Posts Tagged ‘Twitter’

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: The revolution will not be televised*

February 14, 2011

As I was inundated with the news out of the Middle East it was simple to recall the song by Gil Scott-Heron. The talking heads were mesmerized by their apparent influence in helping to spark the “PLAZA FIRE.” This is a nice kumbaya moment to believe that the Twitter generation can overcome autocratic rulers by messaging. However, I think it creates a great deal of danger for those with their bodies in the squares. I am a believer in the need to remove the sclerotic autocrats from power but Egypt was not one of those moments. The military that has run the political machinery in Egypt is still intact and pulling all the strings. It is certainly a feel-good moment for those involved but until real change occurs it is nothing more than rearranging the chairs.

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