The Newspaper of the Markets

November 18, 2018

I think of the financial markets as a sort of newspaper. Some days I read the SF Chronicle, others The Newspaper of the Markets.

The Newspaper of the Markets is less "curated" but vastly more factual than others. It takes more training to read, but has the benefit that it's updated continuously, and there's no editorial bias or journalistic mistakes. The Newspaper tends to be more forward-looking than other papers, but oddly enough it's usually right.

Here are some recent things I've read:

  • There's been a huge selloff in tech stocks; valuations got a little high, but the selloff is part fundamentals (facebook), part shifting opinions on growth.
  • On growth: the markets preceive a huge risk of damage from ongoing US-China trade tensions.
  • Many think interest rates are headed upward; the yield curve is approaching inversion.
  • Nobody's sure about urban real estate; people seem to think it's valuable but young people really can't afford it.

What I don't do: trade, move money, or panic based on any of this. That part is hard if you aren't used to the daily ebb and flow. I'm just starting to be able to sort out what's important versus what's not and I've been watching this stuff closely for 15-20 years.