Research and Analytics
Research and Analytics
The global economy is off to a rough start in 2022, with the Russia-Ukraine conflict, China’s lockdown,
supply chain chaos, decades-high inflation, soaring oil prices, and increased global market uncertainty all
playing a role. This year has seen billions of dollars wiped off NVIDIA’s market capitalization, just like
other tech giants (down 48 percent YTD). Is NVIDIA well-equipped to weather the current bear market?
Amid greater adoption, the correlation of crypto assets with traditional holdings like stocks has increased significantly, which limits their perceived risk diversification benefits and raises the risk of contagion across financial markets, according to new IMF research.
If you’re Jeff Bezos, you’re not going to have some random dude manage your money and hope for the best. You’re not gonna open up a Robinhood account and risk it all on meme stocks like Gamestop. You’re going to hire the type of investor who has a PhD in mathematics and drives a Bugatti; a go-getter who wakes up with a turmeric latte and pores over satellite images of factories in Asia to predict the earnings of some 3D printing company most of us have never heard of. We’re talking about the best of the best in finance.
While it’s had some ups and downs, the stock market has soared to historic heights in recent years. For many, that’s great news: it’s a sign that the economy and their retirement accounts are doing really well. For Jan Eeckhout, however, the booming stock market is a sign that there’s something deeply wrong with the economy.
Sure, the economist says, he has a retirement account with stocks, and he personally benefits from the ongoing bonanza on stock exchanges. But the rocket ride of the stock market is powered by the exploding profits of increasingly powerful corporations. Their increasingly ridiculous profits, he says, are eating the income of the vast bulk of workers and hurting the overall economy. That notion is the central thesis of his forthcoming book, The Profit Paradox: How Thriving Firms Threaten the Future of Work.
