Something Has to Give !?

This graph/chart from the Economist really blew my mind and got me thinking:

Hedge fund returns blow, the industry is full of thieves and yet money piles in.

The global liquidity, lack of institutional trust and boom in software technology has created an even bigger boom in ROBO and passive investing in ETF’s.

Something has to give!?

I have spent the week out east and yesterday took Rachel to see Babson College outside of Boston. It was NYU before that.

Rachel loves school and learning so we feel it is important that she gets to go to a school that will motivate her to excel even further.

Luckily, I think, we can afford to have Rachel go to the college of her choice, but the prices are still staggering.

Something has to give!?

In the financial markets, breadth is bad and I mentioned in my last post here. Take a look at something the S&P has not done in 20 years. The market of stocks has been fun for sure, but the angle of ascent and law of large numbers for the consumer stocks like Disney, Nike, Underarmor, Netflix is unsustainable.

Something has to give!?

I can’t explain all the weird, bad, good and magical things happening in the markets right now.

Because of the ‘gig/sharing’ economy and smartphones we don’t go to casinos like we once did or buy as much ‘stuff’ as we once did. I do know from the prices I am seeing in stocks that we eat out, invest our savings in almost anything but cash and overpay for college.

It’s been a fabulous trend for those riding it, but something will give.

I know I won’t catch the exact moment when these trends change but I am focused on not being the idiot turning out the lights.

One comment

  1. brian_in_arizona says:

    Good points. We know that the wheels are going to come off somewhere sometime. But just where and when, we don’t know. And we don’t know what the response in Washington will be. I fear that even more than the “le deluge”. Doubling down on the policies that got us there is the most likely response.

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