Scott Barlow
A roundup of what The Globe and Mail's market strategist Scott Barlow is reading today on the Web
Philosophically, I think government intervention in the economy will be necessary in the decades ahead. We're in a period similar to that surrounding the great depression – then there was a momentous shift from agriculture to manufacturing – where technology like robotics and artificial intelligence will reshape the economy.
The problem is that if our governmental system spends $65,000 to build five stairs (story link below) – that's not a typo and $13,000 per stair – reasonable Canadians have every right to doubt government's ability to intervene effectively.
My point would have been a lot stronger if Adi Astl's attempt to build stairs himself didn't result in dangerous trash, but otherwise we never would have heard about any of this. I'm not against fiscal spending – I'm against dumb spending.
"Who's complacent? (arbitrage for Ontario)" – Marginal Revolution
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A great piece at Farnam Street blog emphasizes that successful investing is a lonely business,
"Extraordinary performance comes from being different. It must be that way… You can't do the same things that other people are doing and expect to outperform. When you do what everyone else does you're going to get the same results everyone else gets. It's not enough to be different – you also need to be correct. The goal is not blind divergence but rather a way of thinking that sets you apart from others. A way of thinking that gives you an advantage…The ability to risk looking like an idiot is necessary for being different. You never look like a fool if you look like everyone else."
"Second-Order Thinking: What Smart People Use to Outperform" – Farnam Street
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The Financial Times published another 'five charts that matter most' column. It was the fourth chart – S&P 500 performance versus that size of central bank balance sheet's that got my attention,
"@SBarlow_ROB From FT's '5 charts that matter', SPX vs CB balance sheets ft.com/content/c4de73… ' – (chart) Twitter
Related: "Investors Underestimate Fed Unwind Risk, UBP's Villamin Says" – Bloomberg
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The oil price had a decent week as OPEC sets to meet next week. Compliance with OPEC production cuts has been an issue lately, however,
"Oil Declines as OPEC's Supply Is Seen at Highest Level This Year" – Bloomberg
"Oil Producers Don't Have a Plan to End the Glut" – Bloomberg
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Tweet of the Day: "@Noahpinion American teens are more stressed and depressed than ever, and many think social media is the culprit: time.com/4547322/americ…" – Twitter
Diversion: "Is Addiction a Brain Disease or a Moral Failing? A: Neither." – U.S. National Library of Medicine
Scott Barlow