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Molecular Genetics, Risk Aversion, Return Perceptions and Stock Market Participation (NBER, 39 page read) Paper suggests that genetic endowments are shown to predict market participation, risk aversion and beliefs about the distribution of equity returns.
Life Cycle Cash Flows of Ventures (NBER, 29 page read) Paper finds that venture capital returns have fallen since 1999 after National Securities Markets Improvement Act was passed. This allowed more investors to access the venture market. [Bearish VC]
To What Extent Are Tariffs Offset By Exchange Rates? (NBER, 15 page read) paper finds that tariffs explained two-third of CNY weakness over 2018-2019 [watch tariffs for CNY]
The Flying V-Shaped Recoveries (A Wealth Of Common Sense, 2 min read) The average stock market round trip from major peak to trough to peak has been 26 months since the 1920s. This time it has taken six months – the second fastest in history (1932-33 was fastest) [Bullish equities]
Does Bonus Cap Curb Risk Taking? (BoE, 18 page read) Capping bonuses can curb risk-taking, but it depends on the structure of performance-related pay. Bonuses linked to relative performance (to peers) increased an individuals’ risk-taking. In the absence of relative performance pay, constraints on bonuses and malus reduced risk-taking.