Wednesday Reading List

Capital efficiently and frequently flows between bonds and stocks. It pays to keep an eye on yields offered by these markets

Naved Abdali

ICYMI: Investing in China – Gabriela Santos, Global Market Strategist on the J.P. Morgan Asset Management Global Market Insights Strategy team about investing in Chinese markets and what’s been happening with the Chinese economy and markets from before COVID-19 through today.

See also: China Isn’t Japan in the 1990s. How Its Economic Meltdown Is Different. by Barron’s and China’s 40-Year Boom Is Over. What Comes Next? by The Wall Street Journal

Vertigo: Market Succumbs to Myriad Pressures by Charles Schwab Asset Management

Liz Ann Sonders’ latest looks at why she’s not surprised by this small market pullback and why she expects more volatility ahead all while breaking down the market’s recent performance in greater detail.

Chart Table of the Week

Everything & Everyone Underperforms Eventually by Ben Carlson

Ben looks at the recent underperformance of long-term bonds and shows why it’s going to happen with every investment type using historic examples.

Markets Brief: Is the Bond Market’s Recession Indicator Broken? by Morningstar

The inverted yield curve, a reliable recession predictor, and the fact that Leading Economic Indicators have been signaling a recession for a while make me reluctant to signal the all-clear on this recovery. This article breaks down what an inverted yield curve means and why it still might prove a reliable recession indicator this time around.

Investing in Artificial Intelligence (AI) by Charles Schwab Asset Management

Jeffrey Kleintop’s latest. As businesses worldwide adopt the technology, the innovation of AI may result in market leadership changes, global economic growth, and investor opportunities.

How to Get Rich and Famous From a Stock Market Crash by The Wall Street Journal

So good I wish I had written it. “It isn’t hard to understand why prophets of doom get so much public attention, but how does one explain famous ones being so unimpressive after they become famous?”

The Moves Wealthy Families Are Making to Skirt Estate Taxes by The Wall Street Journal

The Trump tax cuts of 2017 temporarily doubled the base amount individuals could give away without paying estate taxes to $10 million. These cuts are due to expire in 2026, pushing wealthy Americans to move fast.

Podcast Recommendation

As the Chief Investment Officer of Global Fixed Income for BlackRock, Rick Rieder and his team are responsible for about $2.4 trillion of assets. In this episode of Goldman Sachs Exchanges: Great Investors, Rieder shares his views on the markets, the strength of the U.S. economy, and where he’s finding investment opportunities.

Book Recommendation

Five Families: The Rise, Decline, and Resurgence of America’s Most Powerful Mafia Empires by Selwyn Raab

A 10th-anniversary edition of the New York Times bestselling history of the Mafia’s infamous Five Families, featuring a new preface by the author.

Five Families is the vivid story of the rise and fall of New York’s premier dons, from Lucky Luciano to Paul Castellano to John Gotti and others. This definitive history brings the reader right up to the possible resurgence of the Mafia as the FBI and local law-enforcement agencies turn their attention to homeland security and away from organized crime.