Below are some of the most interesting things I came across this week. Click here to subscribe to our free weekly newsletter and get this post delivered to your inbox each Saturday morning.
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Edward Chancellor writes, “The economist Hyman Minsky applied the term ‘Ponzi finance’ to businesses that do not generate sufficient cash flows to meet their outgoings. Loss-making data centre operators and AI
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Meanwhile, Bob Elliott argues, “Many folks forget just how much the markets and economy have been helped by fiscal and monetary stimulus over the last couple years. That is now reversing just at a time when expectations for the future are at their highest.”
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Turning to the bond market, Simon White notes, “Treasuries are set to keep falling out of favour as an equity hedge in 60/40 portfolios amid a return to a persistently elevated inflation regime.”
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In a similar vein, Jason Trennert writes, “Interest rates are likely to be higher for longer than many have to come to expect. Unfortunately, all financial assets are likely to provide lower investment returns in such an environment. Individuals and institutions will finally be able to achieve safer returns from asset classes other than public and private equities.”
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Finally, Matt Alt and David Schonthal share, “The Japanese have a word for people who excel at their chosen craft: shokunin. It is often translated as ‘craftsperson,’ but what it really embodies is a quiet competence borne from mastering generations of experience, joined to a sense of pride and a dash of gratitude, both to those who came before and to the materials and people that make the work possible… To a shokunin, the question is not ‘what can we automate?’ It is ‘what must we never automate?'”
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