Lună: Februarie 2016

Lord Mervyn King: ‘Forgive them their debts’ is not the answer

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.

Market turmoil: Wall Street falls; negative rates not off the table says Yellen – live | Business | The Guardian

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

That was fast: Apple passes Alphabet again

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

 

Apple Inc, going for free within 8 years

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