📑 Research Notes for 2021-11-15
This week, we look at Fed tightening concerns, cash as an asset class, Evergrande contagion possibilities, and the growing wealth gap in America.
We conduct extensive investment research and share the most interesting content that we come across every week. Here is a curated list of this week’s top observations.
Do not reply to this email with any service requests, contact us for support if needed.
Persistent Inflation, Fed Tightening Now Top-Cited Financial Stability Concern.
(Yahoo Finance)
The concern: that the Fed may be too slow to respond to inflationary pressures, forcing the central bank to abruptly hit the brakes on its easy-money policies. Doing so could create financial market turmoil as highly-valued risk assets reprice.
Cash is a Low-Yielding Asset but has Other Virtues.
(The Economist)
Cash is a safe asset, but a wasting one. The real returns on risky assets have been much greater. True, cash affords options—to buy cheaply when others are selling. But episodes of distressed selling have been fleeting, largely thanks to central banks, which have been liberal in supplying cash in emergencies. Why then should investors incur the opportunity cost of holding it?
The Federal Reserve Warns About Evergrande Contagion.
(Patrick Boyle)
The Fed’s stability report, which is meant to highlight risks that could undermine the financial system, said that “stresses in China could strain global financial markets through a deterioration of risk sentiment, pose risks to global economic growth, and affect the United States.”
The Real Reason the Economy Might Collapse.
(Robert Reich)
The wealthy now own more of the economy than at any time since the 1920s. Meanwhile, millions in this country are barely scraping by. Closing our staggering wealth gap isn’t just the right thing to do. It’s essential to save our economy from collapse.
Curated by Joseph Lu, CFA®
Joseph has over a decade of experience as an investment professional, primarily in quantitative analysis and portfolio management roles. He is the founder and managing director of Conscious Capital Advisors and a CFA® Charterholder. The CFA charter is a globally respected, graduate-level investment credential by the CFA Institute, a global association of more than 90,000 investment professionals working in over 133 countries.
🔗 Connect with us on LinkedIn, Facebook, or Twitter.
Have a question about what we shared? Email us at info@consciouscapital.pro.
Do not reply to this email with any service requests, contact us for support if needed.
The information presented in this newsletter is for educational purposes only and is not a solicitation or recommendation for any specific security, product, service, or investment strategy.
Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to consult with a qualified financial advisor, tax professional, or attorney before implementing any strategy or recommendation you may read here.