Wednesday Reading List

ICYMI: Investing Lessons from the Man Who Beat the Casinos – Ed Thorp is a brilliant guy who used math to beat the casinos. Along the way, he was drugged, threatened, and cheated by casino bosses. Unable to get the winnings his systems deserved he pivoted to using his math prowess on investing and learned some great investing lessons he shared through his autobiography.

Given today’s higher interest rates, how should you think about paying off debt?

Just a few years ago savvy investors took out debt or refinanced higher interest loans to take advantage of the record low interest rates. They’d then invest their savings in an effort to earn a higher return on their investments than their debt would cost them in interest. Taking advantage of this “hurdle rate” was an easy decision. Today, the decision to put cash toward paying off debt or investing isn’t as clear.

AQR: Emerging Market Stocks Have Best Return Profile in 20 Years

According to the latest report from AQR, EM stocks are now expected to generate about a 3 percent premium over developed market stocks, one of the highest levels in the past 25 years. 

Mental Liquidity

Mental liquidity is so rare. Changing your mind is hard because it’s easier to fool yourself into believing a falsehood than admit a mistake.

2023 Quarterly Market Outlook: Fed on the Brink? 

Economic cracks began to appear during the first quarter, capped off by banking system worries. Will it change the direction of Federal Reserve policy?

How Microsoft became tech’s top dog again

After a lost decade in which it flailed and lost its prominence in the world of tech, Microsoft is again on the rise — thanks to ChatGPT and the company’s focus on AI.

Job openings tumbled below 10 million in February for the first time in nearly two years

Job openings fell below 10 million in February for the first time in nearly two years, in a sign that the Federal Reserve’s efforts to slow the labor market may be having some impact.

14 Charts on the Q1 2023 Whiplash Market Performance

Big swings in expectations around Fed policy dominated stock and bond market returns.

Book Recommendation

Book cover for Bad Blood Secrets and Lies in a Silicon Valley Startup by John Carreyrou

Bad Blood: Secrets and Lies in a Silicon Valley Startup by John Carreyrou

NATIONAL BESTSELLER • The gripping story of Elizabeth Holmes and Theranos—one of the biggest corporate frauds in history—a tale of ambition and hubris set amid the bold promises of Silicon Valley, rigorously reported by the prize-winning journalist. With a new Afterword covering her trial and sentencing, bringing the story to a close.