We have a bumper newsletter edition today. Our Deep Dive is a summary of a new academic paper looking at the relationship between demographics and wealth. We have rates guru, George Goncalves, give his take on the Fed. Then, given the social unrest in the US, we have two articles on the theme. One is my personal take on whose lives matter and the other is by Thorsten Wegener on a trading view on diversity in the workforce.
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(total reading time: 2 mins)
We have a bumper newsletter edition today. Our Deep Dive is a summary of a new academic paper looking at the relationship between demographics and wealth. We have rates guru, George Goncalves, give his take on the Fed. Then, given the social unrest in the US, we have two articles on the theme. One is my personal take on whose lives matter and the other is by Thorsten Wegener, who looks at diversity in the workforce through a trader’s lense.
Enjoy!
Bilal
Demographics Driving Wealth Accumulation (3 min read) Demographics are a key driver of long-term macro trends. The link between changing demographics and wealth has significant implications for asset markets given stark differences in ageing across countries. In this Deep Dive, we review a joint paper recently published by Stanford, Northwestern, and Minnesota which looks at age distribution and behavioural shifts to determine the impact on wealth-to-GDP ratios across countries…
( Stefan Posea │ 10th June, 2020)
FOMC Preview: Aiming For Neutral Might Be Hawkish Amidst Bull Markets (5 min read) If this were any other period (or more like any other dimension), Fed Chair Powell should express some concerns over the growing speculation that has now spread to all of the corners in the market. But given the economic outlook’s fragility, we highly doubt he will do so. That said, there is a risk that a market hooked on easy money can still get disappointed if there are no promises of new liquidity ahead…
(George Goncalves │ 10th June, 2020)
Whose Lives Matter (2 min read) Yellow people. Red people. Black people. Brown people. White people. In theory, we believe everyone’s lives matter equally. In practice, we know that society falls short. I like to think in terms of the philosopher John Rawls’ veil of ignorance. How would you want society to be structured if you didn’t know who you would end being in that society?
(Bilal Hafeez │ 10th June, 2020)
Diversity Is Strength, A Trader’s Proof (6 min read) I typically refrain from dipping into the vast array of human resources topics when I can. However, the more prevalent that phrases like ‘sorry, we have to let you go’ became in my social circle, the more I started wondering why, even in pre COVID-19 days, more people seemed to get the sack when times were tough compared with the equally miserable periods we used to experience on occasion in the good old days.
(Thorsten Wegener│ 10th June, 2020)
(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)