What caught my eye this week.
Always remember the stock market strives to make as many people who express an opinion look as foolish as possible.
Indices – especially in the US – have been rising despite Covid-19 still spreading across the globe.
Warren Buffett looked shell-shocked at his pandemic-poopered shareholder meeting on 2 May, as he explained why he wasn’t buying anything – why far from grabbing bargains with both hands, he’d pulled the ripcord on his holdings in airline stocks.
Americans were rioting.
And then… on Friday we saw ‘the biggest payroll surprise in history’. It revealed that US employers are now hiring not firing.
And the Internet finance kids went wild:
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Thinking about everything that has happened over the the past four years and this crazy 2020, if you told me I was living in an extra-terrestrial’s plaything – a sort of The Sims meets The Truman Show – and some Martian producer’s child had been accidentally left in charge of the controls…
Anyway, we hope you didn’t sell.
Have a great weekend all.
Negative yields on bonds: what do they mean? – Monevator
What is behind the coronavirus trading boom – Monevator
From the archive-ator: Personal time management for fun and profit – Monevator
Note: Some links are Google search results – in PC/desktop view you can click to read the piece without being a paid subscriber. Try privacy/incognito mode to avoid cookies. Consider subscribing if you read them a lot!1
The US adds 2.5 million jobs in May. Economists had expected eight million job losses – Reuters
UK house prices fall for third month in a row as Covid-19 stifles market – Guardian
Bank of England will ramp up QE to near-£1 trillion over next year, says Capital Economics – ThisIsMoney
One in seven Help to Buy homes lose value despite local house prices soaring – Which?
Clothing prices falling at a record pace as beleaguered shops prepare to reopen – ThisIsMoney
Australia is in its first recession for 29 years – 7 News
Poll: Four out of five families in UK have more money to spend since lockdown – ThisIsMoney
Misconduct has risen among work-from-home traders – FN London
Hong Kong: Tens of thousands defy ban to attend Tiananmen vigil – BBC
The grim racial inequalities behind America’s protests – The Economist
Products and services
Will a coronavirus payment holiday impact your credit score? – Which?
Ominous: Marcus’ new fixed-rate savings account pays less (1%) than its easy access deal (1.05%) – ThisIsMoney
Homes with workshops [Gallery] – Guardian
Comment and opinion
As of 3 June, the US S&P 500 was up 39.6%, for the best 50-day rally ever… – Ryan Detrick via Twitter
…which is extraordinary, so don’t beat yourself up if you hedged or prevaricated – Josh Brown
Massive up and down stock moves in the same year are commoner than you think – A Wealth of Common Sense
Currency hedging: fine for stocks, not for bonds [US but relevant] – Morningstar
Spooked by the crash, an early retiree considers going back to work – Simple Living in Somerset
The upside of a down market – Humble Dollar
Three reasons stocks are rising – The Atlantic
Larry Swedroe: Think carefully before you add gold to your portfolio – Seeking Alpha
Naughty corner: Active antics
Steadfast, greedy, or fearful? – Elm Funds
Oil is the only sector of the US market that still looks truly under-valued – Morningstar
How Facebook and Google created a ‘kill zone’ – Klement on Investing
The importance of consistently covered dividends – UK Value Investor
20 global investment trusts compared – IT Investor
Who should we believe about tail-risk hedging? – BNN Bloomberg
“At any given time between 17 May and 30 May 2020, we estimated that an average of 0.10% of the community population had COVID-19 (95% confidence interval: 0.05% to 0.18%); this equates to an average of 53,000 people in England (95% confidence interval: 25,000 to 99,000)” – ONS
Cambridge researchers say coronavirus transmission rate may be rising in the East of England – ITV
Could more UK lives have been saved? – BBC
Flatten it? In Iceland they eliminated the curve – New Yorker
South Korea is to start logging citizens who go to nightclubs as part of tackling Covid-19 – Reuters
Sweden is accelerating the launch of an inquiry into its no-lockdown coronavirus strategy – Business Insider
The good and bad lessons from Sweden – Karen Landman via Medium
The post-lockdown economy explained [Video] – The Economist
Quarantine tips and lessons from 17th Century Florence [Video] – YouTube
Black Americans are twice as likely to be hospitalized from Covid-19 – MarketWatch
Kindle book bargains
The Anti-Procrastination Mindset by Harry Heijligers – £0.99 on Kindle
The Perils of Perception: Why We’re Wrong About Nearly Everything by Bobby Duffy – £1.99 on Kindle
The Spider Network: The Wild Story of a Maths Genius and One of the Greatest Scams in Financial History by David Enrich – £1.99 on Kindle
Off our beat
The UK electricity system was coal-free in May, thanks to the sunny weather and lockdown – Guardian
Consider a gap year – Seth Godin
‘I’ve never felt so close to anyone this quickly’: the whirlwind romances of lockdown – Guardian
Tobi Lutke, founder of Shopify, on building a modern business [Podcast] – Invest Like the Best
How to convince your boss you need time off – Harvard Business Review
“I like to say, “Experience is what you got when you didn’t get what you wanted.”
– Howard Marks, The Most Important Thing
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