A roundup of what The Globe and Mail's market strategist Scott Barlow is reading today on the Web
Famed financial academic William Sharpe described the process of saving for retirement and spending when retired as "the nastiest problem in finance."
For Mr. Sharpe, the general rules for the process are based on averages that are misleading to the point of myth,
"The use of savings in retirement is [Mr. Sharpe] says, 'the nastiest, hardest problem in finance' … Many financial planners use a simple rule of thumb: withdraw 4 percent a year from your savings until you either die or run out of money. This one-size-fits-all solution is suboptimal for a reality where the potential outcomes are almost infinite, or as Sharpe describes it, a 'multiperiod problem with actuarial issues, in a multidimensional scenario matrix.'"
The column is worth reading in it's entirely.
"Tackling the 'Nastiest, Hardest Problem in Finance'" – Bloomberg
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An interesting report from research firm Bernstein describes the attributes that make a stock a good short opportunity, and cites stocks that qualify.
The three characteristics are industries that are structurally challenged, uncompetitive business models (Best Buy was mentioned here) and stocks that are 'priced for perfection'. Stocks listed as short candidates include Rolls Royce, Kellogg, Rémy Cointreau and Lloyds.
"Three reasons to short a stock" – (research excerpt) Twitter
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One of the reasons for Middle East political discord is, according to the Financial Times, a $1-billion payment to a terrorist organization that kidnapped members of the Qatari royal family.
"The $1bn hostage deal that enraged Qatar's Gulf rivals" – Financial Times
"Oil slips on worries Mideast rift could undermine OPEC cuts" – Reuters
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The gold price is testing 2017 highs, in part as a result of an expected surge in demand from China,
"Havens Rally as Risk Events Stack Up; Oil Swings: Markets Wrap" – Bloomberg
"China's Gold Imports Seen Jumping 50% as Haven Demand Booms" – Bloomberg
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Tweet of the day: "@tracyalloway Equities as the last reflation trade standing. Goldman: " – (chart) Twitter
Diversion: "Hilary Mantel: why I became a historical novelist" – Guardian
Scott Barlow