Canfield Press <span>Blog</span>

Canfield Press Blog




Robots take on Wall Street

Blackrock is replacing human fund mangers in some of its actively managed fund with technology-driven strategies. "Its traditional active funds have struggled and it recognizes that it is difficult for traditional stock selectors to consistently outperform," said Morning Star’s Alex Bryan. As self-driving cars threatens to hurt taxi drivers and truckers, automation "just hit asset management people who make a half of million dollars a year," said Hearts & Wallets’ Laura Varas. "What BlackRock is doing is huge and there will be more to come. [Financial services firms need to] re-invent what role humans should play."

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Posted: March 30th, 2017 | Permalink

The Auto “Trade In Treadmill”

Car purchasers are finding that the value of their existing car is lower than the value of their loan. Lenders are taking the risk on their balance sheet by wrapping the customer's negative equity into the his loan balance of their new car purchase and extending the loan term.  “In a five year period, we running scenarios of used values by being off by as much as 50%," said Morgan Stanley’s Adam Jonas. “There are implications across the capital stack and across the sector stack on obsolesce.”

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Posted: March 29th, 2017 | Permalink

Homeownership in Crisis

U.S. homeownership rates have fallen to lowest level in more than 50 years.

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Posted: March 28th, 2017 | Permalink

A Look at America's Infrastructure

“Should money go to roadways, airports, water systems, broadband networks, or rail?” asks Visual Capitalist’s Jeff Desjardins. “The biggest challenge facing America’s infrastructure problem is where to get the biggest ROI from infrastructure investments. …One viewpoint on this again comes from the American Society of Civil Engineers: they figure that by 2020, the U.S. needs to put $1.7 trillion towards roads, bridges and transit, $736 billion to electricity and power grids, $391 billion towards schools, $134 billion to airports, and $131 billion to waterways and related projects.”

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Posted: March 27th, 2017 | Permalink

Central Bank Shell Game: The Unintended Consequences if NIRP

“It is clear that the negative rate experiment is neither sustainable nor helpful to economic growth,” wrote Nick Kararan. “It only inflates bubbles while widening the wealth gap in Swedish society. A once prudent and financially conservative people are now getting drunk on debt, wrecking their futures. The very premise of Swedish society is under attack. Nevertheless, it does not appear that this policy will abate anytime soon. There seems to be one lever in the Central Banker’s control room: interest rates. If anything, they may get more aggressive with it.”

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Posted: March 24th, 2017 | Permalink

Regulatory Dark Matter

“…[F]ederal departments and agencies issue well over 3,000 regulations of varying significance,” wrote Clyde Wayne Crews Jr. “…[B]eyond those rules, Congress lacks a clear grasp of the amount and cost of the thousands of executive branch and federal agency proclamations and issuances, including guidance documents, memoranda, bulletins, circulars, and letters that carry practical (if not always technically legally) binding regulatory effect. There are hundreds of 'significant' agency guidance documents now in effect, plus many thousands of other such documents that are subject to little scrutiny or democratic accountability.”

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Posted: March 23rd, 2017 | Permalink