Randall’s been off a couple weeks. Really in form in the Sept 13 issue of Barron’s. Leads off with Derick Jeter’s admission to the Baseball “Hall of Fame”. Next, Forsyth bemoans that similar honors have been denied baseball legends Barry Bonds (for steroid related crimes) and Pete Rose (for betting on games he was managing). From there Forsyth pivots into a couple apparent “conflicts of interest” by two fed officials who are (or have been) instrumental in setting monetary policy.
“However, in this age of legalized gambling, down to having betting windows at Wrigley Field, Rose's ban looks ridiculous, wrote Chicago Sun Times columnist Steve Greenberg this year. Assuming that everybody in the stands and betting on their phones from home have access to the same information, they can lose their money fair and square. Compare that to the actions permitted for Federal Reserve Bank presidents. This past week, The Wall Street Journal reported that Dallas Fed President Robert Kaplan actively traded stocks last year. And Bloomberg disclosed much the same about Boston Fed President Eric Rosengren, whose favored investments included estate investment trusts, a highly interest-rate-sensitive sector. Both said they had complied with their respective bank's code of conduct.”
Where are the markets headed? Forsyth isn’t sure. In a reference to Broadway’s Hamilton he says that if you’re not “In the room where it happens“ (a backhanded reference to the Fed officials) you’re at a distinct disadvantage when it comes to managing your own money.
Source: Up and Down Wall Street - Stocks Could Soon Correct. Or not. by Randall W Forsyth
(Taken from print edition. If you can locate an online version of Forsyth’s column please link it.)