Friday, March 12, 2021

This week's interesting finds

Calculating your COVID stimulus payment

The Washington Post put together a simple calculator for a family to figure out how big the checks are that are coming their way. For example, a family with two parents (one who works and makes $110k per year) and three kids will get $8400. 

Calculator link

Consumers are left with massive pent up savings. 

Investing: the greatest show on Earth 

“Investing is a broader field than it looks, and there is so much to learn about it outside of the narrow lens of finance. Greed, fear, risk, opportunity, and scarcity – the most critical topics in investing – reveal themselves in all kinds of fields. 

More important is this: If you find something that is true in more than one field, you’ve probably uncovered something particularly important. The more fields it shows up in, the more likely it is to be a fundamental and recurring driver of how the world works. 

Which is to say: Restricting your investment learning to the narrow lens of finance means you’re less likely to uncover the biggest and most important parts of investing, which are the ways that people think about things like risk and reward and show up in many fields”

A New ETF named FOMO targets everything from SPACs to volatility 

A filing this week with the U.S. Securities and Exchange Commission seeks to create the FOMO exchange-traded fund, named for the famous acronym associated with countless bubbles and market manias. 

The ETF from the Collaborative Investment Series Trust intends to invest in “securities that reflect current or emerging trends,” according to a registration statement. The fund, advised by Connecticut-based Tuttle Tactical Management LLC, will select its holdings based on a “proprietary tactical model,” the filing says. 

Electric vehicles (EV)

A study by Research Affiliates on Electric vehicles: 

    “In 2020, the market capitalization of the worldwide auto industry more than doubled. The driving force was the “big new EV market”. As a result, the stock price of virtually every EV specialist, including more established firms skyrocketed. Even the prices of traditional auto makers rose handily when they announced their own EV plans. In our view, today’s electric vehicle industry is a classic example of the big market delusion. The EV phenomenon will not change the fact that the auto industry will remain highly competitive and capital intensive, and not every company can be a winner. Further, it remains unclear how simply switching the means of auto propulsion will make the entire light EV market more profitable, an assumption that the market is currently making. We suspect that as EV competition heats up, many companies will fail, as was the case in previous industry booms – whether autos, airlines or technology – and with time the total value of the industry will recede to more reasonable levels.”

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