Weekend Reads for Global Investors: Fintech Bulls and Market Bears

Inside the market, the news flow was not especially cheerful this week. After years on hiatus, George Soros seems poised for a comeback to the market. He apparently smells trouble, and it’s tried and true that you can make (or lose) money much faster in a bear market.

Compared to the venerable Warren Buffett, who is beloved by the investment community and the press, Soros tends to generate controversy with his every move. Josh Brown at The Reformed Broker put out a note cautioning readers against getting too excited.

I think a truly rational investor should evaluate all relevant information according to the same set of objective criteria. But, of course, where do you find these truly rational investors? I know I am not one. And I wonder why Soros is sharing his views with us. Reflexivity at work, perhaps?

On a more somber note, we would like to take a moment to honor the victims of the awful tragedy in Orlando, Florida, on 12 June 2016. Obviously, such senseless horror, perhaps the deadliest mass shooting in US history, cannot be explained by the rational economic theory we live by. Joan Cook, a professor at Yale, tried to make sense of what motivates such unfathomable cruelty by exploring the psychology of hate. We probably all spend much more time thinking about love. Hate, unfortunately, seems to be much tougher to understand and often leads to violence. And once someone starts down the path of hate, there are no easy escape routes. What the world needs is more tolerance. And that will take considerable effort from all of us.

There is no silver lining to this story. Though it was heartening to read that GoFundMe, a crowdfunding site, raised over $2 million for victims’ families this week. Of course, amid such great tragedy, that provides small comfort.

The Week

• “A Bearish George Soros Is Trading Again.” I am listening. (Wall Street Journal)
• “What You’re Not Hearing about George Soros Today,” It takes two to trade, so an opposing opinion is always in need and, alas, always supplied. My money is on listening to Soros with the caveats mentioned here. In a way, Soros’s comment is new information and Brown’s warnings are what “enterprising investors” should always bear in mind. (The Reformed Broker)
• “The Psychology of Hate” (Time)
• “Are You in Despair? That’s Good” (The New York Times）
• “GoFundMe Campaign for Orlando Shooting Victims Hits $2.4 Million” (CNN Money)

Investing

• “Mutual Fund Born during Great Depression Proves the Value of Buy-and-Hold.” The ultimate investment strategy. Just don’t market it as such because sooner or later your boss and your investors are going to feel that they no longer need you . . . (Investment News)
• Successful fintech start-ups in emerging markets are not simple replicas of their proven Western counterparts.”The Fintech World beyond Silicon Valley and Europe: Emerging Market Contenders” (TechCrunch)
• “What Investors Want from Venture Capital Firms” (TechCrunch)
• We are all human, including angel investors. “Five Rules for Building a Great Relationship with an Angel Investor” (Fortune)

The Soft Side of Business

• Running a business is never just about making money: “Companies That Put Purpose Ahead of Short-Term Profits” (Harvard Business Review)
• “The Nuances of Negotiating.” (Observer)
• “Are You an Ambivert? Here’s How to Harness That Power in the Workplace.” (The Telegraph)
• “An Apple Exec Interviews Job Candidates Based on Three Basic Personality Questions” (Business Insider)

Emerging Markets

• “Globalization’s True Believers Are Having Second Thoughts” (Time)
• “Year’s First Trillion-Dollar Bull Market Is Nearing in India” (Bloomberg)
• “Weak China Economic Data Signal Q2 GDP Growth Below Expectations” (Shanghai Daily)
• “Have Emerging Markets Stopped Submerging?” (Forbes)

And Now for Some Reading Truly for Weekend . . .

• “John Oliver Invests Time in Your Retirement on Last Week Tonight” (Time)
• I knew we add value. I just wanted to be sure. “Why Babies Need Dads Too” (Psychology Today)

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All posts are the opinion of the author. As such, they should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute or the author’s employer.

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