For some time, both the quant version of these endeavors and the macro-economic version have harped on the quite apparent lack of investing in real assets. Corporations are sitting on $2+ trillion just overseas. QE money has largely gone to financial instruments. True innovation in physical widgets has clearly stalled: the best new thing is Force Touch on an iPhone?? Really?
The CxO class just can't seem to find creative ways to allocate fiduciary capital to physical form. I found this HBR piece recently and was going to write it up. Nah, just go read it. The bottom line, so to speak, is that the Masters of Wall Street are extorting the CxO class to put moolah into fiduciary, rather than physical, investment. The United States of Bermuda.
Well, even Yahoo! Finance (am I the only one to view that as oxymoronic as "happily married"?) now gets it. Real value in an economy comes from physical investment in productive processes. Finance and real estate and insurance (FIRE, as it's known) are just ways to skim moolah off the transfer from savers to borrowers. All their profit comes from extortion. The American Way.
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