The Chart Room

Morgan Housel, a NYT bestselling author, argues that tariffs are economically harmful, raising consumer prices and reducing competitiveness, despite their political appeal. He explains that while manufacturing jobs have declined, the primary cause is automation—not offshoring—and that even if production returns to the U.S., employment levels won’t match the past due to technological advancements. Housel contextualizes America’s mid-20th-century manufacturing dominance as a unique post-WWII phenomenon, eroded by global competition and automation. He acknowledges the frustration of displaced workers but warns against protectionism, advocating instead for free trade and specialization. Regarding the recent market decline tied to tariff news, he advises long-term investing discipline, emphasizing that crises eventually resolve through counterforces, and maintains rational optimism about the future despite short-term turmoil.

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Despite global concerns like war and social division, a recent study found that positive emotions have increased and negative emotions have decreased worldwide since the pandemic, with young people being the most positive group. The study suggests cultural factors like emotional resilience and political events can also influence emotional well-being.

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What does a century of economic cycles teach investors about investing?  This interactive exhibit from DFA examines how stocks have behaved during US economic downturns.  Markets around the world have often rewarded investors even when economic activity has slowed.  This is an important lesson on the forward-looking nature of markets, highlighting how current market prices reflect market participants’ collective expectations for the future.

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If you are interested in examining ways to help the people of Ukraine, the following two online publications offer numerous links to organizations actively involved in the effort:

Timeout Magazine: https://www.timeout.com/news/23-ways-you-can-help-the-people-of-ukraine-right-now-040722

The Cut Magazine: https://www.thecut.com/2022/03/russia-invades-ukraine-how-to-help-the-people-of-ukraine.html

We’ve also found that the U.S. Department of State has some helpful information, including actions being taken by our government: https://www.state.gov/united-with-ukraine/

Bloomberg reports that Pfizer and BioNTech SE said initial lab studies show a third dose of their Covid-19 vaccine may be needed to neutralize the omicron variant, results that will accelerate booster-shot drives around the world and may lead to use of new strain-specific vaccines.

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In this interview with Canary Media, energy strategist Kingsmill Bond from the think Carbon Tracker says the transition to renewables is inevitable based on sheer economics.

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Pax World Funds recently released its Sustainability & Impact Profile Report.
The Company stated in the release of this report (May 2021) that the document will help “..provide evidence of the Fund’s measurable, positive impact.”
 
 

The recent roller-coaster ride of GameStop Corp. (GME) has provided investors with several learning opportunities.  Below are three articles we find useful in understanding this recent and noteworthy event.

A conversation with Scott Fearon and Robert Korajczyk featured in KelloggInsight:  Does GameStop Signal the End of Short Selling as We Know It?

From Marlize Van Romburgh of Crunchbase News: From The Editor’s Desk: Stopping To Smell The Tulips

From Greg Iacurci of CNBC: Why the GameStop Frenzy May Hurt Retirees Along with Hedge Funds

What will be the future of US-China relations during the Biden-Harris Administration?  Writing for the Harvard Business Review, Oliver Reynolds and Arne Pohlman examine both economies and what the next 4-years may have in store.

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Writing for Dimensional Fund Advisors, Professor Kenneth French explains expected vs the unexpected returns and why these terms are important for investors.

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