Posts Tagged ‘Apple’

Notes From Underground: Buy Apple, TWEET, TWEET (Or So a Little Birdie Told Me)

August 15, 2013

(Or, SO GOLD IS A VERY RATIONAL INVESTMENT)

The tweet heard ’round the world makes those who claim GOLD┬áis an irrational investment appear to be the true FOOLS. In 140 characters, one man’s opinion added $40 BILLION to the equity value of a corporation. This is insanity and makes the idea of a rational capital market structure very suspect. The number of outstanding shares of Apple Inc. is 908 MILLION, thus a rally of $45 puts on more than $40 billion dollars of equity. This makes the recent rally in GOLD a very rational rebuttal. One man did the work of what thousands of sell side analysts failed to do. (And they wonder why the retail investors have been sidelined). The HFTs are pissed because they didn’t get the news two seconds early. The efficient market hypothesis may be correct during a certain amount of time, but in today’s algo-driven market and tweetable investments it is difficult to refer to any market as rational in the traditional sense. Warren B., you got a lot of explaining to do. But until then, don’t denounce GOLD as a haven in the times of monetary insanity. Oh well, back to the tapering!

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Notes From Underground: Getting To The Core Issue In Apple’s Dividend

March 19, 2012

Today, in an interview with Betty Liu on Bloomberg TV, I was asked about the “news” of the day, of course that being the APPLE decision to pay a dividend and buy back stock. Long-time readers of NOTES are aware that I am a believer in stock dividends as a way to return capital to the genuine owners of a corporation: THE SHAREHOLDERS. Ms. LIU wanted to know if the APPLE news was bullish for the EQUITY markets as the share price of the technological behemoth would drive all indices higher. As a GLOBAL MACRO analyst/trader/investor, I said that it was more bullish for capitalism in America.

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