Weekly Snapshot: 06/25/2017

MSCI includes Chinese stocks in its global index

  • Reuters on China’s poor corporate governance: China ranks ninth out of 11 Asian economies for corporate governance, according to the ACGA. Its overall scores have declined since 2014.
  • FT on the market’s reaction to the decision: “MSCI’s move means mainland equities, known as A-shares, will next year be included in its flagship emerging markets index, obliging the estimated $1.6tn of investment funds that track the index to buy the stocks.”
  • Fortune on the stocks included: “In total, those 222 companies are worth $3.8 trillion in combined market value, but will account for a mere 0.7% of the MSCI’s emerging market index.”

Argentina floats surprise 100-year bond

  • Reuters on the offering: Argentina sold $2.75 billion of a hotly demanded 100-year bond in U.S. dollars on Monday, just over a year after emerging from its latest default, according to the government.
  • The Economist on the offering: “It is unusual for equity investors to be more circumspect than bond buyers. But they have a point. At times over the past 100 years, Argentina has shown that it can reform itself, reverse itself, and reverse those reversals.”
  • A critical view: “But this scenario depends on a big “if” – namely, that monetary conditions stay ultra loose. If you peer into the weeds of the global financial jungle, there are some reasons to question that assumption.”

U.S. downs Syrian government jet

  • Washington Post: “The rare attack was the first time a U.S. jet has shot down a manned hostile aircraft in more than a decade, and it signaled the United States’ sharply intensifying role in Syria’s war.”
  • Two days later downing an Iranian drone: “The episode, over southeast Syria, was a fresh indication that the air war between forces supporting President Bashar al-Assad of Syria and the American military is likely to continue, and perhaps escalate, even though the United States has sought to keep its focus on defeating the Islamic State militants operating in Syria and Iraq.”
  • Vox on the escalation: “All of this makes it appear like the US is fighting two different wars in the same country: taking on Assad-plus-Russia and ISIS at the same time. And that’s a problem.”

Miscellaneous

  • Bancor completes largest ever crowdfunding, $144m ICO: “Additional problems, such as front-running, potential reentrancy issues, poor code quality, lack of testing and the general unnecessity of inventing a new currency, give us pause.”
  • Exponent podcast on Amazon/Wholefoods: “Networks are the new monopolies. They are impenetrable and when you combine them they are all consuming.”
  • Warren Buffet takes 39% stake in Home Capital: “The stock plunged below $10 a share for several weeks after customers started withdrawing their deposits from deposit accounts that Home Capital uses to fund its mortgage lending.”
  • A reflection on Steve Jobs visit to Xerox PARC: One of Steve’s ways to feel in control was to object to things that were actually OK, and he did this a few times — but in each case Dan and Larry were able to make the changes to meet the objections on the fly because Smalltalk was not only the most advanced programming language of its time, it was also live at every level, and no change required more than 1/4 second to take effect.
  • Animated video of Munger’s Psychology of Human Misjudgement: “When I saw this patterned irrationality, which was so extreme, and I had no theory or anything to deal with it, but I could see that it was extreme, and I could see that it was patterned, I just started to create my own system of psychology, partly by casual reading, but largely from personal experience, and I used that pattern to help me get through life.”
Advertisements

Author: David Shahrestani

"I have the strength of a bear, that has the strength of TWO bears."

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s