A roundup of what The Globe and Mail's market strategist Scott Barlow is reading this morning on the Web
There is still much to be learned from Warren Buffett and Charlie Munger's wisdom, as the inks below attest, but the endless fawning at the annual meeting is still a bit nauseating.
In one of my favourite essays of the past decade - "The Wrong Lessons of Iraq" - a pseudonymous psychiatrist describes the psychological defence mechanism of splitting – believing everything people you like do is good by definition and everything someone you don't like does shows some kind of underlying evil.
Nuance and details are thrown aside and for investors, splitting can be fatal to portfolio returns in my opinion. Even the words of Mr. Buffett need to be assessed critically and I suspect he'd agree with that sentiment.
"THE HIGHLIGHTS: Warren Buffett talks about investing, technology, risks, and mistakes" – Business Insider
"Buffett Says His IBM Thesis Was Flawed, He Blew It on Google" – Bloomberg
"@mark_dow If he were starting again today, Warren Buffett wouldn't stand a chance of becoming Warren Buffett. #JustSayNoToHeroWorship " – Twitter
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I've been less worried about the housing market than many in recent weeks, but I never said there wasn't a bubble, or reason for concern. That position is indefensible when things like speed dating for mortgage buyers is happening,
"It sounds like an unorthodox concept: Meeting complete strangers to see if you're compatible to buy a house together. But as bizarre as it might sound, that's exactly what happened on the third floor of the Toronto bar the Pilot in Yorkville on Thursday night."
"Would you buy a house with a stranger? Toronto real estate speed dating a new option" – Global News
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Crude prices are steady this morning after Saudi Arabian and Russian officials announced support for extended production cuts,
"Futures were little changed after increasing 1.5 percent on Friday, following a decline to the weakest since November. Saudi Arabia's energy minister Khalid Al-Falih said in Kuala Lumpur that while the rebound in U.S. shale oil has slowed OPEC's efforts, the group will likely maintain output cuts this year and possibly into 2018. Russia's energy ministry said it supports the idea."
"Oil Steadies as Saudi Arabia, Russia Say Cuts May Last Into 2018" – Bloomberg
"Hedge Funds Bail Just Before OPEC-Driven Oil Rally Vanishes" – Bloomberg
"Brimming U.S. oil storage tanks to feel OPEC cuts last" – Reuters
"The Elusive Benefits of OPEC's Oil Output Plan" – GadFly
"Oil steadies after last week's heavy blow" – FastFT
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I follow the Citi economic surprise indexes closely, so a new report from Citi hit close to home,
"If the [surprise index ] wiggles one way or another, investors get signals to buy the yen or the euro or the loonie, etc. It was not meant to be used for stock prices or for Treasuries, but coincident rather than causal relationships are relied on even if they have no consistency whatsoever."
"Citi says it's best not to get carried away by Citi's Surprise Index" – FT Alphaville (no subscription required)
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Tweet of the day: "@tracyalloway When people talk about consumers spending more on 'experiences' as opposed to 'goods,' this is what they mean. Chart from Citi: " – (chart) Twitter
Bonus Tweet of the Day: "@katie_martin_fx What could be more reassuring than Putin commenting on your health? " – Twitter
Diversion: I'm in the middle of a social media hiatus – financial twitter has become a poisonous contest to see who can show the most withering contempt, no matter what the topic – and my store of diversion material is low. I've been watching a lot of Netflix so instead of the usual I'll offer a tv recommendation, AMC's Halt and Catch Fire.
Despite strong critical reviews I'd been avoiding the show because the premise, a group of people starting a computer company in 1983, didn't sound that exciting. As it turns out I love the show. Watching well-developed, believable characters (even if a couple of them are functioning psychopaths) surprise viewers in ways that are completely intelligible in hindsight underscores how rarely this happens in most shows.
"THE TEN BEST TV SHOWS OF 2016" – (Halt and catch Fire was rated #6) RogerEbert.com
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Scott Barlow