- Shares bounce, euro fades after savage ECB reaction (Reuters)
- Trump's Islam comments draw attacks as Republicans discover civility (Reuters)
- Oil Prices Rise on Hopes Glut Will Ease (WSJ)
- IEA Says Oil Price May Have Bottomed as High-Cost Producers Cut (BBG)
- Why Euro-Area Inflation Will Be Low for Years, According to Draghi (BBG)
- Calmer markets, positive data prime Fed to push ahead with rate rises (Reuters)
That the world's largest hedge fund, Ray Dalio's Bridgewater, just announced the appointment of an hardware engineer, even one as enlightened as former NeXT and Apple executive Jon Rubinstein, should tell you all you need to know about what is really going on in the "market."
No wonder we're devolving into a society of a few privileged haves and a vast populace of marginalized have-nots: the system has failed, but we can't even talk about it.
"To think that Apple won't allow us to get into her cell phone," Trump said on Fox and Friends Wednesday morning. “Who do they think they are? No, we have to open it up." As the Hill reports, Trump argued vehemently that Apple should help investigators crack the phone’s encryption system. "Apple, this is one case, this is a case that certainly we should be able to get into the phone."
While we applaud Cook's rebeliousness, we wonder just how much of it is only for show. After all as Snowden previously revealed, the NSA already has full access to all the iPhone data it needs.
The bottom line is that Apple lost its founder, its leader, its passion, and its way. Get used to a double-digit stock. It's got much lower to go.
The global economy has had its artificial boom and CapEx frenzy already and years of deflationary liquidation and correction lie ahead. Money printing has failed. Any effort by the central banks to double down on another $20 trillion of bond purchases would blow the world’s financial casinos sky high. Contemporary central bankers function like a team of monetary wranglers, herding the retail cattle toward the asset gathers. At the end of the day, the asset gathers will profoundly regret what they are clamoring for.
"I find the whole thing astonishing and what’s remarkable is the amount of anger whether it’s on the Republican side or the Democratic side..."
There is a game that goes on in the market with IPOs, and I will lay it out here.
"If I were a returning jihadi, I would smuggle myself in amongst this group; you would easily get lost." "That's the most ridiculous thing I have ever heard".
One month ago, Credit Suisse confirmed what we had reported in the previous several weeks, namely that according to channel checks, iPhone supply chain orders had weakened recently adding that "in our view, the continued weak supply chain news could weigh on Apple shares for the next few weeks/quarters." The market did not like the news and sold AAPL stock only to promptly BTFD as it always has in the past 7 years: after all any transitory weakness is merely an opportunity to buy, right? Only this time the weakness may not be transitory, because as of this morning we now have not one but three updated channel checks all pointing to a substantial slowdown in AAPL's flagship product and core revenue generator, the iPhone.
The institutional academic system is broken. We need less systemic, traditional education that only provides knowledge of low utility and more alternative education that provides the right high-utility knowledge to thrive during today's global currency wars.
Looking back at the build up and the let down on the Theranos story, the recurring question that comes up is how the smart people that funded, promoted and wrote about this company never stopped and looked beyond the claim of “30 tests from one drop of blood” that seemed to be the mantra for the company. While we may never know the answer to the question, Aswath Damodaran offers three possible reasons that should operate as red flags on future young company narratives...