Lord Mervyn King: ‘Forgive them their debts’ is not the answer
Excellent analysis from the most revered central banker in the UK, arguing that eurozone is about to break up because of the conflict between democracy at the national level and the central elite that proves incapable to steer the union towards sustainable economics.
My bet is still against the Euro.
Autonomous cars are pretty much transportation robots as it is. If Apple is serious about building cars, they should look past the traditional use and find the essence of what makes an autonomous car really great: you don’t need to be in it.
Source: I Have A Radical But Possible Idea What The Apple Car Will Be
Kit Juckes, top currency strategist at Societe Generale, reckons that the market turmoil has been sparked by a loss of faith in central bankers.
In a new note to clients, he writes:
We’ve relied on central bankers to fix all the world’s woes, when all they could really do was to get the global financial system back on an even keel. Keeping policy too easy for too long and boosting asset markets in the vain hope that this would deliver a sustainable demand pick-up has meant that even a timid attempt at normalising Fed policy has caused two months of mayhem. Now, a growing realisation that central banks’ powers are waning has prompted a rush into safe havens.
And, of course, years of ultra-loose monetary policy have also led us to this point:
We’re just getting the stickers saying ‘Easy Money may cause harmful side-effects if consumed persistently for long periods’ printed….
Source: Market turmoil: Wall Street falls; negative rates not off the table says Yellen – live | Business | The Guardian
Last time I checked, MSFT had double digit decrease in revenues and profits. Why is Mr Market rewarding it with such a high P/E?
I guess a short on MSFT is the perfect complement for a long AAPL.
Source: P/E ratio chart last 12 years AAPL vs GOOGL – Wolfram|Alpha
The big divergences precede Apple’s new product introductions: 2005-2006 before iPhone, 2009 before iPad, 2013-2014 before Watch and Pay.
Now the divergence is the biggest (on the log scale at least). Does this mean that the next product introduction will be the most important yet?
The last time Google was more valuable than Apple was in February 2010, when both companies were worth less than $200 billion. At the time, Apple had yet to release its first iPad, the newest iPhone on the market was the 3GS, and the Mac was the company’s biggest product line, accounting for one-third of revenue. Steve Jobs was still at the helm
Source: That was fast: Apple passes Alphabet again
Approximately halfway through 2023/24 the E[nterprise] V[alue] reaches zero, and the company market cap falls below its net cash figure. Technically at this point anyone wanting to own the entire company would be paying a price equivalent to its net cash balance – essentially getting the company for “free”.
At some point in 2029 Apple Market cap falls to zero, or perhaps $97 – as whoever owns the last share technically takes full control of the company (a company with $230 Billion in net cash!).
The point of this post is not to suggest Apple will in reality reach a zero EV (or less). instead it is to point out that the likelyhood of the Apple share price staying where it is (or dropping), is a very unlikely scenario given the current buyback activity. Sooner or later it is going to have to rise significantly.
Source: Apple Inc, going for free within 8 years | Kirk Burgess