Topley’s Top Ten – September 4, 2019

Author

Matt Topley
September 04, 2019

1.ISM Manufacturing Index Dropped Below 50….New Orders Fell to 2012 Levels.

TheAugust ISM Manufacturing PMI report unexpectedly dipped below 50, whichindicates a contraction in factory activity.

2.The Job in Manufacturing Jobs U.S.

3.History of Down August.

LPL

A roughAugust has been typical, and history shows stocks have overcome the volatility throughthe rest of the year. As shown in the LPL Chart of the Day,Why Lower Stocks In August Could BeBullish, returns the rest of the year have been quite normal after adown August. To reiterate, the rest of the year has been higher the past 15times the month of August was lower.

4.Gold and Bonds Won August.

From Dave Lutz Jones Trading

5.Contributions of Dividends to Total Return.

TopDown Charts

6.‘Big Short’ investor Michael Burry predicted the housing crisis. Now he’s calling passive investment a ‘bubble.’

Ben Winck Aug. 28, 2019, 01:36 PM Jim Spellman / Getty Images

The investor Michael Burry rose to fame by shorting mortgage securities ahead of the 2008 housing meltdown.

His wager was heavily featured in Michael Lewis’ bestselling book “The Big Short,” and Christian Bale portrayed Burry in the 2015 film adaptation.

Burry told Bloomberg he saw passive investment as a “bubble” that leaves smaller companies ignored.

The investor said exchange-traded funds and index-based assets focus on larger companies and leave smaller-value stocks “orphaned” around the world.

His firm, Scion Asset Management, recently announced active investments in three small-cap companies in the US and South Korea.

Thefamed investor Michael Burry told Bloomberg hesaw passive investment strategies as a “bubble” that ignoressmall-cap stocks.

Hiscomments are pegged to the fact that exchange-traded funds and index-basedassets mostly focus more on bigger, moreestablished companies. As investors find this passive investmentincreasingly appealing, smaller growth stocks are languishing in thebackground, Burry said.

“Thebubble in passive investing through ETFs and index funds as well as the trendto very large size among asset managers has orphaned smaller value-typesecurities globally,” he told Bloomberg in an email.

Healso said he was interested in small-cap companies since there isn’t a“critical mass of smaller value-seeking active managers like me” tohelp bring other investors to the table.

Burryrose to fame after betting against mortgage-backed securities ahead of the 2008financial crisis. The unconventional trade netted Burry millions and wasdocumented in Michael Lewis’ bestselling novel “The Big Short.” Thebook was adapted into a 2015 film of the same name, with Christian Bale playingBurry.

ThoughBurry’s fame originated from a short trade, he told Bloomberg he was moreinterested in “long-oriented investing in undervalued and overlookedsituations.” His firm, Scion Asset Management, recently revealed largeactive investments in three small-cap companies in the US and South Korea.

“Thereis all this opportunity, but so few active managers looking to takeadvantage,” he said.

Theinvestor announced a long position in GameStop earlier in August,telling Barron’s thatthe company’s balance sheet “is actually in very good condition.”Burry added that a decision to include disk drives in next-generation gameconsoles would “extend GameStop’s life significantly” as peoplecontinue to purchase physical games.

Scionowns 3% of GameStop’s shares outstanding and manages $343 million in total.

7.The Drop in Pensions.

8.The Spike in Hongkongers Not Identifying Themselves as Chinese.

You will find more infographicsat Statista

Fewer People In Hong Kong TendTo Identify As Chinese

Meanwhilethe share of people identifying as Hongkongers has increased dramatically overthe last decade, hitting 53 percent in 2019.

9.New York and New Jersey Cities Among the Worst to Drive in, Study Reveals

PublishedSep 3, 2019 at 6:30 PM

  • WalletHub took a look at the 100 largest cities in thecountry to determine the best and worst cities to drive in

  • It turns out that a few local cities have the distinction ofbeing among the worst, the study revealed

  • Two of New Jersey’s largest cities placed among the worst,as did NYC, according to the ranking

Betweenthe traffic and the expenses associated with having a car, driving is anecessary hassle for many people.

A recentstudy confirmed what many in New Jersey and New York hold to be true – drivingis a major headache.

WalletHubtook a look at the 100 largest cities in the country across 30 key indicatorsof driver-friendliness to determine the best and worst cities to drive in. The keyindicators ranged from average gas prices to annual hours in traffic congestionper auto commuter to auto-repair shops per capita. These key indicators werethen divided into four separate rankings – cost of ownership and maintenance,traffic and infrastructure, safety as well as access to vehicles andmaintenance. The four individual ranks comprised the overall rank of aparticular city.

It turnsout that a few local cities have the distinction of being among the worst basedon the data compiled.

10.3 Keys to Mastering the Art of Consistency

By SimonT. Bailey | August 27, 2019 | 0 

Oftentimes,we think success is about doing things over and over again until we finally seeresults. But if you’ve ever been in a rut, you know that’s not always whatworks.

To reallysee upward movement in your life, you have to learn how to create a consistencycocktail. Consistency is made up of three key ingredients and, like any goodcocktail, they should not be used in equal amounts.

Ingredient 1: Walking the Walk

This firstingredient makes up the largest part of your cocktail. “Walking your walk” (andnot just “talking your talk”) describes the little steps you take throughoutthe day that breathe life into your values. It’s not enough to just say youhave values. You actually have to live them out in the small moments that makeup your day.

For example,one of my core values is caring for the least, the last, and the forgotten.This shapes how I talk to people, what projects I accept, and the way I investmy money.

Ingredient 2: Connecting to YourWhy

Constantlyreminding yourself of the meaning, the why behind your actions will allowyou to power through even when you’re tired, stressed out or unmotivated.

I am caringfor my health better than I ever have, and it’s because I am more connected tomy why: I want to stay fit so I can live for a long time for my children andtheir children, not because I want to look good in photos. Once you make thismental shift, everything will change.

Ingredient 3: A Little Disruption

This is themagic ingredient—you just need a pinch of it. Consistency without disruption issimply a routine. Disruption means moving from the status quo to the cuttingedge.

I am a hugebeliever in conducting a self-review every 90 days. That period of time is longenough to ensure you’re not jumping from goal to goal, but it’s regular enoughto keep you from getting into a rut.

During yourself-review, ask yourself: What have been my major successes in thepast three months? How have I moved forward? Am I still moving in the directionI want to go? Is there a better way to do things?

Mixedcorrectly, this cocktail will allow you to develop confidence and become morepurposeful with how you use your time and energy.

This articleoriginally appeared in the September/October 2019 issue ofSUCCESS magazine.Photo by @kurteggering via Twenty20