What we’re reading (8/9)
“Disney+ Hikes Prices As Sales Sink Across The Company” (CNN Business). “On Disney’s fiscal third quarter earnings call, CEO Bob Iger said pricing decisions were made with the goal of pushing more Disney+ subscribers to the service’s ad-supported tier…The price hike comes after Disney reported that its streaming business remains unprofitable, though it has narrowed its revenue loss in the third quarter. Streaming subscribers in the US and Canada are pulling back, as well. Disney reported a 1% decline in domestic subscribers for the second quarter in a row. International subscribers grew 2% in the quarter.”
“Historic Supreme Court Case Could Imperil The Entire US Tax Code” (The Hill). “The case (Moore v. United States) concerns the constitutionality of the 2017 Tax Cut and Jobs Act (TCJA). The act imposed a mandatory repatriation tax on pre-2018 profits that companies and some U.S. shareholders stored abroad. Previously, foreign business profits went untaxed until they returned to U.S. shareholders. But under mandatory repatriation tax, passed as part of Republicans’ comprehensive international tax reform, profits were taxed even if shareholders never received the income.”
“The (In)Accuracy Of Market Forecasts” (Larry Swedroe). “The financial media tends to focus much of its attention on market forecasts by so-called gurus. They do so because they know it gets the investment public’s attention. Investors must believe they have value or they wouldn’t tune in. Yet, a large body of evidence demonstrates that market forecasts from gurus have no value in terms of adding alpha […] —the accuracy of ‘expert’ forecasts is no better than one would randomly expect.”
“Banks’ Problems Aren’t Over, According To The Bond Market” (Wall Street Journal). “On Monday, ratings firm Moody’s Investors Service took action on 27 banks, including downgrading the credit ratings of 10 and putting others under review or giving their ratings a negative outlook. Credit ratings are very important for banks, which fund themselves partly with deposits, but also by selling bonds.”
“What Studies Say About UFO🛸 Conspiracies” (Alexander Webb). “Even if the aliens part is made up—and I am not saying it is or isn’t—the other elements of the story are definitely real and can be studied. These elements include; 1) The math of conspiracies. (When does an organization get too big to keep a secret?) 2) The physics of theoretical alien spacecraft. (Based on sightings, what are the capabilities of these hypothesized craft?) 3) The psychology of emotional stories. (Can we tell when an emotional story is true or false?) 4) What are the odds of life on other planets. (Based on certain assumptions, what are the odds alien life exists?)”
