8 November 2018 FT — Articles to Read

8 November 2018


Question: According to MSN: Money, what are 10 things you need for lifelong financial success?


Women and minorities dominate as Goldman picks small cadre of partners – Pg. 1

–        …named 69 new partners yesterday

–        The biennial round comes as Goldman is battling one of the most serious reputational crises of its history, with a criminal indictment from the Department of Justice implicating one former and one current partner.  Alongside salaries of at least $950,000 and access to special investment funds, the rank is supposed to guard the bank’s standards

–        Women…made up 26% of the promoted class, …while younger “millennial” staff represented 29%

–        The class is smaller than the 84 appointed in the last round in 2016…

–        Traders also did well, accounting for 28 of the appointees,…


San Francisco backs homelessness tax – Pg. 4

–        The levy…was designed to raise between $250m and $300m from big businesses with headquarters in the city.  The tax would boost city spending on homelessness by as much as 80%

–        Some local entrepreneurs and investors argue that the tax, averaging 0.5% on the gross receipts of businesses with revenues of more than $50m, will be a particular burden on lossmaking tech companies as well as those with low-margin business models


Murkier outlook the only certainty of US midterms – Pg. 19

–        Initial investor reaction …. Was sanguine

–        …the outcome sets up a two-year period before the 2020 presidential election that is likely to be less straight-forward for markets than the first two years of the Trump presidency that saw US stocks set new record

–        A divided Congress arrives against a backdrop of tighter monetary policy and concerns that economy growth has peaked

–        Historically, stocks rally after mid-terms as both investors and policymakers move on from the uncertainty over its outcome.  This year’s voting followed a bruising period for US stocks – the S&P 500 fell nearly 7% in October for tis worth month since 2011

–        This time around, investors will take their cue from the US Federal Reserve, trade talks with China and the health of the US economy and corporate America, as a divided Congress diminishes the prospects for further fiscal stimulus

–        A drop in corporate tax rates has helped to power back-to-back quarters of earnings growth surpassing 20% in 2018, a hurdle that will be hard to eclipse next year, and economists have trimmed their forecasts for US economic growth in 2019

–        The outlook for an infrastructure package is more mixed

–        Trade tensions with China remains a major concern for the market and an embattled Trump administration could decide to double down on the electorate-pleasing measures against Beijing – especially as battle lines for the 2020 elections start to firm


Answer: (1) A fee-free checking account (Prof Note: NEVER pay bank fees!  I just got off the phone with my bank over a $72 overdraft fee (they are refunding it).  Yes, I absolutely overdrew an account (I have 30+) due to timing of payments BUT the credit line should have kicked in with no fee.  Interest is a cost of doing business; a fee is grand larceny! J); (2) A debit card (Prof Note: I have NEVER had a debit card in my life.  Why have one?!); (3) A high-yield savings account; (4) Health insurance and a health savings account; (5) Homeowners or renters insurance; (6) Auto insurance; (7) Disability insurance; (8) Life insurance; (9) A retirement fund; (10) A college savings account