economics

It was also another manifestation of the intermarket reality that financial trends are usually global in nature.

Pricing power has arguably been the most enduring determinant of high returns for these investments. It has come from two main sources. The first is a concentrated market structure, closely associated with effective management of capacity through the demand cycle which encourages a rational approach to pricing. The second is “intrinsic” pricing

At the quarterly to annual scale however, the factors to price moves become more obvious.

The key factors are:

• GDP growth differentials;

• Interest rate differentials; and

• Capital flows

Investments & inventory: When a firm buys INR 300 machine, it’s basically an inflow (or income) for another firm which sells it. But for the buying firm, it’s not a cost. It’s an investment. It becomes a cost very slowly as machine depreciates. So for the two firms together, decision of a firm to buy a machine from another firm becomes profit.

when analyzing the prospects of both value and growth stocks, it is necessary to take into account asset growth, at both the company and the sectoral level.

Because the purpose of investment today is to increase consumption tomorrow, if the increase in income inequality is expected to be permanent, the desired amount of productive investment is actually likely to decline.

In my opinion, this highlights the importance of the hiring channel. When employers want to shrink their workforce (or at least slow its growth), they use hiring as their primary lever; and when it’s time to expand/accelerate, they pull the same lever. Ergo, young people are highly levered to sectoral, occupational or economy-wide cycles, something

The first and more notable one was the payroll data. Back on August 21st, the BLS revised job numbers downward by 818,000 or about 30% for the 12-month period from April 2023 through March 2024. This is the biggest downward revision since 2009. They still estimate that jobs were created, but 818,000 shy of the previously reported cumulative number

Take Base Power Company. What’s the Why Now for Base?

There are many, and that’s the point.

Growing renewable generation and electrification of demand has destabilized the grid. Batteries have gotten much cheaper. Engineers have gotten better at distributed systems software. Consumer software keeps getting better. Digital customer acquisition is