What a wild summer it’s been and we’re just 2/3 of the way through it. What a wild year it’s been and we’re just 60% through it. Did you know that the DJIA has had but only one 5% pull back so far this entire year. Complacency is high and fear is nigh. Be wary.
On that note, let’s run through some Revolution Investing must-read headlines for the weekend.
How to trade social-network dogs and Social Stocks Surprised Investors, FB, YELP, LNKD, Z – Do you remember who told you a million times to get in front of the coming “App Stock Bubble” (for example: How to trade the biggest stock market bubble everJuly 7, 2011)? We are in the thick of it now. I’m not a buyer of any of these names right now.
Repatriation tax holiday push resumes after Obama proposal: Goldman – This is another way to prop up the markets and the corporate economy by letting them avoid paying the same taxes that small and medium size companies do. The tech sector including Apple, Oracle, Google and Microsoft, has nearly a trillion dollars stashed tax-free overseas. Small businesses pay 30% plus income taxes and Apple should have to pay the same rate as everybody else. Won’t happen though. You watch at some point in the next downturn, the RepublicanDemocrat Regime will give a tax holiday to cash repatriation for giant corporations.
Cody Kiss & Tell: Those overseas cash balances are safe – When I first bought AAPL back in 2003 it had $7 billion net cash. Now it’s as you say about $150 billion net cash and generating tens of billions in cash flow per quarter. The multiple can stay contracted and contract further, but that cash balance and cash flow certainly provide a floor somewhere above probably $300/share as long as the cash flows don’t reverse lower on big revenue misses in coming years, which I don’t expect. When I first bought Google the day it came public it was at $90 a share. Google’s now got $120 per share net cash. That cushion isn’t as big for the Google after this huge move we’ve ridden to the upside. Just pointing it out.
Powerful Tech: New Innovations to Fight Rape, Murder, and Atrocities – From the article: “Can technology single-handedly prevent atrocities? That may be far fetched.” No, I don’t think it’s far-fetched at all and indeed, technology is the ONLY way to stop atrocities. The printing press helped stop atrocities for one. I wrote a detailed article for the Financial Times a few years ago about how technology will and does indeed stop atrocities. Besides, you don’t know which atrocities it has stopped because by definition, the atrocity didn’t happen since technology stopped it. You don’t think there’d be more wars amongst the developed countries of the world without the ability for newspapers, TV, books, letters, telephones, smartphones, Twitter, Facebook and so on shining a light on some potential atrocity when it first starts?
Governments, Led by U.S., Seek More Data About Twitter Users – You know tyrants and despots around the world crack down on social networking and Twitter specifically and how we in the US used to be proud about our freedoms? What a long, shameful way we’ve come.
Strategic Stock Trades: Live Positions – I got an email from a Marketwatch reader asking me who the hottest hand in the market I know of right now. My old mentor, Richard Gobel, is on fire. Some good trading ideas both long and short on this list which is updated daily for those so inclined to mimic a hot hand.
Fabrice Tourre Will Never Sell Synthetic CDOs In This Town Again – From the article: “Basically the list of nine-figure settlements for securities misrepresentations is endless, and the list of individuals sued for actually making those misrepresentations is Fab. Five years after the financial crisis the SEC has discovered that it can convince a jury to hold individuals responsible for those misrepresentations. Well, an individual. Just the one. Poor Fab.” Well-phrased satire and truth.
What’s a Wall Street Billionaire Facing Indictment To Do? Party On, Of Course! and Swaps Probe Finds Banks Rigged Rate at Expense of Retirees – The outrage that the general public feels about Wall Streeters getting away with anything and everything they do is growing. From the article, “You would rest comfortably knowing that your entire racket, the financial services industry, has been blissfully committing fraud, doing insider trading, engaging in price-fixing, and myriad other schemes to suck money out of the pockets of hard-working people in the real economy for the better part of three decades, and all you need to do is buy off the politicians and the media and you’re safe to keep the game going. Heck, you’re making plenty of them rich, too!”
Larry Summers and Financial Crises: Is He Being Graded on Attendance? vs Summers After Government Saw Wealth Surge to $17 Million – Gross revolving door and failing upward. Someone asked me on Twitter who I’d put up for Fed Head. I would eliminate the Fed and allow for privatized competing currencies and just use the US Dollar as the currency for paying taxes or receiving benefits from the US govt. I wouldn’t pick anyone. I would not compromise on stopping the stealth fleecing of the US citizen via fiat currency and everything else the Fed does and is designed to do.
COMEX Registered Gold inventory Continues To Decline – A Litany in Time of Frauds and New Month, New Highs – Last year, I was boldly on record calling for a top in gold and silver and even getting short silver back at the top. And I’m even more boldly on record right now on calling for a huge run up in both metals over the next few years and over the course of my lifetime (see my latest book, Everything You Need to Know About Investing in Gold and Silver). The charts in this article are shocking and are part of why I am sounding the alarms on the metals right now.