (MarketWatch). “[S]tar investor Cathie Wood, who runs a suite of popular ETFs in Ark Investment Management, says that there’s no reason to fear that the market is becoming too bubblicious…Wood’s view on the market…is that investors are acting much more sedately and prudently, compared with the euphoria that was characteristic of the late 1990s and early 2000s dot-com boom. ‘In a bubble…and I remember the late ’90s…our [Ark Invest’s] strategies would have been cheered on,’ she told the business network. ‘You remember the leapfrogging of analysts making estimates one higher than the other, price targets one higher than the other,’ she said on ‘Tech Check.’”
“SEC Weighs Requiring Companies To Give More Details On Workers” (Wall Street Journal). “The Securities and Exchange Commission is considering asking public companies to disclose more information about their workforces. ‘Investors want to better understand one of the most critical assets of a company: its people,’ SEC Chairman Gary Gensler said earlier this week in a Twitter thread. ‘I’ve asked staff to propose recommendations for the Commission’s consideration on human capital disclosure.’ Mr. Gensler previously said the disclosures would likely be mandatory for public companies and could touch on a number of metrics, including turnover, skills and development training, compensation, benefits, workforce demographics including diversity, and health and safety.”
“Here’s More Evidence That Factor Investing Works In Fixed Income” (Institutional Investor). “NTAM [Northern Trust Asset Management] researchers found that 70 percent of excess returns of actively managed fixed income funds can be traced to simple exposures to factors such as duration and credit [quality]. They also determined that systematic factors may offer more opportunities to earn income without taking too much credit risk or tying up money in illiquid investments.”
