A misleading model: Low bond yields have in the past been bad, not good, for equity returns

A misleading model: Low bond yields have in the past been bad, not good, for equity returns

Aug 3rd 2013 |From the print edition


BULLS tend to find all sorts of reasons for forecasting a higher stockmarket. This is especially true of investment-bank strategists, whose bonuses are likely to get bigger when share prices are rising. Low bond yields are often seized on by equity bulls. A recent research note from Deutsche Bank, for example, suggested there was a straight trade-off between changes in bond yields and the valuation of shares, in the form of the price-earnings ratio or “multiple”. Lower bond yields mean a higher multiple; based on current yields, shares are cheap. It is all remarkably reminiscent of the so-called “Fed model”, much loved by bulls in the 1990s. The model was based on a reference in Alan Greenspan’s 1997 congressional testimony to the close relationship between the ten-year bond yield and the earnings yield (the inverse of the price-earnings ratio) on the S&P 500 index. If the earnings yield was higher than the bond yield, then equities were cheap. Bond yields and earnings yields did indeed seem to move in tandem for about 15 years, and then the relationship broke down completely at around the turn of the century (see top chart). Read more of this post

With wearable technology, a new measure of independence for people with disabilities

With wearable technology, a new measure of independence for people with disabilities

By Hayley Tsukayama, Published: August 6

It’s been 18 years since Tammie Lou Van Sant held a camera. But nearly two decades after a car accident left her paralyzed from the chest down, Van Sant is shooting again — thanks to a device that could be part of technology’s next big trend. Google’s Glass headset, which connects to users’ smartphones and displays information on a screen that hovers above one eye, is the first of what analysts say may be a new trend of wearable technology — headsets, watches, fitness trackers and other devices that are worn, rather than slipped into a pocket. Analysts say growing interest in wearable tech could translate into big money for technology firms, with projected sales of up to 9.6 million of such devices worldwide by the end of 2016. Read more of this post

UPS is going to test 3D printing in its stores. It could be the beginning of a whole new business for the delivery firm

3D printing: Out of the box

Aug 6th 2013, 18:39 by P.M.


THE emergence of three-dimensional (3D) printing will have a revolutionary effect on manufacturing, but it may be equally disruptive for firms that make much of their living warehousing and delivering spare parts for companies. Now, one of the biggest delivery firms, UPS, is going to test 3D printing in its stores. Stratasys, a Minneapolis company which is one of the leading makers of 3D printers, will provide its uPrint SE desktop machines to six UPS Stores in America for a trial programme. These machines will allow customers to bring their designs to the store and have them printed out as objects—in much the same way as people take two-dimensional digital documents to the store and have them printed on paper. The uPrint machines can produce items in plastic in a range of colours and make bigger objects in finer detail than consumer-level 3D printers. UPS expects designers, entrepreneurs, start-ups and architects seeking models to be among its customers for 3D printing services. Some people might also be seeking spare parts: it is often small plastic items that break in products, but they can be difficult and expensive to find. Some industrial 3D printers can print metal components too.

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A ‘scalable’ career is one where growth is not dependent on the number of hours of work put in but where our growth is “dependent on the quality of our decisions”. What’s getting monetized is your ability to recognize patterns and wield your intellect, rather than spending your time pushing through rote tasks




Some skills may be awesome but not in demand: While a sonnet might take your breath away, iambic pentameter doesn’t have a high market demand. But some skills by any industry are wanted just as sweetly–and as founders of Pandora, Quora, and White Rabbit suggest, we can start developing them today. Here’s where to start:


Pandora cofounder Tim Westergren, who pitched his idea 348 times before securing crucial funding, reports that public speaking is one of the most universally useful skills. Why? “Whether you’re pitching a group of investors, rallying your employees, selling a customer, recruiting talent, addressing consumers, or doing a press tour, the ability to deliver a great talk is absolutely invaluable,” he says. And if you’d rather eat a microphone than have to speak into one, fret not: Quietauthor Susan Cain is here to help cure your oratory woes. Read more of this post

3 Keys to Repurposing Content on SlideShare

3 Keys to Repurposing Content on SlideShare

By Marisa Wong on July 31, 2013 | 5 Comments

Whether it’s Facebook updates, tweets, blog posts, research reports, newsletters, video, white papers or more, we all produce content these days. How do you reach your audiences on each platform without completely exhausting yourself? Most likely your content and ideas are already there — it’s just a matter of crafting them for the desired channel and reach. For SlideShare, that largely means turning your content into visual stories. SlideShare can host many forms of content, including long form writing, videos, presentations and PFDs. But if you’re going after number of views, there are a few things you could and should do to ignite the SideShare audience and attract more traffic.

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Thrice-bailed-out Dexia suffers fresh loss

August 7, 2013 10:38 am

Bailed-out Dexia suffers fresh loss

By James Fontanella-Khan in Brussels

Dexia, the Franco-Belgian bank that was one of the biggest victims of the financial crisis, suffered further losses in the first half of 2013, raising fears in Paris and Brussels that the troubled lender could further impact their recession-hit economies. The thrice bailed-out bank on Wednesday reported a net loss of €905m in the first half of 2013, despite enjoying lower funding costs. In the same period a year ago it lost €1.17bn. The performance of Dexia is being closely watched by French and Belgian authorities as their governments own most of the residual bank. They two countries were forced to inject €11bn in fresh capital and provide €90bn in state guarantees to save the bank in the aftermath of the 2008 crisis. Luxembourg also participated in the bailouts but to a lesser degree. Further losses at Dexia – once the world’s biggest lender to municipalities – raises the prospect of fresh capital injections or state guarantees from France and Belgium. Read more of this post

India to milk advantage from curbs on New Zealand dairy products; Nearly 90% of China’s $1.9 billion in milk powder imports last year originated in New Zealand

India to milk advantage from curbs on New Zealand dairy products

5:39am EDT

By Rajendra Jadhav

MUMBAI (Reuters) – India, the world’s biggest milk producer, hopes to seize on a New Zealand dairy product contamination scare to increase its exports and add market share in China and other emerging Asian countries. India’s milk production is likely to rise almost 5 percent in the year to next March to 133 million tons, said R G Chandramogan, managing director of Hatsun Agro Products Ltd, one of the country’s leading milk powder exporters. Traditionally, most of that production stays at home as a protein staple for a population of 1.2 billion, but with domestic demand pegged at around 128 million tons, there should be more milk available to make skimmed milk powder (SMP) for export. The Indian government also usually restricts overseas sales to keep a lid on local prices. Read more of this post

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