Hello
We start with Jim Thorne’s feature article in The Globe and Mail, and he has been so good during this credit cycling time.
Another update on the real estate market from Steve Saretsky and I am glad he deals with the high tax system we have on housing. “So long as we continue to tax housing like cigarettes we should not expect much to change. Hopefully, we figure this out soon or this housing crisis will persist, leaving most of society worse off.”
John Dowd was the guest in Smarter Markets, and he made some interesting comments saying there is so much ‘cognitive dissonance’ with the energy transition story as people forget about how much mining needs to happen. He also mentions that Goldman had a report, and the most overweight investments were clean energy in ESG funds and the most underweight was mining. Things are changing in other aspects; as at a recent BMO mining conference, 15 auto companies attended whereas only one attended the previous time. There are challenges to get capital out of Wall Street he says, and the Auto Industry will be needing to set up he says.
The team at Doomberg are brilliant and they had a commentary on how they say the Russian sanctions do not work. A subject that they have been echoing for some time and they wished others would listen.
Fareed Zakaria explains what three things are helping the economy in India. I will have more on India in the coming months.
92-year-old Warren Buffett was featured in the WSJ, and he explains the reasons why he is big in oil.
Midlife crisis is a term used all the time, and I thought I would send a great piece that was done years ago by Jonathan Rauch. Good one to read and share with those that really need to read it.
The Netflix movie on Michael J Fox comes out next weekend, and yes there is a reason I highlight Michael a lot. We were both born in the same hospital in Edmonton less than a year apart….same height, but not the same net worth…..and when Family Ties premiered on NBC the first night in 1982, my good friend called me and said “Schneids, you are on TV” (true story). I am looking forward to the film and what he has done for Parkinson’s Research is amazing.
I had to close off with some links about Gordon Lightfoot. I included my favorite song, a great Globe and Mail article on his life, and Mr. Lightfoot’s Canadian Railroad Trilogy. A song that Pierre Berton once said conveyed as much about the building of the national railway as his own best-selling book on the subject.
Have a great weekend!
David and Amy
(and a bonus addition is a feature article on another 92-year-old, Rupert Murdoch. With all the things happening with Fox, it is a timely read)
Number 1 - Central banks, take a back seat – the great moderation is over - The Globe and Mail - Jim Thorne
Following this model, we’re entering a period in which it will take decades to grow out of the excesses of the past few decades. There’s no quick fix to our current predicament, as was the case after the Second World War.
The first step is for the Fed to pause and recognize that inflation was, in fact, transitory, and the real risks are secular stagnation and deflation. For investors, heightened volatility, low interest rates, moderate growth, low inflation, and a solid return to equities lie ahead.
Number 3 - John Dowd, CEO, GoGreen Investments
“What society is trying to do is epic, it’s transformative, and we’re trying to do it in a very quick timetable. It’s difficult to overstate the magnitude of work, investment, energy, and effort that needs to go into this.”
John Dowd
http://smartermarketspod.com/carbon-frontiers-episode-10-john-dowd/
Number 4 - The Peter Principle - Doomberg
“Russia’s energy is going to find its way to the market, and, as perverse as it might sound, we should want it to. Instead of attacking the supply of Putin’s energy, we should be doing everything in our power to increase ours. That is the only way to lower price and materially impact the funding of his war machine. For highly inelastic products like oil and natural gas, price action works both ways. It does not take significant undersupply for prices to skyrocket, nor does it take significant oversupply for prices to crash.”
The tragic conflict in Ukraine will drag on until the West increases its domestic production of energy and floods the world with supply. Absent that, Putin’s ability to turn the tables on our sanctions and increase his revenue will continue unabated. If only someone could have seen this coming.
Number 5 - Opinions | India’s economy is surging thanks to these three revolutions
India’s economy is experiencing a major growth spurt, thanks to these three advancements.
Opinion by Fareed Zakaria
Number 6 - Warren Buffett Has Betting Big on Oil. It’s Time to Find Out Why.
https://www.wsj.com/articles/warren-buffett-oil-stocks-berkshire-hathaway-charlie-munger-2c8b12b8
One of the most successful stock pickers of all time admitted years ago that he was ‘dead wrong’ on an earlier oil-company investment. What’s changed? The answer could come this weekend.
Warren Buffett Has Been Betting Big on Oil. It’s Time to Find Out Why.
Number 8 - The Real Roots of Midlife Crisis - Jonathan Rauch
This summer, a friend called in a state of unhappy perplexity. At age 47, after years of struggling to find security in academia, he had received tenure. Instead of feeling satisfied, however, he felt trapped. He fantasized about escape. His reaction had taken him by surprise. It made no sense. Was there something wrong with him? I gave him the best answer I know. I told him about the U-curve.
Not everyone goes through the U-curve. But many people do, and I did.
Number 10 - Gordon Lightfoot
If You Could Read My Mind – Gordon Lightfoot
https://www.youtube.com/watch?v=v5tr_L31StI
Gordon Lightfoot, the Canadian bard, wrote the tune for a nation’s identity.
Canadian Railroad Trilogy
We hope you found the Top Ten interesting this week, and are looking forward to another selection of articles, stories, and commentary next week. If you know of anyone else who would be interested in receiving our weekly note, please let me know.
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