Charlie’s month-end reading list

5 books with an apple on top

We hope you have been finding the articles included in our monthly reading lists to be of interest. This month we’ve selected pieces on a variety of topics, from health care to high-speed trading. Enjoy!

“What Health Insurance Doesn’t Do,” in this op-ed for The New York Times, Ross Douthat looks at health insurance coverage and its affect on overall health. The piece details a study, which concluded that more comprehensive coverage doesn’t necessarily equate to better health, although it does relieve the burden of higher medical expenses. The piece offers a common sense look at the system.

Recently, The New York Times published a piece by Paul J. Lim titled, “Rebalancing a Portfolio? Don’t Break the Seesaw,” which gives readers insight into basic portfolio rebalancing options. At Fort Pitt, we believe that periodic rebalancing is essential when taking a long-term approach to investing. Check back to our blog in the coming weeks for a look at how we approach rebalancing for our client portfolios.

The Wall Street Journal highlighted a trading loophole in an article titled, “High-Speed Traders Exploit Loophole,” which was published earlier this month. We took issue with proponents who say, “Eliminating the ability of parties in a trade to get information slightly in advance could lead to less-liquid markets because some firms would be inclined to trade less due to the greater risks.”To us, this is like saying: “If I’m not guaranteed to make money on every trade because of my technical advantages, I’m not going to trade.”The rest of the market (who by definition loses out on every trade with these guys) should be saying, “Good riddance!”

We found “Art Cashin Warns Bernanke Fans ‘Be Careful What You Wish For On the Deficit,’” from one of our favorite sites, zerohedge.com, important to highlight. The post features commentary from Art Cashin of UBS on potential deficit decreases and the subsequent effect on bond prices.

Visit Ramparts in June for the next installment.