The only way fend off is to develop/expand Yahoo!Finance into a finance and investment platform. Should have started some market research ASAP on implementation. This new entity should improve profit margin as well. Make some visits to Wall Street firms and check out what they think.
a similar investment arm to Alibaba's, but in much larger scale and covering much more sophisticated instrument.
When a country's economy improves, weapons become a necessary investment. China is a good example. With tensions are accumulated, defense is a necessity. Less secured feeling, more weapon sales. We can add more pressure, but don't break the string. I want to emphasize this with a forte after Republicans take over the Congress. This applies to all weaponry producers.
As oil price is going down, Tesla can hardly make it. Who would spend $70K for an electric car while BMW 7 series cost only 74K.
the best hedging instrument to currency is currency itself. The same rule applies to stocks and bonds. One can hedge on gold with gold as gold market fluctuate time to time, which was proven being flexible on manipulation. But its return remains minimal even during the last bull run of gold. Why? Gold has nothing to do with economy on a broad base as economic growth rate can be much higher than demand on that of gold consumption. Even during a typical bear market, returns from hedging sectors can yield higher than buying gold. The demand for gold is and will be pressed for many good reasons. The more educated, the less gold consumption. The more technologically advanced, the less gold consumption. The larger the aging population, the less gold consumption. Youth population nowadays are kept themselves away from gold consumption because it is regarded as uncivilized. Clearly, the gold "bulls" needs GOLD class campaigns to persuade them.
There was, and remains "popular' theory that gold helps Chinese yuan turn into a reserved currency. If so, Japan ought to hold significant amount of gold. Obviously, it is not the case. Why? Gold can't measure goods value from place to place, from labor to labor, from culture to culture, from input to input if gold is a special reserve currency. But many gold investors don't accept this. It's OK to me if such ignorance can be legitimately manipulated to make profit. And it was proven a success. Can it be manipulated again? Yes, gold is a kind of soft metal, but not in near future.
Just don't ever think I am taking advantage on "lower" gold price. My prediction was $80 on GLD. Now, I think $50 possible.
as index of purchasing power for middle class. I expect this shopping season stronger than last year. This is one of the evidences. There is no reason for any sell off. Tomorrow will take it by itself, oil.
return on equity tells the rest of the story.
When XOM and CVS report on Friday, they would have found they sit at the bottom already, nowhere to go but up.
I don't think you understand Amazon's business model. Its existing core business will not make profit and advertisers/merchants will build up their Ads campaign if their sales volume are significant enough. Smaller ones will stay with Amazon. With gasoline price going down, more shoppers will drive to malls. Amazon's advantages from tax to shipping are gone. What left in this model are advertising, which can be fulfilled by Google and Yahoo. Its cash flow is for its own product development. Wall Street understands the key is Amazon's investment into its own product to make profit since traditional retailers' margin are limited to the edge of nada. Here we go again and again with Amazon on its own product development. So as we conclude how this model is finishing in the end. Alibaba shares the same model. The difference is shadow banking unit keeping cash flow (not free cash flow). We are watching this flow carefully in order to avoid the same trap of Amazon. Besides, Alibaba has a new hobby in investment of movie production, which is expensive and risky. Considering Chinese movie market, this investment may work for a while for a fading American flavor. I would watch this initiative carefully. The knockoff part of Alibaba will eventually be forced out.
In conclusion, we shall see more independ internet sellers/merchants by themselves to take advantage in tax. Thanks to Amazon and Alibaba for incumbency of smaller bizs. As an investor, you need to watch their investment initiatives.
no attachment is required.
send DOW over S2 but below S1, or 16894. October's pivot line is at 17109, where I can expect another round of profit taking before Thanksgivings. DOW falls into a technical trading range. After all, S&P's p/e is back to the expansion mode. The argument from sell side is weak sales/revenue while the bulls focus on decent earnings. The fact is that corporate America has an ultra strong balance sheet to sustain another global recession starting in 2015. I would pay more attention to domestic economy with a big question mark on how big they as a cluster could be from stock market volume perspective by % of sales from global market (or other than the US economy.) Say, Yahoo has majority of sales from the US, I prefer to stay with my holdings and adding more. IBM had some problems from China due to the fact that Chinese government has suggested a ban on its products and China has been a big customer of IBM server. Microsoft will be less impacted because its sales from China has been in embarrassedly low volume since the start (I have to LOL since it's embarrassedly disproportioned with number of trips Mr. Gates has paid visits to China). MCD got a black eye from its supplier and will not do well in China in near future. CAT? no bounce in China no matter live or dead. The rest is in pharma. Not bright either.
In conclusion, I think it is good time to inject new blood into DOW by replacing some of the components.
It provides comfort on geo-expansion. If food is good for millennia, it is good for their parents. I mean the portion of one order is a little small for me, but two is waste of half. I did realize a bigger pancek might not be heated well, but an order in bowl should solve the issue. Price wise has some rooms. I think $10 of an order is fair price if its size goes 1.5 times bigger.
exercising options of 40 MM shares at 2.59 gave a fair price marking. I am accumulating put option volumes with my Citi's $2000 per month. What am I going to lose? LOL.
They are the drivers of F-150 and nothing else. Bears have the case.
facing another deflation cycle. Innovation is pretty much stopped for a while. M/As can't run forever. The next support to the market or economy is corporate tax code change. So, here comes a big question along with a big economic model, that is, how much tax revenue were vipered during the last crash. The result should include deficit and printed cash for deficit spending. I think it's about 2-3 trillion. Can our government handle a P/L statement as such? Depends on who do you ask. Our voters are not well educated in this regard by any standard.
RE is crashing. Is this still myth on the last housing bubble? A Bubble I mean the deflation killed the housing market other than an "artificial" financial crisis itself. I guess that most of you on Wall Street still don't know what have caused the last market crash. This is not running into a circle of egg or chicken, but parent-child relation. As economy was "over heated" (quoted because it is wrongfully illustrated), the new economy is getting stronger, so it's "over and over heated"? Of cause not. As a brand new product gets worn out, deflation in price shows its path out of the door. At sometime, Ben mentioned deflation is more difficult to be corrected than inflation. I think the last crash offers a fresh lesson in this topic. Obviously, you just don't get IT!
hike expectation should be higher or lower at this point. The myth is higher rate doesn't help RE (RE=real estate) by mathematical value, other than financial value due to expectation of inflation and we know that RE is good at countering inflation. If so, what else stocks share the same virtue?