BlackRock's CEO Larry Fink likes to talk a big game on the company's efforts to expand "environmental, social and governance" (ESG) investing. But the company itself is not living up to the standards it demands of others. Primrose Riordan and Stefania Palma report in The Financial Times: BlackRock has been accused of inconsistency for supporting a shareholder protest against Procter & Gamble’s sourcing of palm oil from an Indonesian company in which BlackRock itself holds a significant stake. The world’s biggest investment group, which has made ambitious commitments to environmental, … [Read more...]
Archives for May 2021
Stocks: S&P 500 Hit 25 Records this Year
You may have noticed the food and beverage industry needs workers. Like, right now. You can expand that out to most businesses in the service industry. Your Survival Guy will place the blame on big government unemployment checks and on the lockdowns freaking people out. Case in point, we escaped to the city this weekend to meet friends, and when the sun went down, it turned into a ghost town. No taxis, no Uber, which is basically operating with on-and-off strikes. Why? Because the governor isn’t allowing them to charge higher prices when demand surges. According to him, the city’s still in a … [Read more...]
Lumber Prices Are Soaring, Should the Fed Be Afraid?
Lumber prices are breaking records. First position Spruce-Pine-Fir futures are trading at over $1500/metric ton. Perhaps the most frightening aspect of the spike in lumber prices is that builders have been able to pass them on to customers. The Fed should be very worried about the rapid rise in prices going directly to consumers. The central bank's policy of low interest rates for longer could buckle under the pressure if inflation heats up faster than expected. Ryan Dezember reports in The Wall Street Journal: The Fed last week recommitted to near-zero interest rates, which have … [Read more...]
Analyst: Current S&P Valuations Point to Zero Return for 10 Years
Karen Ward, a chief market strategist for JPMorgan Asset Management has taken to the Financial Times to warn investors that current S&P 500 valuations suggest returns of zero-percent for the next ten years. She writes: How worried should we be about stock market valuations? In my day-to-day conversations with clients, it seems that investors are unsure. On the one hand, they can see the US economy is bouncing back quickly, vaccines are being rolled out more rapidly in continental Europe and both governments and central banks are in no rush to rein in stimulus. For the global economy, … [Read more...]
Charlie Munger: Stupid States Drive Out the Rich
When he was asked at Berkshire Hathaway's recent shareholder meeting what he thinks about people leaving California because of taxes and a high cost of living, Charlie Munger, Berkshire's Vice Chairman told the audience that it was a mistake for state governments to lose residents to competition from other states. He continued “I do think it is stupid for states to drive out their wealthiest citizens. The old people don’t commit any crimes, they donate to the local charity. Who in the hell in their right mind would drive out the rich people? Florida and places like that are very shrewd, and … [Read more...]
WARNING: Near Record Confidence Among America’s Retirees
Confidence among workers about retirement is nearing record highs, with 72% confident they will be able to retire comfortably. That's close to the record set in 1993 when 74% of the workforce was confident in retirement. Anne Tergesen writes in The Wall Street Journal: About three-quarters of U.S. workers and retirees believe they will have enough money for retirement, an increase from a year ago, according to a survey released Thursday. The survey from the Employee Benefit Research Institute provides a snapshot of how Americans feel about their retirement prospects. Among workers, … [Read more...]
The Fed Is Dismissing the Evidence With Inflation Push
In The Financial Times, Mohamed El-Erian discusses the inflation dangers facing markets today and the Fed's strange response to the evidence before it. He writes (abridged): According to an old saw, the difference between lawyers and many other professions is that the former can argue with 100 per cent conviction even when the foundation for their view is uncertain or low. The US Federal Reserve these days seems to be acting more like a lawyer than an economist. Once again, it has set aside accumulating evidence about the strong economic recovery, dismissed financial stability concerns, … [Read more...]
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