Article in The Economist on a new book about China’s economy, “China’s Great Wall of Debt,” by McMahon from the WSJ: It is one of the clearest and most thorough statements of an argument often made about the country: that its government has relied on constant stimulus to keep growth strong, an addiction that is bound to backfire. Second, he comes closer than any previous writer to covering the Chinese economy as Michael Lewis, the hugely popular author of “The Big Short”, might do.
Factor Investor blog on poor quality getting expensive and high earnings yields getting cheaper.
Looks like inflation may be emerging in costs. General Mills (GIS), Tyson Foods (TSN), Procter & Gamble (PG) and Kimberly-Clark (KMB) are complaining about rising commodity costs or rising wages and transport costs. These will be passed on to the consumer.
Long read: Michael Mauboussin’s latest research [pdf] on how humans make comparisons.
Weekend videos:
- Peter Thiel @ The Economic Club of New York, March 16, 2018
- Steve Jobs talking to students at MIT Sloan in 1992. At 15m5s he gets serious on consultants.
LongHedge 