Apple is the Ty Cobb of corporate America. Like Cobb, Apple has set some impressive records. Nine years, a trillion dollars in sales, and almost no taxes paid. Apple risks having a legacy of tainted success and isolation.
While preserving the farce of the S&P's relentless rise no matter the earnings recession, the 1% GDP or the negative funds flow, has been entirely a central bank mandate in the past month (one which will soon inlude the PBOC), the good news for the BOJs and the NYFeds of the world is that the stock buyback hiatus is almost over, and starting this week the bulk of companies can come right back and proceed to repurchase their stocks at all time highs. And what a come back it will be. According to Goldman, the pace of buybacks is now absolutely off the charts, with nearly $1 trillion in buyback announcements expected in just this calendar year, a mindboggling number, one which is the same size as the largest annual Fed Quantiative Easing amount in any one year going back to the great financial crisis.
No sector will be immune to the changing nature of work and value creation. The only sustainable way to avoid upheaval is to learn to create value in ways that cannot be commoditized.
Being grateful boosts your happiness. Here are ten sickening wonderful things we're grateful for in the new normal...
Having previously explained the 175,846,629,768 reasons why former Fed Chair Ben Bernanke would join Citadel - the most-levered hedge fund in the world and alleged conduit of fed put protection; we thought it intriguing to note what billionaire Citadel Ken Griffin had to say about Bernanke and his policies just 2 years ago...
The severe limitation of human robot jobs is that they rarely offer much opportunity to learn a wide variety of skills--precisely what enables us to create more value with our labor.
Wall Street turns junk-rated US corporate loans into highly rated yen-denominated bonds. Desperate Japanese pension funds gobble them up. Blame the Bank of Japan.
"We're Living In A Gambling Society" BlackRock's Larry Fink Urges CEOs To Stop "Short-Termist" ThinkingSubmitted by Tyler Durden on 04/14/2015 17:00 -0400
As the ongoing collapse in economic productivity continues in America, and Alan Greenspan's concerns grow, the call for an end to the diversion of corporate spending to instantly shareholder-friendly actions comes from an unusual source. Larry Fink - CEO of the largest asset manager in the world - has unleashed a letter to 500 CEOs around the world - telling them that "the effects of the short-termist phenomenon are troubling both to those seeking to save for long-term goals such as retirement and for our broader economy,” bucking the dividend/buyback trend that investors are demanding. As NYTimes notes, the shortsightedness that pervades corporate America is just a symptom of a larger issue. "This is not just a corporate problem," Fink explains, "It's a societal problem, we’re currently living in a "gambling society."
"A slow start to the week has become customary, as Monday appears to have become the new Friday," Barclays says, noting that the humans simply aren't trading in a credit market where opportunities are scarce. Meanwhile, the robots do not rest, and on the Monday they simultaneously decide that some random data point or unduly hawkish/dovish soundbite out of an FOMC voter is cause for all the algos to chase down the same rabbit hole sending ripples through a fixed income market devoid of any real liquidity, the humans will be in for a rude awakening when they get to work on Tuesday morning.
Stan Druckenmiller's "Horrific Sense" Of Deja Vu: "I Know It's Tempting To Invest, But This Will End Very Badly"Submitted by Tyler Durden on 04/12/2015 19:45 -0400
“I just have the same horrific sense I had" before, Druckenmiller said to an audience at the Lost Tree Club in North Palm Beach, Florida (according to a transcript obtained by Bloomberg). "Our monetary policy is so much more reckless and so much more aggressively pushing the people in this room and everybody else out the risk curve that we’re doubling down on the same policy that really put us there."
Corporate profits are back at the levels reached in 1990, 1999 and 2008 that presaged recessions and a sharp downturn in sales and employment.
- Political Battle Ramps Up Over Iran Nuclear Deal (WSJ)
- Greece moves to quell default fears, pledges to meet 'all obligations' (Reuters)
- Isolated Greece pivots east to Russia, China and Iran. But will it work? (Telegraph)
- Frustrated officials want Greek premier to ditch Syriza far left (FT)
- Greek political unrest and deepening debt crisis fuel talk of snap election (Guardian)
- Rand Paul’s Challenge: Charting His Own Course (WSJ)
- In Greenspan Conundrum Redux, Odds Are on Bond Traders’ Side (BBG)
- Yemen's Aden suffers amid clashes, aid deliveries delayed (Reuters)
- Record Gasoline Output to Curb Biggest U.S. Oil Glut in 85 Years (BBG)
If America is the Land of Opportunity, why are so many parents worried that their princeling/princess might not get into the "right" pre-school, i.e. the first rung on the ladder to the Ivy League-issued "ticket to the upper middle class"? The obsessive focus on getting your kids into the "right" pre-school, kindergarten and prep school to grease the path to the Ivy League suggests there aren't as many slots open as we're led to believe.
Every dystopian sci-fi film we’ve ever seen is suddenly converging into this present moment in a dangerous trifecta between science, technology and a government that wants to be all-seeing, all-knowing and all-powerful. Having already used surveillance technology to render the entire American populace potential suspects, DNA technology in the hands of government will complete our transition to a suspect society in which we are all merely waiting to be matched up with a crime. No longer can we consider ourselves innocent until proven guilty.