Must Reads of the Week – December 12, 2018

Must Reads of the Week

Our favorite reads of the week and the quotes that make them worthy…

“Building a diversified portfolio is a classic way to manage the risk associated with any individual asset class—something that is all the more critical now, as there seem to be more risks tied to nearly every class. The options stretch all the way from the classic—cash and gold—to new alternatives that are becoming more accessible to individuals.”
Where to Put Your Money in 2019 by Suzanne McGee | The Wall Street Journal

“Instead, investors should keep an eye on a different inversion: the difference between the earnings yield on stocks and the yield on cash. When the earnings yield has dipped below the cash yield in the past, stocks were in for a rough ride.
This Is the Inversion Stock Investors Should Sweat by Nir Kaissar | Bloomberg

“There are no books that teach you how to solve a problem no one has seen before. This is why I don’t want my kids to learn syntax. I want them to learn to solve problems, to dive deep into an issue, to be creative.
I’m a Developer. I Won’t Teach My Kids to Code, and Neither Should You. by Joe Morgan | Slate

“But the fact that young people are buying fewer houses and cars doesn’t prove that they want fewer houses and cars. It might mean they simply can’t afford them. That latter conclusion is now supported by research from the Federal Reserve.”
Millennials Didn’t Kill the Economy. The Economy Killed Millennials. by Derek Thompson | The Atlantic

“It’s unthinkable to ask tens of millions of Americans to write a check to the Treasury every year for a fifth of their income. But once you made even higher taxes out of sight, out of mind, it’s no sweat. An underreported story of the 1940s is that one of the biggest tax increases in history went down without as much fuss as you might expect.”
Drip, Drip, Drip by Morgan Housel | Collaborative Fund Blog

“In his book, he [Ed Catmull] calls early ideas “ugly babies” and stresses the need to protect them from being judged too quickly. Yet most organizations do just the opposite. Any idea that doesn’t show immediate promise is typically killed quickly and without remorse.”
Set the Conditions for Anyone on Your Team to Be Creative by Greg Satell | Harvard Business Review

“Does the recent flattening of the yield curve portend recession? Not necessarily. The flattening of the real yield curve may simply reflect the fact that real consumption growth is not expected to accelerate or decelerate from the present growth rate of about 1 percent year over year.”
Does the Yield Curve Really Forecast Recession? by David Andolfatto and Andrew Spewak | Federal Reserve Bank of St. Louis

“Our tendency to see skill where there is just luck causes the successful to have an exaggerated sense of entitlement and the rest of us to be overly deferential to them. Very few people are luck egalitarians.” 
Blind to Luck | Stumbling and Mumbling Blog

“In one recent survey, Japan was ranked the least attractive place to work in Asia. As countries from Taiwan to South Korea to Singapore — and even China — look abroad for labor, Japan needs to change its thinking.”
Japan Needs to Change its Attitude to Foreigners by Editorial Board | Bloomberg