Pathlight Investors’ Top Recommended Reads - May 2013

  • Posted on: 9 December 2015
  • By: admin

Pathlight Investors’ Top Recommended Reads - May 2013

 

If you're like us, you're always on the lookout for great information or a valuable insight.  The articles below are pieces that we felt were worth sharing with our clients, friends, and partners.  Enjoy!

 

This month's top reads:

 

Europe is backing away from austerity – NYT article but it provides an overview of how Europe is dialing back its prior focus on fiscal consolidation in an effort to help spur growth.  NYT   http://goo.gl/0fpNC 

 

China manufacturing – the WSJ notes how int’l manufacturers increasingly are shifting production out of China due to rising costs (inc. and esp. higher wages).  WSJ  http://goo.gl/gCsZy   

 

Republicans will deemphasize entitlements and instead focusing on reforming the tax code in upcoming talks w/Democrats according to the Washington Post.  Entitlement reform remains a key goal of the GOP but senior leadership feels targeting the tax code makes more political and practical sense at the moment.  Washington Post   http://goo.gl/pAFdt   

 

US fiscal policy – oped in the Washington Post from Bowles/Simpson.  “A grand bargain is still possible.  Here’s how”.  Washington Post   http://goo.gl/UAaeo  

 

Fannie/Freddie’s involvement in the commercial mortgage market is fueling concerns of the GSEs inflating another real estate bubble (just as they were accused up doing in the residential real estate market back in the ‘00s).  Some in Washington wonder if the commercial portion of the GSEs can be privatized but plenty of vested interests promise to stand in the way of such a move.  FT  http://goo.gl/MRwYV   

 

Housing market heats up” – WSJ pg. 1 lead – nothing too incremental – highlights how housing prices are rising materially across the board (in some markets by double digits).  A lack of supply is helping squeeze prices higher.  “For now, recent data suggest home-price gains are likely to continue”.  WSJ   http://goo.gl/Qp5fc  

 

Texas oil & gas industry doing much better than California’s – Article discusses the different approaches to the oil and gas industry in Texas and California. http://online.wsj.com/article/SB10001424127887324695104578416871045535226.html?mod=trending_now_1

 

Eurozone officials optimistic – light can be seen at the end of the tunnel.  "All the skeletons are out of the closet," said one senior official who has spent much of the past three years working on the crisis. "There are no more major issues in the pipeline."  Reuters  http://goo.gl/dZegp  

 

Commodities – very negative WSJ article – “Wheels Come Off the Commodities Supercycle” – commodities have been in a bull market since ’98 but that “golden age” environment appears to be coming to an end.  Massive amounts of new supply is coming online, growth is slowing, growth is coming more efficient (i.e. each $1 of GDP is requiring less raw material input), and growth is changing (in particular in China where the government is shifting away from infrastructure build towards encouraging individual consumption).  WSJ   http://goo.gl/bIYjO

 

On a lighter note:

 

Retired racehorse finds calling as abstract painter: http://goo.gl/IoswE

 

Red panda shows off its strength with pull-ups: http://goo.gl/JoUEX