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Time To Ramp Up The War Against COVID-19 - By Michael Posner
"Echoing bipartisan calls from governors across the country, they urged the federal government to “take extraordinary steps” to lead in the production, coordination, and distribution of essential medical equipment for hospitals nationwide. While some business leaders have bristled at this kind of intense federal intervention, the size, scope, and urgency of the crisis underscore the need for President Trump to take bold measures, which, thus far, he has declined to do."
—— Opinion
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Value Investing In The Time Of COVID-19 - By Baruch Lev
Many investors, institutional and individuals, are dumping stocks these days. But some argue that this is the time to go against the grain and play the stock market smartly. Not surprisingly Larry Kudlow, Director of the National Economic Council, said recently that long-term investors should “very seriously” look at buying the dip in stocks. Others, like Mark Cuban, urge long-term investors not to sell into the panic. For all those who see an opportunity in the current depressed market, the question is: What to buy? Or, at least, how might one better position their portfolio?
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My ‘Greed-Oriented’ Algorithm is Telling Me to Buy Stocks - By Vasant Dhar
"Algorithms offer useful, unemotional information during times of panic. While exact market bottoms are difficult to predict, the market will recover. The question is when, and how do I leverage the current opportunity to potentially see large returns when it does?"
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Not Concerned with COVID? That's Your Bias Speaking - By Priya Raghubir
No one is immune. Despite the calls worldwide to take great precautions during the COVID-19 pandemic, many people are less concerned about a health risk than they should be because they believe that negative things are less likely to happen to them than to others. This is a bias referred to as self-positivity.
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How the Federal Government Needs to Help States Get Necessary Medical Equipment - By Michael Posner
"The situation in New York illustrates the magnitude of the problem. According to Cuomo, the state needs 30,000 additional ventilators. Independently, the state has 4,000 in hand and has purchased another 7,000 on its own. Late yesterday, the federal government promised to deliver another 4,000 to New York."
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Coronavirus Is Making Business Leaders Rethink the Rules of Capitalism - By Tensie Whelan
"The coronavirus crisis brings the issue home: Should well capitalized companies lay off workers (which would benefit shareholders) or should they figure out how to support their workers and society while managing a radically changed world?"
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‘Stress Tests’ for Banks as Liquidity Insurers in a Time of COVID - By Viral Acharya
"During the last few weeks, the spread of COVID-19 has rattled the global economic prospects and financial markets. Growth and employment forecasts for the global economy have been revised substantially downward to recession levels for the next two quarters; global stock prices have declined, especially for banks and other financial intermediaries; credit spreads have surged, notably for junk-rated paper in developed economies; and central banks have reacted with substantial rate cuts and/or liquidity provision and asset purchase programs."
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Why the Federal Government Needs to Lead on COVID-19 - By Michael Posner
"Three things need to change. First and most immediately, there is a pressing need for greater coordination, burden-sharing, and transparency among the states. The federal government has the unique capacity to survey existing needs and distribute crucial supplies among the states in a rational and efficient way."
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Interfirm Rational Rivalry: Implications For Competitive Strategy - By Gavin Kilduff
Rivalries have been around for as long as we can remember – within sports, academics and business. But how do rivalries between firms impact competitive strategy and rational behavior? A new paper by NYU Stern Professor Gavin Kilduff, “Interfirm Rational Rivalry: Implications For Competitive Strategy,” suggests that managers may make decisions based upon their firms' rivalry relationships with other firms, and the past experiences that led to the formation of these rivalries, rather than in a purely rational fashion on the basis of current information.
—— Research Highlights
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The City of London Needs Equivalence — With New York - By Mervyn King
The eminent economist Bob Solow once said his profession “requires three qualities: faith, hope and clarity; and the greatest of these is clarity.” For the past four years the British view of its future trading relationship with the European Union has reflected much more of the first two virtues than the latter. Thankfully, we’re now seeing signs of lucidity. A speech last month by the U.K. trade negotiator, David Frost, was admirably clear on the subject.
—— Opinion
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Amazon’s Responsibility For Workers Facing COVID-19 - By Michael Posner
Responding to the spread of COVID-19 cases in the U.S., Amazon has joined a growing number of companies directing their executives to suspend domestic travel “until further notice.” As reported in The New York Times, Dave Clark, Amazon’s Senior Vice President in charge of the firm’s worldwide operations, told his employees that no group or team meetings requiring travel should be planned sooner than the end of April, “by which time hopefully we have a better sense of the virus, its spread and impact.” In this internal message, Clark stressed that “we are watching this situation closely with a focus on the safety of our teams.” All of this seems prudent and sensible, all the more so because two Amazon employees in Italy, and a third in Seattle, recently tested positive for the virus, which has claimed more than 3,000 lives worldwide.
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'Fixing Health Care' is a Disservice to Society - By Anat Lechner
We all know — and the presidential candidates keep reminding us at every debate and in the run-up to Super Tuesday — that our health care system is struggling to provide Americans with affordable care. While we broadly agree that health care needs to be fixed, the conversation on “how” is headed down the wrong path. Instead of looking for solutions to patch up the current system, we should think anew for higher efficiencies, lower costs and, most importantly, better outcomes.
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Access is Not Enough - By L. Taylor Phillips
New research from NYU Stern School of Business, Kellogg School of Management at Northwestern University, Marshall School of Business and Université de Paris finds that first-generation college students do not enjoy the same short- and long-term benefits from a college education as their peers whose parents went to college due to a cultural mismatch that happens early during the transition to college and persists through graduation.
—— Research Highlights
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Can China’s Economy Withstand the Coronavirus? - By A. Michael Spence
Barring such a “black swan” event, however, history suggests that the COVID-19 outbreak’s long-term effects may rather small, even negligible. This is all the more likely, because China’s economy is far from fragile.
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Markets Are Too Complacent About Coronavirus Despite Sell-Off - By Nouriel Roubini
Investors are deluding themselves about how severe the coronavirus outbreak will be. Despite this week’s big sell-off in equity markets, the worst is yet to come.
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