What we’re reading (1/16)
“The Global Memory-Chip Shortage Will Cost Us All” (Wall Street Journal). “Prices for memory shot up 50% in the last quarter of 2025 and are projected to increase another 40% to 50% by the end of the first quarter of 2026, according to Counterpoint Research, fueled mainly by builders of data centers, who are willing to pay huge premiums.”
“Stock Investors’ Strategy For 2026: ‘Don’t Fight The White House’” (New York Times). “The U.S. attack on Venezuela sent the value of some oil stocks surging. Mr. Trump’s social media post calling for a cap on credit card interest rates caused the stocks of credit card issuers to slump. And after the president proposed new requirements governing Nvidia’s computer chip sales to China, that tech giant’s stock also fell, weighing on the rest of the market.”
“Why This CEO Won’t Let Private Funds Near His Company’s 401(k)” (Wall Street Journal). “Because of unfamiliarity, concern about high fees and the threat of lawsuits, employers are wary of adding nontraded investments to their 401(k)s. Cerulli Associates, a consulting firm, projects that by 2030, only about 7% of sponsors of 401(k) and similar retirement plans will offer an investment option that includes some private assets. Sullivan thinks employers offering 401(k)s should be even more skeptical. Private and public assets are profoundly different. In a private fund, as Sullivan has learned, even small details can turn into big stumbling blocks.”
“When Housing Policy Becomes Monetary Policy” (Cato Institute). “Basically, the administration is asking Fannie and Freddie to engage in the kind of large-scale asset purchases (LSAPs) the Fed used in the wake of the 2008 financial crisis and the COVID-19 pandemic. LSAPs are controversial even when conducted by the central bank charged with managing monetary policy. Having the GSEs carry out a similar strategy represents a significant expansion of their role and a dangerous institutional precedent. Fannie and Freddie were never designed to function as alternative monetary authorities.”
“Gold Falls As Trump Hesitates On Hassett As Fed Chair Pick” (Bloomberg). “Gold slipped the most in more than two weeks after US President Donald Trump expressed reluctance about nominating Kevin Hassett as Federal Reserve chair, casting further doubt over his search for the next head of the central bank.”
