Links

I had posted a link to the videos before, but here's the full show of... Ray Dalio on Fed Policy, Hedge Funds, China (Full Show from 09/16/2015) [H/T Exploring Markets] (LINK)

Ray Dalio, Bridgewater Associates' chairman and founder, talks to Bloomberg's Tom Keene and Mike McKee on the eve of a critical U.S. Fed policy decision in "Bloomberg Surveillance Primetime" special. What does the head of the world's biggest hedge fund firm have to say about the domestic economy, the future of China and the volatile market? 

The Absolute Return Letter, October 2015: The Real Burden of Low Interest Rates (LINK)

Almost the entire world is concerned about the high levels of debt, should interest rates begin to rise again, but we are not. Don't get us wrong; a meaningful increase in debt service burdens could do substantial damage to a global economy so loaded with debt. We just don't think it is going to happen. 

Economic growth and inflation are likely to stay comparatively low for many years to come, and so are interest rates, but that raises another question. What damage can very low interest rates for an extended period of time actually be expected to do?

Sohn Canada Investment Conference Notes 2015: Capitalize For Kids (LINK)

McKinsey warns banks face wipeout in some financial services (LINK)

The digital revolution sweeping through the banking sector is set to wipe out almost two-thirds of earnings on some financial products as new technology companies drive down prices and erode lenders’ profit margins. 

This is one of the main predictions by the consultancy McKinsey in its global banking annual review to be published on Wednesday, portraying banks as facing “a high-stakes struggle” to defend their business model against digital disruption. 

McKinsey said technological competition would reduce profits from non-mortgage retail lending, such as credit cards and car loans, by 60 per cent and revenues by 40 per cent over the next decade. 

It predicted a smaller, but still significant, chunk of profits and revenues would be lost from payments processing, small and medium-sized enterprise lending, wealth management and mortgages. These would decline between 35 and 10 per cent, McKinsey said. 

Philipp Härle, co-author of the report, said: “The most significant impact we see in price erosion, as technology companies allow delivery of financial services at a fraction of the cost, and this will mostly be transferred to the customer in lower prices.”

Investing in Commodities - by Paul Lountzis (LINK)

Given the recent declines in a broad range of commodities, we are often asked about our views on investing in that space. We have always felt that one of the most challenging areas to invest in are companies in the commodity sector, which includes many diverse areas, such as energy (oil, gas), agriculture (corn, soybeans, wheat), and hard assets (iron ore, copper, lead). According to Kessler Companies, commodities are at new 13 year lows and are off 25% over the past year, and lower than their 2008 trough by 6.2%. If you had invested in the Bloomberg Commodity index in January 1991, you would not have made any money for 24.5 years

Trade Secrets From Two Investing Legends - by Chris Mayer (LINK)

Einhorn Has Brutual Q3, Down 16.9 Percent Year To Date (LINK)

Fred Wilson: A Different Approach To VC (LINK)

The future of cryptocurrencies: Bitcoin and beyond (LINK)

Why Aren’t America’s Shipping Ports Automated? (LINK)

Related book: The Box

Book of the day: The Making of a Blockbuster: How Wayne Huizenga Built a Sports and Entertainment Empire from Trash, Grit, and Videotape