04 Jan Interesting Reads – January 3rd, 2017

Is there a better way to start a new year than with interesting reads and/or educational items to start the year off on the right foot?  We don’t think so.  Below are some of interesting reads from the past couple of weeks, slightly delayed due to the busy holiday schedule.

Bonds Down, Stocks Up

 

The Brooklyn Investor compiled one the best simple breakdowns I’ve seen on bonds versus stocks.  Rising rates have spooked a number of investors who believe that they will negatively impact equity prices.  While this may be the case at some level, there is a decent amount of wiggle room.  Basically the rubber band was stretched and rates can move substantially higher before getting to equilibrium.

 

Reflections on the Trump Presidency, One Month After the Election – Ray Dalio

 

This link may have been provided already, but it’s an important (and quick) read about the next four (or eight) years.  The folks at Bridgewater put together some interesting charts showing the cumulative cabinet experience by administration.  Trump’s is decidedly lopsided toward business and away from government experience.

 

December IceCap Global Outlook – The Ostrich

 

I enjoy reading the quarterly Global Outlook from IceCap, these guys are original thinkers and put a lot of thought into their analysis.  Well worth the read.

 

Mexico is Having a Yuuuuuuge Donald Trump Sale

 

Interesting play on Mexico.  This country rests squarely in Trump’s scope, but eventually the negative news and trade implications will be priced into MXN and Mexican stocks.  The hotel companies suggested may just be pretty solid investments.

 

R.I.P. Bond Bull Market as Charts Say Last Gasps Have Been Taken

 

I don’t necessarily recommend reading this article, just taking note of the tone.  It is widely accepted now that the bond bull market is dead and that a new trend of rising inflation started.  While these two beliefs may or may not be accurate, any market can adjust due to lopsided sentiment.  It seems logical to say that whoever wants to sell bonds around this general price level has done so already.  Although a token new low may very well be ahead, I think some sort of rally will follow.

 

 

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