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A Eulogy for the 60/40 Portfolio (A Wealth of Common Sense) A tongue-in-cheek “obituary” piece to celebrate the life and recent death of the long-standing 60/40 investment strategy, declared obsolete by BAML recently. Despite it’s ever-healthy performance and simplicity, it’s now largely replaced by ETF trackers and rebalancing.
Corporate America’s Second War With the Rule of Law (Wired) In-depth historical perspective on whymore and more gig economy (and other) firms are opting to disobey the rule of law. Think Uber refusing the order to start formerly employing its drivers and Facebook misusing data. Predicts a looming “techlash” by public servants.
Optimists and Pessimists in the Housing Market (New York Fed) Extrapolation of beliefs or i.e. assuming that a rising asset price will continue rising can be a source of market bubbles. Analysis shows that optimists on future house prices extrapolate twice as much as the median household and artificially influence prices.