US stock markets get hit today, in part because the Yen is spiking against the dollar while investors in US-based multi-national corporations want a weak dollar.
I could just see the Yen breaking thru to new highs and taking out the resistance levels…and then topping. All that said, I don’t trade currencies. I do own $SNE Sony for the last year or so from the mid teens and plan on owning it for a few more years even tho I know that a strong Yen will hurt its ability to profit from overseas sales.
Here a few more notes for you to start off today:
Here’s a great interview all about #ArtificialIntelligence. Also, I am surprised that $IBM isn’t using their own chips to build the next gen Watson. From $NVDA CEO: “I think Watson is absolutely the right answer. AI, deep learning, cognitive computing. We partner with them—the next generation of Watson will have Nvidia GPUs in it. We’re partnering with them to build supercomputers together.”
Today’s news that the Treasury is nixing the $PFE for $AGN tax inversion merger is exactly I typically sell any position whenever a company I own announces it is being acquired. I don’t do the arbitrage thing and/or hope to hold out for a little bit more.
I’ve been a Tesla bear (but not a short) mostly because I think the company’s reliance on government subisidies for building and selling their product will come back to haunt them. But in the meantime…the $10BB in backlog sales for the $TSLA Model 3 is either the top or its a reason to avoid ever shorting this growth company. I’d rather short a company struggling with demand than one struggling to meet to demand.
Man, $FB‘s beyond critical mass at this point…this kind of market share just continues to feed upon itself in a strong get stronger kind of way. More people spending more time posting and consuming content on Facebook makes more people post and consume content on Facebook, and so on. All that said, it is true that Facebook sometimes feels like it’s your grandma’s social network though, huh?
Q. “Why doesn’t a Microsoft or someone buy Sony?”
A. $MSFT and $AAPL would get anti-trust trouble from trying to buy $SNE. Not to mention culture issues integrating a US-based firm with a Japan-based firm. I don’t think $SNE‘s board or the Japanese government would favor selling the company either.
A. I think I’d prefer to just own a basket of all three stocks you’re asking about —$NVDA $QCOM and $AMBA. They are all chip stocks per se, but each are set up very differently and are in very different places in their current business fundamentals and valuations and so on.
Q. “Do you ever buy weekly options.”
A. I almost always use the standard monthly options unless otherwise specifically stated. Mainly because they have a larger trading base and are a bit more liquid than the weekly options.
An interesting story that’s been making headlines around the world is the leaking of the Panama Papers. Here’s a terrific debate that I had on Scutify yesterday regarding the Panama Papers:
Eleven million documents were leaked from one of the world’s most secretive companies, Panamanian law firm Mossack Fonseca.
They show how Mossack Fonseca has helped clients launder money, dodge sanctions and avoid tax.”
“According to court records, Wintris had heavily invested in three major Icelandic banks which collapsed during the financial crisis.Wintris was listed as a creditor to the banks and therefore could have stood to gain from their collapse. Gunnlaugsson’s opponents allege his reluctance to fully repay the deposits of foreign investors following the bankruptcies amounts to a conflict of interest.
If he had fully repaid, it could have negatively affected both the Icelandic banks and the value of the company’s bonds.”
And I leave with you my Deep Thought of the Day – I want to create investment portfolios like Wintergatan creates music. This is actually a great song created using only one man’s hands, a machine and 200 ball bearings called Marble Machine.