As I mentioned previously, I am stopping the Sunday link-fest for now. It took several hours between finding good content, formatting correctly etc. Instead I have found that readers like pictures, so I am going to do an info-graph every sunday. I also have some good video interviews from this past Friday scheduled to post for later on Sunday, and hope to do this future weeks.
I will put a few links in if I find them useful and do book of the week, and poll of the week.
Poll of the week (related to the info-graph):
Abacab Fund Sees Mispricing In Options As Black-Scholes Has Become “Inadequate”
Abacab Asset Management's flagship investment fund, the Abacab Fund, had a "very strong" 2020, returning 25.9% net, that's according to a copy of the firm's year-end letter to investors, which ValueWalk has been able to review. Commenting on the investment environment last year, the fund manager noted that, due to the accelerated adoption of many Read More
The book of the week is Exile on Wall Street: One Analyst’s Fight to Save the Big Banks from Themselves (Wiley: November 2011), by Mike Mayo. The book discusses the difficulties which sell-side analysts on recommending shorts. See accompanying article on the topic from this weeks Wall Street Journal-Why Wall Street Can’t Handle the Truth. I would love to seem some comments from my friends on the sell-side.
Also, I have not checked it out but heard good things about Steve Jobs by Walter Isaacson. The interview on Charlie Rose is also great. Michael Lewis’ book, Boomerang: Travels in the New Third World by Michael Lewis. I plan on reading the book mostly to hear about Kyle Bass. I am getting a bit sick of the Michael Lewis roadshow, but he is a good author. One thing to keep in mind, Joel Greenblatt recently said (in reference to an akward question about Michael Burry) about Lewis ‘He never lets facts get in the way of a good story’.
Roger Lowenstein is a better author IMHO and had a great article this week-Corzine Forgot Lessons of Long-Term Capital: Roger Lowenstein. If you want to read my interview with Roger Lowenstein click on the following link-Interview with Roger Lowenstein.
One ‘quick’ announcement before I get to infograph: I hope to have a BIG announcement this week, but it might not be until next week. Due to very kind help from Merrin of SocialMediaSorted.com (who spent hours answering my questions for free and refused my help for anything in return), I am able to set-up some more ways to follow ValueWalk. Don’t bombard her with questions but you can view her blog to see some interesting things about SMO and setting up Facebook for both personal and professional use. It is worth checking out her site even if you do not have a blog.
In the past, people have sent my friend requests on Facebook, but I feel uncomfortable viewing personal family pictures, unless they are close friends. I can now set-up connecting where you can follow valueWalk updates by friending me on Facebook. Until I get the hang of it I wont be able to post all my links on my personal account (my friends and family complain) but will be posting some links, which everyone can view.
Without further to do. The US economy created 80k jobs this Month. Private-sector employers added 104,000 jobs in October, offset by 24,000 job cuts by governments. Hiring in September was revised up to 158,000 from 103,000 and job growth in August was revised up to 104,000 from 57,000.
The market breathed a sigh of relief that the numbers were positive at all, but barring a huge change (like massive growth like a shale revolution Could Shale Gas Reignite the U.S. Economy? or changing our immigration policies, as I suggested here- How to Solve All Our Economic Problems Without Adding a Dime to the Deficit in 10 Minutes; the near and long term picture looks very ugly:
— Strong: 208,000 per month: Average monthly job creation during 2005, the best year in 2000s.
— Amazing: 321,000 per month: Average monthly job creation during 1994, the best year in 1990s.
— Yeah, right: 472,000 per month: Most jobs created in a single month of the 2000s.
If the economy adds about 208,000 jobs per month, which was the average monthly rate for the best year of job creation in the 2000s, then it will take until June 2023 — another 12 years — to close the job gap. Given a more optimistic rate of 321,000 jobs per month, which was the average monthly rate for the best year of job creation in the 1990s, the economy will reach pre-recession employment levels by May 2016 — not for another five years.
From Zero Hedge: