What we’re reading (9/29)
“Stocks Could Slide Further As Interest Rates Rise And Big Tech Drags The Market” (CNBC). “Big Tech and growth names are sensitive to higher rates since their high valuations are based on future growth and cash flow. When interest rates rise, the value of that future cash flow is discounted. But Oppenheimer technical analyst Ari Wald said the fact that Big Tech is selling off means that those popular large cap growth stocks are joining the many other stocks that already had big downturns. ‘It hadn’t spilled over into the large cap and now it has. We see that as a sign of capitulation,’ he said. Wald added he sees more downside for the S&P 500′s July low of about 4,230.”
“Men Over 45 Who Identify As Having ‘Excellent Investment Experience’ Are More Likely To Panic Sell During A Market Downturn, MIT Study Finds” (Insider). “[A] study from MIT has identified the cohort of people that are most likely to panic sell at the worst possible time: men over the age of 45 who are either married or identify as having ‘excellent investing experience.’ Cohorts with more dependents or an account size of less than $20,000 are also more likely to ‘freak out’ and panic sell. The MIT paper analyzed the trading behavior of more than 600,000 brokerage accounts attached to more than 200,000 households to identify who is selling and potentially be able to predict when they might sell in the future.”
“Elizabeth Warren Will Oppose Fed Chair Powell’s Renomination, Calls Him ‘Dangerous Man’ To Lead Fed” (CNN Business). “Democratic Senator Elizabeth Warren announced Tuesday that she will oppose Federal Reserve Chairman Jerome Powell's renomination, making her the highest-profile lawmaker to do so. ‘Your record gives me grave concern. Over and over you have acted to make our banking system less safe. And that makes you a dangerous man to head up the Fed,’ Warren told Powell during a Senate Banking Committee hearing.”
“Houlihan Lokey Co-President Accused Of Double-Dealing As He Bought Jet With Tech CEO” (New York Post). “A top Wall Street banker is being accused of bizarre double-dealing at a California tech firm where he serves as a board member. Scott Adelson, co-president of the prominent investment bank Houlihan Lokey, allegedly leaked information to the would-be acquirer of QAD Inc. — a publicly traded software firm based in Santa Barbara, Calif. — even as he secretly entered a deal to buy a private jet with the company’s CEO, according to an explosive lawsuit.”
“Federal Judges With Financial Conflicts” (Wall Street Journal). “The Wall Street Journal analyzed nearly a decade’s worth of legal and financial records and discovered 131 federal judges who unlawfully heard cases where they had a financial interest…[o]ver the past several weeks, the Journal has informed these judges of their recusal violations. As a result, 56 federal judges have notified courts in 329 cases around the U.S. that they heard cases improperly and that parties to the case could ask for them to be reopened.”
