Graduation season starts this month. Thousands of young people will soon receive a diploma in one hand, and a notice to start repaying their student debt in the other. (There’s now more than $1 trillion in student debt outstanding.) At the same time they’ll find themselves competing in the jobs market with graduates from previous years: research shows that almost 54% of newly graduated bachelor’s degree-holders under the age of 25 last year were jobless or underemployed, the highest share in at least 11 years. The message is getting clearer by the day: we urgently need to rethink the kind of education that we encourage young people to pursue, and the costs and returns thereof. How do we give young people entry-level access to challenging professions that will allow them to earn adequate lifetime incomes? Technology and entrepreneurship belong to this category. Does investing belong there as well? Continue Reading
Show of hands: assuming that you have a pension fund, how would you like it if your old age money was invested in something called the “walking dead”? Sound good?
The “walking dead” is how investors are referring to companies that were leveraged to the hilt by a Romneyesque retinue of private equity firms. Their bonds are very much in junk territory, and they’re now rallying because investors can’t find enough returns elsewhere. Continue Reading