The Stock Got Crushed. Then the ETFs Had to Sell.
by Jason Zweig | The Wall Street Journal
“The story behind these events is far from an indictment of indexing. It’s a reminder, first, of how diversification protects against unexpected market moves. It also offers a warning of how important it is for index-fund investors to understand what they own.”
How Amazon Escapes Liability for the Riskiest
Products on its Site
by Colin Lecher | The Verge
“Throughout the cases, Amazon has taken advantage of its unusual legal status as half-platform, half-store. If Home Depot sells a defective bandsaw, the store can be sued alongside the company that made the product. That liability means conventional retailers have to be careful about the products they stock, making sure every item on store shelves has passed at least the most basic product safety requirements.”
High-Yield Was Oxy. Private Credit Is Fentanyl.
by Daniel Rasmussen & Greg Obenshain |
“This analysis suggests that private credit isn’t actually lower-risk than risky debt — that the low reported default rates might promote phony happiness. And there are few things more dangerous in lending than underestimating default risk.”
The iPhone Isn’t Made in China—It’s
by Fred P. Hochberg | The Wall Street Journal
“The iPhone may be calculated as a Chinese import, but most of the money that Americans spend on them doesn’t travel far from home. And this is just one of many possible examples showing how America’s trade deficit with China is artificially and substantially inflated, simply because China often happens to be the last stop in a given product’s long global supply chain.”
Fighting U.S. FOMO
by Nathan Faber | Newfound Research
“Home country bias is a documented phenomenon that most investors battle, and it can pay off handsomely in years when your home country does well. If that was your experience in the equity markets in 2019, that’s great. Just know that subsequent years may not be so rosy. And if you missed out on gains in the U.S. equity market, you are not alone, and your portfolio may already be positioned to capitalize on global economic growth.”