|Here’s a quick recap of the important news of the day …
|“It’s good to see Apple trying to find its groove again after a period of product stagnation.”|
Apple has so much dough, that a couple billion dollars is chump change in the grand scheme of things. But analysts believe the deal could help boost Apple’s presence in the music business beyond its aging iTunes song and video purchase platform. Me? I think I’m going to have to ask my junior analyst about this one! But in the meantime, it’s good to see Apple trying to find its groove again after a period of product stagnation. Throw in the big dividend and buyback increase, and you can see why investors are starting to warm to the stock again.
So how about you? Is this a transformative deal for Apple? Or is the company grasping at straws? Do you like the outlook for consumer tech right here … or are you worried about whether spending will hold up? Let me know at the blog.
|OUR READERS SPEAK|
Speaking of the blog, Reader P.V. B. sounded off on the central bank policies we’re stuck with these days, and how he is defending himself against the Fed’s alchemy. His warning?
“The Fed can devalue all your paper-based assets in the twinkling of an eye or presidential stroke of the pen. Removing your wealth from the current system and converting it into tangibles effectively puts you into control again … . redeem the tangibles assets as needed as wacko as it sounds. Prices can and will be manipulated with precious metals but they cannot physically reduce the weight of tangible assets at the end of each day. This sort of wealth is irreducible.”
I’m a fan of having some money in gold and other tangibles, too. But the yellow metal largely has been treading water for several months, and until that pattern changes, I don’t recommend going too overboard!
Reader Gene M. may be a Broncos fan (LOL). But I’m always willing to answer questions like his — even if I think Tom Brady has the edge on Peyton Manning! He wanted to know why I’m comfortable with Sunoco Logistics (SXL) because of its “small trading volume.”
Gene, I’m showing a three-month average daily trading volume of around 190,000 shares. That’s plenty liquid for me, even if it’s a lot less than you see with big names like Apple. The stock also shows very few crazy opens, closes and major spikes or declines on the daily chart, which is what you sometimes get with illiquid ETFs or stocks.
Finally, Reader Ed asked if I could “give us your educated guess about the “new global currency’ which looks like it would be the IMF SDRs and how much do you think the dollar will be worth?”
Ed, I find it hard to believe that the powers that be in Washington, Berlin, London, or anywhere else will give up the power of the purse completely. That’s what would be required as part of any proposal to roll out a world currency.
Look, the euro has been enough of a mess, and the currency union almost fractured completely a couple years back. So while we may see regional economic cooperation or currency blocs form from time-to-time, I’m skeptical there will ever be a “global” issued!
As for the dollar and its value, I know our country has plenty of problems. But for this year at least, I think it wins the “ugly contest” against the other major alternatives like the euro!
Any other thoughts on that topic? Or any of the others we’ve covered? Hit the blog and let me know!
|OTHER DEVELOPMENTS OF THE DAY|
Not all deals end in merger heaven. The $35 billion deal between advertising giants Publicis Groupe (PGPEF) and Omnicom Group (OMC) just fell apart. Tax, regulatory, and power-sharing problems appear to take the blame.
You know that plunge in trading volume and revenue that I highlighted at investment banks like JPMorgan and Barclays? A key force behind it is plummeting volatility in stocks and bonds … and that plunge is a side effect of central bank market manipulation the world over.
One key measure of bond volatility has sunk to a level that’s 38 percent below its long-term average. Heaven help us when central banks lose control of the market again … just like they did in the mid-2000s!
Russian President Vladimir Putin set foot in the Crimean peninsula for the first time since his shadow forces annexed it from the Ukraine several weeks ago. He also oversaw massive military parades and demonstrations in Russia. Why do I suddenly want to watch “Hunt for Red October” again?
Noah was the most popular boy’s baby name in 2013, while Sophia came out on top for girls. Liam was number two on the boy’s list — but I’m secretly hoping hope that’s not because he’s one of the members of the One Direction band my 8-year-old and 11-year old daughters like so much!
Reminder: If you have any thoughts to share on these market events, don’t hesitate to use this link to put them on our blog.
Until next time,