Wednesday morning articles
Is the Stock Market Gaslighting Us? A downturn in the market doesn’t always precede a downturn in the economy. Yes, the stock market is forward-looking, but sometimes it sees things that aren’t there. At its low, the S&P 500 was 25% below its high. It’s hard to completely dismiss this as a leading indicator and I’m not here to do that, but while most drawdowns of this magnitude have led to economic contractions, they haven’t always. (Irrelevant Investor)
In the Markets Nothing is as Dependable as Cycles: Nothing is more dependable than cycles because market psychology, fundamentals, risk appetite and investor emotions are constantly changing. Strategies, asset classes and securities go in and out of style in part because the pendulum always swings back and forth between fear and greed but also because the future is unknowable. (A Wealth of Common Sense)
Why Stock Multiples Say the Market Could Continue to Drop: History suggests the stock market’s current bottom would be `the most expensive bear-market low.’ (Morningstar)
Fed Seen Aggressively Hiking to 5%, Triggering Global Recession: Survey of economists sees 75 basis-point hike, then slowing Three-quarters say the Fed will err by doing too much. (Bloomberg)
Revenge of the Dow: Change is the only constant variable in the market. Startups mature. Incumbents become complacent. Markets get saturated. And so turnover at the top is inevitable. It’s only a matter of time before the king loses his crown. (Irrelevant Investor)
Food Prices Soar, and So Do Companies’ Profits: Some companies and restaurants have continued to raise prices on consumers even after their own inflation-related costs have been covered. (New York Times)
New-Car Prices Are Starting to Cool After Years of Soaring to New Records: Inventory on dealer lots is ticking up again, but executives say pent-up demand should keep prices elevated for the foreseeable future. (Wall Street Journal)
Welcome to hell, Elon: You break it, you buy it. The problems with Twitter are not engineering problems. They are political problems. Twitter, the company, makes very little interesting technology; the tech stack is not the valuable asset. The asset is the user base: hopelessly addicted politicians, reporters, celebrities, and other people who should know better but keep posting anyway. (The Verge)
What Moneyball-for-Everything Has Done to American Culture: You can make a thing so perfect that it’s ruined. (The Atlantic)
The Home-Improvement Boom Isn’t Over Yet: The housing market has turned from hot to freezing cold, but spending on home renovation appears well insulated for now. (Wall Street Journal)
The Front Trunk Is Electric Cars’ Most Divisive Feature: The “frunk” that comes standard with most electric vehicles is proving the best kind of marketing engine: one that runs on its own. (Green)
How Twitter Will Change as a Private Company: The social media company went public in 2013. But Elon Musk is taking it private as part of his acquisition of the firm. Here’s what that means. (New York Times)
It’s a Bad Time to Be a Booster Slacker: Americans aren’t getting the new bivalent COVID shot. What does that mean for the looming winter wave? (The Atlantic)
“Thank You, and Goodbye” On October 30, 2002, a cancer-stricken Warren Zevon returned to the ‘Late Show With David Letterman’ stage for one last performance. Twenty years later, Letterman and more remember the gravitas and emotion of that stunning night. (The Ringer)