Politics Trump Economics Redux

5+

Every morning, we run the Narrative Machine on the past 24 hours worth of financial media to find the most on-narrative (i.e. interconnected and central) stories in financial media. It’s not a list of best articles or articles we think are most interesting … often far from it. But for whatever reason these are articles that are representative of some chord that has been struck in Narrative-world. And whenever we think there’s a story behind the narrative connectivity of an article … we write about it. That’s The Zeitgeist. Our narrative analysis of the day’s financial media in bite-size form.

To receive a free full-text email of The Zeitgeist whenever we publish to the website, please sign up here. You’ll get two or three of these emails every week, and your email will not be shared with anyone. Ever.


We took the title of this Zeitgeist from a tagline we used to lead with on Epsilon Theory. And instead of giving you a single article today, we are going to include each of the top six without exception. I think you will quickly see why – on both counts.

Danish pensions to put $50 billion into green investments [Reuters]

Gender diversity pays off: A new Stanford study finds equitable hiring boosts companies’ stock prices [Business Insider]

Aluminium industry must commit to carbon reductions [Business Insider]

Daughter of Ebony founder resigns from spot on magazine’s board [Chicago Tribune]

At Amazon, workers push climate policy; Bezos sets net-zero carbon emission goals, but employees want more urgent action. [Vox]

General Motors Shares Extend Declines As Nationwide UAW Strike Hits Day Five [The Street]

Recall that the query we use for the daily Zeitgeist is constructed only from news that specifically refers to equity markets and stocks.

We have commented before that ESG specifically tends to follow the fortunes of the market. It usually becomes a cohesive, high attention narrative when times are good and investors feel confident. When markets decline and perceived risk rises, ESG issues tend to fade from investors’ attention. Independent of ESG investing as a topic in itself, however, the politics of climate, inequality and identity that we have shown to be dominant in electoral coverage are becoming similarly prominent in financial markets coverage.

As long-time readers will know, any time coverage of politics and markets intersect so plainly, we strongly recommend taking a step back to ask, “Why am I reading this now?”

5+

To receive a free full-text email of The Zeitgeist whenever we publish to the website, please sign up here. You'll get two or three of these emails every week, and your email will not be shared with anyone. Ever. It's our effort to spread the word about what we're doing, and allow you to read more Epsilon Theory!

4
Leave a Reply

Please Login to comment
  Subscribe  
newest oldest
Notify of
Peter Perez
Member
Peter Perez

ESG today = “Frontier” Markets of past tops/near tops. Love companies falling all over themselves in craven attempts to be labeled ESG for inclusion in such an index. If everything is ESG, nothing is ESG.

2+
Mark Nockleby
Member

There’s one headline that seems particularly ridiculous to me (although, gender diversity is fine and good). Oh gawd, am I really going to click on this headline… I click on the headline. I think, “In what kind of lab can you do experiments like that? Oh, the experiments are one dollar bets?”

really? really? one dollar bets like this one? https://www.youtube.com/watch?v=wjkdynBFHuQ

4+

The Daily Zeitgeist

The Common Knowledge of Inflation

By Ben Hunt | October 11, 2019 | 3 Comments

“Until an hour before the Devil fell, God thought him beautiful in Heaven.”

That’s my fave Arthur Miller quote, from The Crucible.

Our Devil is inflation, and today we think him beautiful in Heaven. You’re not ready for the Fall.

Read more

In Chinese, the Emphasis is on the Second Syllable

By Ben Hunt | October 9, 2019 | 4 Comments

Every US company with Chinese consumer-facing products is going to be forced to make a choice. Do you want to preserve your authenticity and your brand, or do you want to preserve your earnings guidance and share price?

Choose one. You can’t have both.

No one will believe me when I say this, but it’s the truth: this is bigger than tariffs.

Read more

Imagine That.

By Ben Hunt | October 7, 2019 | 6 Comments

They keep us sick, you know.

They keep us hooked on this framing of something-something Republicans vs. Democrats.

The cure? Take back your distance.

You’ll find your local library to be the perfect place to start.

Read more

Fear Factor

By Ben Hunt | October 4, 2019 | 3 Comments

Yeah, yeah … I know that the Deep State is a powerful adversary. Or at least that’s what my MAGA buddies on twitter keep shouting at me.

But I’ll take the Deep State as an enemy any day compared to Steve Schwarzman and the rest of the Private Equity Tong looking to keep their carried interest tax treatment.

I bet Elizabeth Warren feels the same way.

Read more

When the Product is Free, You’re the Product

By Ben Hunt | October 2, 2019 | 3 Comments

This isn’t a note about Facebook. It’s a note about online brokerage fees. And it’s a note about Facebook.

As a consumer … don’t cry for Argentina, and don’t cry for the online brokerages who are taking their commission fees down to zero. As an investor in or an employee of ANY financial services company, on the other hand … maybe it’s time for a good cry and a hard look at your future prospects.

“Yay, free!”

Read more

The Emerging Market Zeitgeist is Broken

By Ben Hunt | September 30, 2019 | 2 Comments

Yes, Deadwood is the greatest HBO series ever. Don’t @ me. I’m not having it. David Milch is MY President.

And while Al Swearengen is the greatest character of that greatest show, the fact is that it’s another character – George Hearst – who drives the narrative arc for the entire series (and movie).

You see, Deadwood is a show about property rights.

So is the Argentina – IMF show.

Read more

DISCLOSURES

This commentary is being provided to you as general information only and should not be taken as investment advice. The opinions expressed in these materials represent the personal views of the author(s). It is not investment research or a research recommendation, as it does not constitute substantive research or analysis. Any action that you take as a result of information contained in this document is ultimately your responsibility. Epsilon Theory will not accept liability for any loss or damage, including without limitation to any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Consult your investment advisor before making any investment decisions. It must be noted, that no one can accurately predict the future of the market with certainty or guarantee future investment performance. Past performance is not a guarantee of future results.

Statements in this communication are forward-looking statements. The forward-looking statements and other views expressed herein are as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and there is no guarantee that any predictions will come to pass. The views expressed herein are subject to change at any time, due to numerous market and other factors. Epsilon Theory disclaims any obligation to update publicly or revise any forward-looking statements or views expressed herein. This information is neither an offer to sell nor a solicitation of any offer to buy any securities. This commentary has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Epsilon Theory recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.