In what is being termed as "this is not QE", the Federal reserve will soon start expanding its balance sheet again, in a manner to be specified later.
Shoring up the bank reserves has become a priority after last months spikes in overnight lending rates. On the topic of banks, we think there will be further rate cuts this year, whether warranted or not, and this puts banks' future earnings under pressure. Financials were Buffett's go to sector a little while ago. I think the best prices in financial equities are still to come.
On to these nuggets from my feed reader ...
The American Farmer in Crisis
Beth Ford, CEO of Land'O Lakes discusses how the American farmers are suffering today. Trade war has taken its toll and the Trump bailout for the farmers is far from enough.
Are environmental, social and governance (ESG) investing returns higher or lower than similar investments? The CFA Institute reviews the current findings and wants to hear your perspective.
Personally one would think that investors would consider paying a premium for the returns for ESG investments. This indicates a lower return on ESG then comparable investments. But in the era of algo driven and robotic investments, this would be arbitraged away.
So I expect there to be not much of a difference.
Children Now Average $30/Week in Allowance
Allowances were for the rich when I was growing up in India. $30/week seems to be a nice average allowance for a kid. I suppose with $0 brokerage commissions, kids now have the opportunity to be the next Buffett on the cheap.
This is all for today. Stay tuned for the next installment tomorrow.