Last week offered some lessons in
career management, economics, and investor impulse, among other things. Derek
Jeter, the well-loved Yankees shortstop, finished the final home game of his
career by smacking a game-winning hit. Throughout his
last season, ticket prices for Yankees games soared on the secondary market
with $16 bleacher seats selling for more than $200. By the end of the season,
ticket vendors were asking as much as $11,000 a seat.
On the other coast, Bill Gross,
renowned bond guru, did not retire. Gross left the firm he helped found for a
smaller money manager. Shares of stock in his new company rose about 43 percent
as investors anticipated the potential inflow of new assets. They also
anticipated an outflow of assets from his old firm, according to Barron’s, which caused yields on
Treasuries and corporate bonds to move higher on Friday, pushing prices south.
Gross’s shifting alliance wasn’t
the only thing churning bond markets last week, however. Trepidation about
global economic growth and geopolitical matters (e.g., Russia vs. Ukraine,
etc.) had investors fleeing to “safe assets” earlier in the week. That pushed
Treasury yields lower and prices higher. Barron’s
reported:
“Thursday’s markets were all
about a flight from risk, in part because of reports of a Russian draft law to
confiscate foreign-owned assets in retaliation for Ukraine sanctions. More
important is the message from “Dr. Copper,” suggesting weakness globally,
whether in faltering Europe or slowing China. All of which suggests it will be
an even more “considerable time” until the Federal Reserve raises interest
rates.”
Volatility may be the name of the
game for a while. Bloomberg suggested
looking backward for guidance about the future. In 2013, Fed Chairman Ben
Bernanke suggested tapering could begin sooner than expected. Treasury yields
leapt by 1 percent as the market threw a “taper tantrum.” Just last week,
Chairwoman Janet Yellen warned markets the Federal Open Market Committee statement
was not a promise about the timing of rate hikes. Bloomberg said investors remained complacent. Apparently, they
weren’t concerned unexpected economic strength in the United States could move
the timetable forward.
At the end of the week, the Commerce
Department reported economic growth was more robust than originally thought during
the second quarter. The economy grew at the fastest rate in more than two
years.
do you have what it takes? If you’re about 74 inches tall,
have a deep voice, and have run a marathon, you may. The Economist’s recent article, Look
of a Leader, found, “It is remarkable, in this supposed age of diversity,
how many bosses still conform to the stereotype.” The article included a mixture
of studies describing the characteristics of chief executive officers (CEOs)
and other leaders:
· 30 percent of Fortune 500 companies’ CEOs are 74 inches
or taller (less than 4 percent of Americans are that tall).
· Voice quality was more important
than content when people were asked to evaluate executive speeches.
· Male CEOs with the deepest voices
earn $187,000 more each year, on average.
· Companies with CEOs who had
finished marathons were worth about 5 percent more, on average, than those with
CEOs that had not.
“There’s one very important thing everyone should do before
heading into a job interview, giving a big speech, or attempting an athletic
feat... Everyone should spend two minutes power posing. What, you ask, is power
posing? It is adopting the stances associated with confidence, power, and
achievement – chest lifted, head held high, arms either up or propped on the
hips.”
Weekly
Focus – Think About It
--Derek
Jeter, New York Yankee’s recently retired shortstop
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