5 from 5i: Investing is the Intersection of Economics and Psychology

Michael Southern Nov 17, 2017

The US House of Representatives yesterday approved its version of legislation to overhaul the U.S. tax code in a 227-205 vote, passing a key milestone in the administration’s plan to cut taxes across the board for companies and individuals. Bitcoin's wild week continues and is closing in on $8,000 just days after suffering a 29 percent crash. Prem Watsa’s Fairfax Financial (FFH) announced it acquired an additional 9.4 million Class B shares of Torstar (TS.B), taking its stake to 40.6% of the Toronto Star publisher. Aurora Cannibis (ACB) reported Q1 results that were below estimates on higher wholesale purchases; However, the company maximized production at its existing facility and achieved cash costs below $2.00 per gram. Here are five stories we found interesting this week: 

  1. Future stock returns will equal profit growth plus or minus the change in investor attitudes.

  2. Flattening US Yield Curve: New Normal or a sign of a slowdown?

  3. Are food retailers no longer deserving of premium valuations?

  4. Check your investing ego75% of people believe they’re above average regardless of the skill

  5. An older but interesting model on how to price gold bullion

 

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