10 Thursday AM Reads
My morning reads: • Investors look to shelter portfolios from rising AI concentration risks: Fund managers see hedge funds and emerging markets assets as bulwarks against sudden shift in sentiment on artificial intelligence (Financial Times) • Exponential Wealth: Centuries of Stock and Bond Returns: Fifty years after the original SBBI, Roger Ibbotson and Larry Siegel assemble… Read More The post…
Investors are seeking to shield their portfolios from potential risks associated with the increasing concentration of artificial intelligence (AI) in financial markets. Fund managers are considering hedge funds and emerging market assets as potential safeguards against sudden changes in sentiment towards AI.
A comprehensive study of long-term returns on stocks and bonds titled "Exponential Wealth" has been published by Roger Ibbotson and Larry Siegel. The analysis reveals that a single US dollar invested in stocks at the end of 1925 would have grown to $14,751, adjusted for inflation to $814. The research also explores various bubbles, booms, and crashes in stock markets, dating back to 1792.
An alternative database of US stocks, covering the period from 1866 to 1926, has been compiled by Baltussen, van Vliet, and van Vliet. The study examines the relationship between beta and returns, finding that value, momentum, low-risk, and seasonality premia have proven consistent over time. In contrast, size and reversal strategies have shown weaker performance.
Interest rates have been rising in tandem with inflation and government deficits under the Trump administration. Steve Rattner notes that the 30-year Treasury yield has increased by nearly three-quarters of a percentage point since Trump's return to office, reaching its highest level since 2002. The Federal Reserve does not directly set long-term interest rates; rather, market expectations surrounding inflation and federal debt appear to be driving these changes.
Laser weapons technology, once confined to science fiction, is now being utilized as an anti-drone defense mechanism. The development of laser-based weapons has progressed significantly since the initial US shootdown of a drone aircraft using a laser in 1973. Recent advancements have brought this futuristic technology closer to practical implementation.
California's efforts to close a loophole related to license plate recognition have proven successful. The state has implemented measures to make it more challenging for individuals to evade taxes by manipulating their vehicle's license plates. This development represents a significant step towards curbing automotive tax evasion in the region.
The Israeli Prime Minister, Netanyahu, faces a significant challenge as he seeks reëlection. In an attempt to silence his opponents and avoid accountability for the security crisis of October 7th, Netanyahu has employed various tactics to discredit them and deflect blame from himself. This situation highlights the ongoing political turmoil in Israel and Netanyahu's efforts to maintain power.
Written by urgent.news from The Big Picture's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
