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 sort of chord that has been struck in Narrative-world.
We thought we’d post the underlying Narrative Maps for the Zeitgeist today. Let us know if you find this feature a) interesting or b) distracting !
April 5, 2019 Narrative Map – US Equities
April 5, 2019 Narrative Map – Selected Articles
Schwab pitching preferreds today. And every day. Just another example of an advertisement presented as “analysis” … the ubiquitous commercial version of Fiat News.
Two observations …
- When I was running a hedge fund, whenever I read a sell-side report that said a security was “still attractive for long-term investors”, I would immediately get a borrow and short the hell out of it.
- Fannie Mae preferreds. Never forget. Although everyone has.
Target Raises Its Minimum Wage to $13 an Hour [The Street]
March wage growth came in at 3.2% today, which is being described by everyone in financial media as “muted”.
Kinda like the Disney flacks telling us that Blue Will Smith is “fine”. A different genie, but still.
As the immortal line in The Outlaw Josey Wales would have it, “Don’t piss down my back and tell me it’s raining.”
As volatility continues? What the hell are you talking about?
Oh, I see … it’s the Natixis report on 2018 “trends”, pushed on BusinessWire (A Berkshire Hathaway Company ™) in April 2019.
It’s a variation on The Prediction Polka, a great little note that Rusty wrote in December.
As the legendary money manager Peter Lynch used to say, “If you spend more than 13 minutes analyzing economic and market forecasts, you’ve wasted ten minutes.” No one can predict the economy, the markets, or the direction of currencies. Only a charlatan would pretend to. Yet if you click on your financial news most days, that’s all anyone is trying to do. Pundits rarely invoke the wisdom of Socrates: “I know that I know nothing.”
Author then proceeds to compare the earnings yield of Emerging Markets ™ with the earnings yield of The Dow ™ and calls this Value ™.
You know, just like Peter Lynch used to do. Gag.
CalPERS not alone on private equity shift; A growing list of investors act to enhance returns, lower fees [P&I]
If you’ve been reading Epsilon Theory for more than a nano-second, you know what we think about this … greater allocations to private equity isn’t stupid, it’s NECESSARY as all capital markets (including private capital markets) become public utilities.
Global Stocks Edge Up as Trump Signals Trade Progress [Morningstar]
I just can’t write another blurb about the China Trade narrative. Just can’t do it.