What lies behind Putin’s bravado may be unclear, but it has re-clarified NATO’s raison d’etre. Why stocks and bonds could both fall foul to inflation. A net 0 to do list for and from world business leaders. A life free from any pain is probably also lacking purpose. What differentiates hope and optimism? Unlike optimism, hope doesn’t deny pain, but recognises it and makes something of it.
QUOTE OF THE WEEK
ARTICLE OF THE WEEK
Eliot Cohen, Putin’s No Chess Master
(The Atlantic, 26 January 2022)
Is Putin’s bravado a sign of strength or a sign of weakness? Experts and pundits offer widely different opinions, and this article does a good job at offering some nuance. First, it is important to emphasize that Ukraine is a problem for Putin not because it wants to join NATO, but because it is slowly democratizing. Second: Putin has given NATO a gift – the Alliance’s identity crisis is gone and no member questions its necessity (with new ones wanting to join). As Cohen explains and asserts: “In many ways, what we’re seeing now from Moscow is a spasm of atavistic postimperial assertion, which, rather like British and French intervention in Egypt in 1956, may begin well but will probably end poorly” (metered paywall with registration required – reads in 7-9 min).
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Nouriel Roubini, Inflation Will Hurt Both Stocks and Bonds
(Project Syndicate, 26 January 2022)
This is an interesting take on the longstanding negative correlation between stock and bond prices. Roubini observes that it is an artifact of the low-inflation environment that has prevailed over the past 30 years (because when inflation rises, returns on bonds become negative as rising yields, led by higher inflation expectations, reduce their market price). Should inflation and inflation expectations continue to rise, he asserts that investors will have to rethink their portfolio strategies to hedge against the risk of massive future losses (metered paywall – reads in 6-7 min).
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Linda Lacina, Predictions 2022: CEOs and top leaders share tactics that will speed the net zero transition
(World Economic Forum, 21 January 2022)
A Davos outcome about how some CEOs recommend accelerating the transition to net 0. Some ideas: (1) Incentivize – and support – clean hydrogen; (2) Take pledges and commitments further; (3) Look beyond net zero finance; (4) Embrace new approaches to collaboration. Read on! (Free access – 6-7 min)
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Paul Bloom, Hedonism is overrated – to make the best of life there must be pain, says this Yale professor
(The Guardian, 23 January 2022)
Contrary to the belief that we are driven by hedonism (the pursuit of pleasure and comfort), the famous psychologist asserts that the most satisfying lives are those which involve challenge, fear and struggle. The reason is this: “we don’t only seek pleasure; we also want to live meaningful lives” which involves willingly experiencing pain and anxiety. We therefore see value in chosen suffering, and “people who flourish tend to be those with meaning in their lives” (free access – reads in 7-9 min).
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David Feldman and Benjamin Corn, Hope is not optimism
(AEON, 20 January 2022)
On the difference between hope and optimism, as seen by an oncologist and a psychologist. Optimism is the tendency to believe that outcomes in life will generally be positive, favourable or desirable – seeing the glass as half full. Hope isn’t the same as glass-half-full thinking, however. It is applicable even when the glass is only a third full or has nothing in it at all. “That’s because true hope isn’t about living in a fantasy world; it’s about living in this one. For instance, it doesn’t deny suffering and pain.” The conclusion: “when people have hope, their goals are more likely to become reality.” Hope is indeed a call for action and “active hope is the psychological engine that drives efforts to bring about important goals” (metered paywall – reads in about 10 min).
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