Trust Digest 109 (August 27, 2015)
Everyone’s got it backward – the market chaos is EXACTLY why the Fed needs to pull the trigger in September
Peter Tchir at Brean Capital thinks the recent stock market chaos is the reason for the Federal Reserve to raise rates in September.
Amid the recent sell-off in US markets, conventional wisdom has coalesced around the idea that the Federal Reserve's plan to raise interest rates will now have to be put on hold.
Key Words: Interest rates, Tchir, hiking, comfortable, S&P 500, volatility, hiking rate, flexibility
Trust Issues: Integrity, Conflict of Interest, Risk Tolerance, Situational Security, Predictability
Five Reasons Why China’s Woes Are Shaking the World’s Markets
Most non-Chinese don't trade stocks in China, but the continuing crash in the Shanghai market still threatens to change their lives.
The challenge is that China is the world's largest exporter ($2.2 trillion worth in 2013) and second-largest importer ($2 trillion), so its struggles are potentially the world's problems.
Key Words: Shanghai market, China, credibility, exports, crude oil, Boeing, commodities
Trust Issues: Conflict of Interest, Risk Tolerance, Capability, Security, Similarity, Predictability
Donald Trump to Anchor Jorge Ramos: ‘Go Back to Univision’
Republican presidential front-runner Donald Trump clashed with Univision anchor Jorge Ramos at a press conference in Dubuque, Iowa, on Tuesday, leading to journalist's temporary removal from the event.
Key Words: Jorge Ramos, Mexican-American, Immigration policy, security, bombastic, honest
Trust Issues: Honesty, Predictability, Adjustment, Similarities, Risk Tolerance, Capability, Power
Omega-3 Supplements Don’t Improve Memory: Study
Popping fish oil pills may not be a boon to the brain, according to the latest study. The data has been building, slowly but surely, and now the strongest study yet may finally dispel the myth that taking omega-3 supplements can protect the brain from cognitive decline and dementia.
Key Word: Fish, brain function, diet, recall, placebo, cognitive skills, fatty acids, health-boon
Trust Issues: Integrity, Benevolent concern, Risk Tolerance, Capability, Predictability, Similarity
Stocks Deepen Their Slide After Early Gains Evaporate
A sudden reversal in United States stock prices late in trading on Tuesday produced a sixth consecutive session of losses and heightened uncertainty about the challenges facing global markets. The wild swings in prices over the last two days have been the most extreme since the financial crisis. The benchmark Standard & Poor’s 500-stock index surged as much as 2.9 percent on Tuesday, but ended down 1.4 percent.
Key Words: Uncertainty, challenges, volatility, turmoil, portfolio, China, stabilize, faith, power
Trust Issues: Risk Tolerance, Adjustment, Power, Predictability, Alignment of Interest, Capability
Signs, Long Unheeded, Now Point to Risks in U.S. Economy
As investors scramble to make sense of the wild market swings in recent days, a number of financial experts argue that, for more than a year now, signs pointing to an equity crisis were there for all to see. The data points range from the obvious to the obscure, encompassing stock market and credit bubbles in China, the strength of the dollar relative to emerging market currencies, a commodity rout and a sudden halt to global earnings growth.
Key Words: Equity crisis, obscure, credit bubbles, China, Interest Rates, G.D.P., emerging-market, steel, iron, high yield bonds, yen
Trust Issue: Capability, Risk Tolerance, Similarity, Benevolent concern, Conflict of Interest, Predictability, Situational Security, Adjustment
Google will have a massive influence on the 2016 presidential race
Google has an enormous amount of power through its ability to manipulate search rankings. The company can make or break a brand or website by making minor tweaks to its algorithms. There's an entire science devoted to interpreting every move Google makes because even subtle changes can make a huge difference.
Key Words: Power, manipulate, algorithms, search results, control, election, voting preferences, trust, fraud, tweak
Trust Issue: Power, Situational Adjustment, Similarity, Capability, Risk Tolerance, Integrity, Predictability, Benevolent Concern
Amazon is quietly testing a plan to take on GrubHub
Amazon is testing a restaurant delivery service, according to a new report in GeekWire. It's currently testing the delivery service with its own employees in Seattle, where Amazon is based. The report did not say how many restaurants or which restaurants are participating in the test, but noted that the service appears to be related the new Amazon Prime Now one-hour delivery service.
Key Words: Restaurant delivery service, Prime Now, Logistics, Distribution, delivery trucks
Trust Issue: Risk Tolerance, Situational Security, Alignment of Interests, Predictability