Wednesday Reading List
The Dow Is a Terrible Index. But It Is Telling Us Something Important. by The Wall Street Journal
The Dow is underperforming the S&P 500 by a lot. This is partly due to the odd way it is constructed based on share price versus market capitalization and that it tends to focus on old economy companies. “The trouble is that trying to choose just 30 stocks to represent the economy makes the selection committee resist putting in new members until they have been doing so well for so long that it can’t be avoided. At turning points in the economy, this is risky because that is when the new players are often highly overvalued.” For those reasons, it’s not a great benchmark to compare performance against.
Loan Me A Dime by Charles Schwab Asset Management
To me this is the big story that isn’t getting enough attention. Banks are pulling back on lending, slowing down deal activity and hurting the economy. “With loan supply (and cost) remaining somewhat restricted, any resultant slower economic growth could help turn the light for Fed rate cuts from yellow to green.”
The state of the stock market in 18 charts 📉📈📊 byTKer
One of my favorite finance writes shares 18 charts showing amongst other things that profit margins are holding up, earnings outlook is improving, stocks don’t mind higher rates, and that you don’t need to worry about the election when it comes to your portfolio.
The Post‑Pandemic Shift in Retirement Expectations in the U.S. by Federal Reserve Bank of New York
Not only did Covid bring the Great Resignation but in a big shift, fewer people are expecting to work past their early to mid-60’s.
IRS boosts health savings account contribution limits for 2025 by CNBC
The triple tax-free savings account just saw its contribution limits increase for next year.
3 reasons the dollar can’t be dethroned as the world’s dominant currency, according to Morgan Stanley by Business Insider
This concern/question still comes up a lot for some reason. Morgan Stanley says the yuan isn’t liquid enough to challenge the dollar, US debt concerns won’t hurt the dollar, and crypto isn’t a viable alternative.
The Impact of Military Conflict on Markets by Heritage Financial
Escalating conflicts in the Middle East have led investors to question what impact expanded conflict may have on their portfolios.
Latest Book Recommendation
The Demon of Unrest: A Saga of Hubris, Heartbreak, and Heroism at the Dawn of the Civil War by Erik Larson
#1 NEW YORK TIMES BESTSELLER • The author of The Splendid and the Vile brings to life the pivotal five months between the election of Abraham Lincoln and the start of the Civil War in this “riveting reexamination of a nation in tumult” (Los Angeles Times).
Things to Do in Boston This Weekend
Things to Do in Boston This Weekend
Things to Do This Week in Boston