Author: Snippet.Finance

Tools

Support Snippet

  • Snippet started as a passion project a year and a half ago.
  • Since then almost 5,000 of you follow us across various platforms.
  • A big thank you to everyone who reads and shares.
  • With such growth the site is starting to incur higher costs like our Mailchimp bill.
  • Therefore, I would be grateful for any support, commensurate to the value you feel Snippet provides.
  • Thank you in advance.
Click to Donate
Stocks

Automotive Semis

  • Informative post on what is going on in automotive semiconductor markets.
  • Shortages in the short term – mainly because the pandemic wrong-footed car makers.
  • Growth in the long term – driven by the amount of semi-content in a car (an electric vehicle has 110% more content than a conventional vehicle, autonomous driving doubles that).
Misc

Being Negative

  • This is an eye-opening essay on The Art of Negativity with useful read-across to investing.
  • This was an interesting result from research – “there is a clear “asymmetry in the way that adults use positive versus negative information to make sense of their world; specifically, across an array of psychological situations and tasks, adults display a negativity bias, or the propensity to attend to, learn from, and use negative information far more than positive information.“”
  • A nice quote – “An optimist believes we live in the best possible of worlds. A pessimist fears that this is true.”
Macroeconomics

Inflation pt 2

  • Most indicators suggest inflation is heading higher in 2021, though there is some disagreement (here).
  • Here is one more from Nordea to add to the list.
  • The bank argues overshooting inflation will be harder to defend in an average inflation targeting regime than when it is below target.
  • The Fed and the market, as we wrote before, need to discern whether this is transitory or persistent.
Macroeconomics

Inflation

  • Inflation has been a big topic in markets recently.
  • This post is worth reading to understand the key distinctions between transitory and persistent inflation.
  • Interesting stat – sectors that are vulnerable to post pandemic consumption shifts are less than a quarter of PCE inflation component weights.
  • The bottom line is it is important, for markets and the Fed, to watch labour markets alongside inflation.
WordPress Cookie Notice by Real Cookie Banner