(Not) boring finds for September 2015
Our team comes across hundreds of weird and wonderful reads in our daily research. Below are the handful that stood out for us this month.
Not everything below is technically about investing—but everything relates back to investing or decision-making in some way.
This month, we found ourselves engrossed in reading about the relationship between loose monetary policy and income inequality. This was triggered by Janet Yellen’s remarks in a press conference which left us perplexed:
“Loose monetary policy puts people back to work and reduces income inequality.”
Frankly, we find it difficult to understand the Federal Reserve chairwoman’s logic around that statement. Although the jury’s still out on the long-run impacts of aggressive quantitative easing strategies, evidence seems to support the opposite view: very low interest rates have widened the gap between the richest and the poorest.
We expect the issue of global inequality to remain pronounced in forthcoming months. It would not surprise us if the political pendulum, which in the 1980s moved away from labour and towards freer market capitalism in western economies, swung back to models focusing on greater redistribution of wealth. Indeed, we are already seeing evidence of this growing sentiment in politics around the world.
This month also saw tensions around the flow of refugees continue to percolate and reach a boiling point in some areas. Europe’s migrant crisis represents the largest flow of refugees since World War II and has evolved into a major moral dilemma for the union. At the same time, a low but surprising number of Americans seem to be embracing anti-immigration policies such as building a massive wall on the border of Mexico. The anti-immigration sentiment points to a noticeable trend of nations regressing inwards instead of embracing more open international stances.
But there was at least one finding that did bring us great joy this month:
- It’s not supposed to be easy: Oaktree’s Howard Marks recent memo referencing Charlie Munger
- How Singapore’s People’s Action Party continued its 50 year reign
- Norway cuts rates to record low to save economy from oil slump
- Inside South America’s oil-fueled currency battle
- Google’s three tips for sabotaging the cybercrime economy
- Pope Francis’ full-speech to Congress
- Meet Daniel Carder, the engineer that discovered Volkswagen was duping U.S. emissions test
- A framework for handling objections and skepticism while presenting ideas