As we usher in the new year, it’s time for the second edition of the “Best of Books 2022.” Last week, we highlighted some notable reads from our column over the past year. With only a few hours left before 2022 concludes, we bring you another selection of books that captivated us in the last twelve months. Cheers!
Edward Chancellor
Review via The Economist
Critics often question the artificially low interest rates that have dominated the global economy in recent decades, prompting the inquiry: low relative to what?
Edward Chancellor, a historian and financier, provides an answer in his book “The Price of Time.” The essence of his argument is that humans prefer immediate gratification, and interest rates serve as the incentive for postponing that gratification. When rates are kept exceptionally low, the repercussions can be severe: financial instability, increasing inequality, and distress for savers. Chancellor’s extensive exploration of interest rate history and classical economic theory is thorough and engaging; however, it also has significant flaws in its reasoning.
As 2022 draws to a close, the US bond market is on track to register a significant loss for the year.
* Biden signs a $1.7 trillion spending bill, preventing a government shutdown
* Xi and Putin speak via video to showcase Russia-China relations
* A low risk of a new dangerous Covid-19 variant emerging in China
* Accurately gauging China’s Covid outbreak is a scientific challenge
* Vietnam’s economy defies global trends with robust growth in 2022
* More than half of U.S. states reveal signs of slowing economic activity
* Small business owners report easier hiring and retention of employees
* U.S. mortgage rates rebound after a six-week decline
* Jobless claims in the U.S. (unadjusted) continue to climb compared to last year:
The annual performance of equity sectors often shows stark contrasts, and the remarkable gains made by energy stocks in 2022 are particularly notable compared to other sectors, as indicated by a series of proxy ETFs.
* Russia launches a massive missile barrage across Ukraine
* The U.S. requires travelers from China to provide a negative Covid test
* Warnings of a potential global recession might be exaggerated
* Consumers have played a pivotal role in driving economic growth this year. Will it continue?
* European natural gas prices have reverted to levels seen before the Ukraine conflict
* Investors believe the U.S. dollar’s strength may have peaked
* ExxonMobil sues the EU to challenge a new energy windfall tax on oil companies
* U.S. pending home sales in November fell to the second-lowest level recorded:
This year, investing in U.S. stocks through various risk factors has proven to be quite challenging. Unless we witness an extraordinary rally before Friday’s market closing, many investors in this space will likely end up disappointed, as evidenced by a range of proxy ETFs.
* The Supreme Court rules against halting the expulsion of migrants
* US holiday sales rise by 7.6% despite inflation, according to credit card data
* Physical and cyberattacks on U.S. energy infrastructure reached their highest level since 2012
* Russia bans oil sales to nations imposing a price cap
* Tough positions taken by Ukraine and Russia indicate that peace talks are unlikely soon
* An economist predicts a slow-growth decade for the global economy
* The Dallas Fed Manufacturing Index shows improvement in December
* The growth rate for U.S. home prices continues to slow down in October:
In recent years, dismissing asset allocation as ineffective has gained traction among some circles, but such claims are factually incorrect. This year’s evidence particularly highlights the effectiveness of asset allocation, showcasing an unusually wide range of returns as we near the end of 2022. The implication is clear: there have been ample opportunities within asset allocation strategies.
* China takes steps towards reopening by lifting quarantine requirements for foreign travelers
* Russia’s foreign minister issues an ultimatum to Ukraine
* Ukraine’s foreign minister aims for a peace summit in February
* Could a swift decrease in inflation avert a recession?
* Inflation alters the “safe” withdrawal rate for investment portfolios
* Semiconductor inventories increase as demand for electronics drops
* Hedge funds had a successful year in 2022
* Cash reserves at pension funds fall to the lowest level in 15 years
* The yield on U.S. 10-year Treasuries opens the trading week at a month-high:
