What to do? What to see and where to eat? How to think about the place? Thanks in advance for your assistance…and is Novi Sad worth a day trip?
1. How bad were the Black Panthers?
2. Spending a night in the robot-staffed hotel.
3. The Chinese stock market crash is worse than you think.
4. New Yorker profile of Varoufakis. Interesting throughout, covers Obama too, not just the usual even if this seems like familiar territory by now. “Adding up is the essence of democracy.” What an excellent line. The piece is by Ian Parker, and it deserves one of those David Brooks awards.
5. Brains striving for coherence.
6. Daniel Klein on who is a liberal.
7. “…even in relatively egalitarian Sweden, wealth begets wealth.”
We’re going to be hearing more about this topic I suspect, so let’s start by looking at some of the evidence. For now I’ll turn the microphone over to Xuemin (Sterling) Yan and Zhe Zhang (pdf):
We show that the positive relation between institutional ownership and future stock returns documented in Gompers and Metrick (2001) is driven by short-term institutions. Furthermore, short-term institutions’ trading forecasts future stock returns. This predictability does not reverse in the long run and is stronger for small and growth stocks. Short-term institutions’ trading is also positively related to future earnings surprises. By contrast, long-term institutions’ trading does not forecast future returns, nor is it related to future earnings news. Our results are consistent with the view that short-term institutions are better informed and they trade actively to exploit their informational advantage.
And here is from the Geoff Warren 2014 survey (pdf):
The link between investor short-termism and corporate myopia is not clear cut – While there is some evidence in support of such a link, it is by no mean compelling. Laverty (1996) examines arguments on the existence of short-termism, and points out there is: (1) no clear evidence of flawed short-term oriented management practices; (2) only mixed evidence that stock market myopia encourages corporate short-termism, noting for instance findings of positive stock market reactions to long-term investment by some papers; and, (3) an absence of empirical support for the supposed influence of ‘fluid capital’ on corporate behaviour.
Results of a survey of company management by Marston and Craven (1998) also question the extent to which institutional investors are short-term in focus. While their survey uncovers a perception that sell-side (broking) analysts are focused on the short-term, company management did not consider this the case for buy-side analysts and fund managers. When asked if the buy-side was too concerned with short-term profit opportunities, only 21% agreed while 53% disagreed.
There is more evidence to consider, but I will start by introducing the idea that the standard anti-publicly traded company tropes are not self-evidently true, or at the very least we do not know them to be true.
Baan Thai at 1326 14th St. serves regional Thai cuisine, from four different parts of the country, the attached sushi restaurant serves as a talisman against the uninformed. Get the tapioca chicken, the Isan sausage, and the Thai vermicelli in chili peanut sauce. This is one of three or four local places with real Thai food, and thus one of the best dining spots in DC. The Yelp reviews are nearly worthless, but here is useful WaPo coverage.
1. I am sorry people, I can no longer tell what is satire and what is not. I am so sorry.
2. Chinese Communists preferred. And China overtakes U.S. as top ice cream market. And Adam Sandler strikes the Taj Mahal, not the Great Wall. Read also about Captain Phillips at the bottom of that piece: “The reality of the situation is that China will probably never clear the film for censorship,” wrote Bruer. “Reasons being the big Military machine of the U.S. saving one U.S. citizen. China would never do the same and in no way would want to promote this idea. Also just the political tone of the film is something that they would not feel comfortable with.”
3. A guide to the worm wars, not Dune though, sorry. Goldacre responds in the comments.
4. Robert F. Graboyes, Fortress and Frontier in American Health Care, a new eBook.
5. Should Greece have defaulted in 2010?
6. Against culinary communism.
7. One of the best summaries of what we know about the minimum wage.
Recent overweighting to stem A-share plunge has made China Securities Finance Corp (CSF), central bank-backed refinancing institution, among top 10 shareholders of many listed-firms, reported Securities Times on Wednesday.
Among all investments, eight firms have been confirmed of the CSF’s stake, which include property developer Dulexe Family, Hualan Biological Engineering, resource purifying developer SJ Environment Protection, Yunnan Tin Company Group, Fujian Cosunter Pharmaceutical Co, Hunan Er-Kang Pharmaceutical Co, digital map provider NavInfo Co, and retailer Friendship&Apollo.
The CSF has been listed as the second-largest holder of tradable shares at Cosunter Pharmaceutical, third largest at SJ Environment Protection, and fifth-largest shareholders at Yunnan Tin Company, according to the Times citing disclosures to Shanghai and Shenzhen stock exchanges.
There is more here, by ChinaDaily, via Patrick Chovanec. I wonder how they are planning to unwind all of those share purchases?