Category: Entrepreneurs


Ever wonder how Venezuela became … Venezuela?

Almost DailyBrett at one time expected that Amazon would announce Austin, Texas as the recipient of HQ2 with its estimated $50 billion total investment and upwards to 50,000 technology positions with full benefits.

As a major technology hub, Austin offers a well-trained workforce, the capital of a right-to-work state, no state income taxes, and politicians’ favorably predisposed to corporate capitalism. In addition, Amazon bought Whole Foods in 2017 for $13.7 billion, which is based in … Austin.

Instead, Amazon selected Northern Virginia with it well-educated workforce and proximity to the infinite wisdom emanating within the Beltway. The other choice, which raised more than a few eyebrows, was heavily unionized and über-taxed Long Island.

The original thinking was Amazon would be welcomed with the prospect of providing 40,000 real positions with annual salaries averaging $150,000 and full benefits – not strip mall jobs – and $27.5 billion in new tax revenues during the course of 10 years. Yes, there were $3 billion in tax incentives from the State of New and New York City and these are always controversial.

Let’s see $3 billion in exchange for $27.5 billion in new revenues and 40,000 direct high-paying positions, not counting all the indirect economic activity supporting Amazon HQ2 in terms of suppliers, vendors and utilities.

Buy Low, Sell High?

Alas the United States is a divided nation, not just Democrats vs Republicans … but more to the point: Socialism vs. Capitalism.

Some wish to punish Amazon and its wealthiest dude on the planet boss, Jeff Bezos, for pioneering digital retail, employing 613,300, generating $232 billion in annual revenues, and stimulating $798 billion in investor market capitalization.

Amazon was greeted to Gotham by a buzz-saw of those who disdain capitalism in favor of command-and-control socialism.

As a former gubernatorial press secretary, the author of Almost DailyBrett imagined what it would be like to be relaying really bad news to the boss – New York Governor Andrew Cuomo – and answering the flood of media calls.

The alternative of a root canal is looking real attractive right now.

Ever hear the one about banging your head against the wall?

It only feels good, when you … stop.

Is Amazon Serious?

Is Amazon just firing a shot across the bow?

“It (loss of Amazon investment) would certainly undermine confidence in governance. You can’t empower anti-capitalist ideologues and expect the capitalists to embrace them. I still think they will work this out, because the embarrassment would be severe.” – Joel Kotkin, Chapman University professor of Urban Studies

“You have to be tough to make it in New York City. We gave Amazon the opportunity to be a good neighbor and do business in the greatest city in the world. Instead of working with the community, Amazon threw away that opportunity.” – New York Mayor Bill de Blasio

“Threw away” constitutes fighting words.

These provocative words make it more difficult for the City of New York and Amazon to “work this out.” Why did da Mayor challenge Bezos’ manhood (we know it exists) in the first sentence of his prepared statement, and then charge the company with throwing away an opportunity in the concluding sentence.

Hey Mr. Mayor ever heard of the words … “disappointed”? … “concerned? … “let’s talk”?

If New York bids adieu to 25,000-to-40,000 Amazon positions and $27.5 billion in tax revenues in Alexandria Ocasio-Cortez’ congressional district, will those who are cheering today be demanding social justice from New York state and city tomorrow?

Even China with its brand of authoritarian capitalism figured out that buying low and selling high is the best way to provide prosperity for its people.

New York had the prospect of becoming a lucrative technology hub … but it “threw away” that opportunity.

https://www.nytimes.com/2019/02/14/nyregion/amazon-hq2-queens.html

https://www.forbes.com/sites/alyyale/2019/02/13/leaving-long-island-city-what-losing-amazon-hq2-would-mean-for-nycs-future/#18d48f01127c

https://nypost.com/2019/02/14/de-blasio-amazon-threw-away-great-opportunity-in-nyc/

 

 

“Ask not what your country can do for you – ask what you can do for your country.” – President John F. Kennedy, Inaugural Address, 1961

“Economic security for all who are unable or unwilling to work.” – FAQ for the “Green New Deal,” 2019

“Lately it occurs to me what a long, strange trip it’s been.” – Grateful Dead, Truckin,’ 1970

Almost DailyBrett remembers those who said same-sex marriage would never happen.

There were those who said that recreational marijuana would never be legal, let alone pot shops on virtually every street corner.

And that states (i.e., Virginia, New York, Vermont) would never adopt up-to-the-nanosecond-of-birth (and beyond), abortion.

They are all now reality.

Will the next breakthrough come in the form of Universal Basic Income (UBI), or income redistribution from those who achieve to those … who voluntarily do … nothing?

Call it the ultimate in cradle-to-grave dependency: The government taxes entrepreneurs/job creators up the wazoo to pay living-breathing recipients for the privilege to sleep-in-to-noon, play video games, binge watch, smoke dope, drink beer and repeat the cycle the following day.

Seems a long way from the days of JFK, once a Democratic senator from Massachusetts, calling for nationwide patriotism to Ed Markey, a present-day Democratic senator from … you guessed it … Massachusetts, advocating taxpayer payments to those “unwilling” to work.

To be fair, Rep. Alexandria Ocasio-Cortez, Markey and other Green New Dealers, claimed it was a “mistake” for the plan’s FAQ to be distributed to the media … who in turn reported the details of the proposed give-away to those who just don’t want to work.

How did the word “unwilling” end up on a draft FAQ, if Universal Basic Income isn’t a part of the thinking of the Green New Dealers?

Talk about a public relations disaster.

Announced Democratic presidential aspirant and entrepreneur Andrew Yang, has actually dug into his own pocket to pay one family in New Hampshire and another in Iowa $1,000 per month to demonstrate the benefits of UBI.

The vast majority will rightfully ask ‘Andrew Who?’ but give him credit for having the courage to introduce Universal Basic Income into the Democratic presidential primary season social justice debate.

Will UBI be part of the party platform at the 2020 Democratic National Convention. Your author will take the “under” … for now.

If there are millions of people voluntarily not working (e.g., approximately 32 percent of working age males, source American Enterprise Institute), maybe the government can give them a hand as the face the repetitive boredom associated with doing and accomplishing … nothing.

Paying People To Do Nothing?

Almost DailyBrett never thought he would be compelled to ask: Is it moral for the government to take money from hard-working taxpayers to give it to those … who decide on their own to do nothing, achieve nada, and give zero back to society?

The debate about whether or not to establish a “safety net” for those adversely impacted by deep economic cycle downswings has long been decided. The questions remain about the extent, costs and durations of these assistance programs.

UBI is the ultimate public assistance cocaine dressed up as a basic right. The recipients are forever hooked to the green drug. The government is now obligated to forever keep providing this largesse to those who unwilling to work.

The pressure will always be present to increase UBI payments to keep pace or even exceed inflation, regardless of the consequences to the annual deficit or the rapidly accumulating national debt. The insatiable demand for more redistribution tax dollars for the do-nothings will accelerate.

Any efforts to curtail or reduce Universal Basic Income will trigger a cold-turkey effect (see “Yellow Vests” or gilets jaunes on the streets of Paris). The “program,” once launched will be eternal and unreformable.

Eventually, who is going to say “no” to free money from the government? Isn’t it in the recipients’ “best interest” to stay on the government gravy train? Don’t they as Americans have a right to not work … and get paid for it too?

Despite the obvious moral questions, the public policy fight over Universal Basic Income is closer to the beginning rather than the end. Those who worry out loud about the impact of Artificial Intelligence (AI) – a good example is Elon Musk – have already pointed UBI as another tool in the safety net.

Universal Basic Income is not a safety net, but that doesn’t mean it won’t.

UBI is a shameful governmental give-away pure and simple.

Strong Almost DailyBrett opinion to follow.

https://www.cnbc.com/2019/02/07/ocasio-cortezs-green-new-deal-offers-economic-security-for-those-unwilling-to-work.html

https://www.businessinsider.com/right-wing-media-attacking-alexandria-ocasio-cortezs-green-new-deal-2019-2

https://www.nationalreview.com/corner/the-green-new-deal-and-a-universal-basic-income/

https://www.cnbc.com/2018/09/10/andrew-yang-universal-basic-income-to-protect-jobs-from-automation.html

https://almostdailybrett.wordpress.com/2016/07/06/universal-right-to-a-paycheck/

https://almostdailybrett.wordpress.com/2018/04/15/deadbeat-boyfriends/

 

 

 

“I can understand wanting to have millions of dollars, there’s a certain freedom, meaningful freedom that comes with that. But once you get much beyond that, I have to tell you, it’s the same hamburger.” – Bill Gates speaking to university students

There are 25.7 million Google results of an image of a middle-aged dude standing all alone with his hands in his pockets.

He is patiently waiting in line for his cheeseburger, fries and a coke.

The maroon pullover guy is patronizing the original Dick’s (1954), which unofficially serves as a gateway to the upper class Wallingford neighborhood in Seattle.

Is the pale dude (gasp) … privileged?

What gave him the right to buy a “Deluxe,” fries and a coke in Wallingford?

Did his parents dote on him? Where did he go to school? Where did he go to college?

Did he ever invent anything of value to society? Did ever provide a living to people?

Did he ever give back to make our world a better place?

And if the answers to these questions do not meet communal approval – Privilege? Family? College? Inventions? Philanthropy? – should we as a collective society even the score in the name of social justice?

It may seem silly to some to have this public good discussion, and yet 25.7 million Google results are triggered in 0.28 of one second, when one inquires about the guy in the sweater standing all alone in line at Dick’s.

Our Obsession With Wealth?

How many billionaires — members of the three comma club — would stand-in line all alone for a burger and fries?

And yet there was Microsoft founder Bill Gates, 63, waiting in line at Dick’s on Sunday evening, January 13.

In our always-on digital imaging world, it did not take long for the celebrity dude doing normal things to go viral, generating stories and impressions about Gates and his love of hamburgers.

The latest estimates place his net worth at $96.5 billion. Couldn’t Gates simply buy Dick’s as opposed to standing in line for a burger? Where was his entourage? Couldn’t he feed the homeless with Dick’s burgers?

And how did he make that money? Did he take full advantage of his privilege? Did he inherit the money?

As many Almost DailyBrett readers know, Gates and the recently departed Paul Allen founded Microsoft in 1975. Their entrepreneurial spirit and those that followed (i.e., Steve Ballmer and Satya Nadella)  resulted in the ubiquitous Windows operating system, X-Box gaming console, Microsoft Surface PC, Microsoft Cloud and so much more.

Microsoft is one of the three largest competing companies in market capitalization (share price x number of shares) at $814.5 billion, generating $96.5 billion in total revenues and employing 134,944 around the world.

After departing the daily operations of Microsoft, the guy in the maroon sweater with his spouse established The Bill and Melinda Gates Foundation. The charitable organization bearing their names has given a reported $36 billion to date to alleviate third world poverty and suffering. They are without any doubt the most generous philanthropists in America.

And yet …

No Good Deed Goes Unpunished

“The problem with socialism is that you eventually run out of other people’s money.” – Former UK Prime Minister Margaret Thatcher

In her quest to become the 46th President of the United States, Massachusetts Senator Elizabeth Warren has proposed a 2 percent surcharge on net assets – not annual income – exceeding $50 million, and another 1 percent on billionaires.  Is Warren’s  “wealth tax” really confiscation in disguise?

There are questions about whether a confiscatory surcharge of assets – not an income tax – is permissible under the U.S. Constitution. This legal question is above the pay grade of Almost DailyBrett.

Having said that, your author must ask: Why do so many Washington elites want to punish achievement, service and philanthropy?

Some rationalize this obsession with wealth as a quest to reach some far-reaching social justice nirvana when the solution is the same-old tired remedy: wealth redistribution targeting those who provide great products, create jobs and give back to the less fortunate.

The answer always comes down to new and more burdensome taxes, but in Senator Warren’s case she calls for outright confiscation of assets. One thing is certain is the redistribution does not stop there. There will also be increases in tax rates, most of all the top rate from 39.6 percent, hiking it to 70 percent, 80 percent, 90 percent or beyond.

Once you have raised taxes and confiscated assets is that the end … or worse … is that just the beginning?

What’s next? Fees on stock and mutual fund transactions? Surcharges on bank accounts? Is the sky the limit?

How about a wealth tax/surcharge on Bill Gates’ hamburger?

https://www.geekwire.com/2019/billions-served-bill-gates-photographed-standing-line-burger-dicks-drive-seattle/

https://www.ddir.com/

https://www.seattlepi.com/seattlenews/article/Billions-served-Bill-Gates-photographed-standing-13539669.php

https://www.washingtonpost.com/outlook/2019/01/24/senator-warrens-plan-tax-ultrawealthy-is-smart-idea-whose-time-has-come/?utm_term=.251e17e49629

https://www.microsoft.com/en-us/Investor/earnings/FY-2018-Q4/press-release-webcast

https://almostdailybrett.wordpress.com/2015/08/23/three-comma-club/

https://almostdailybrett.wordpress.com/2012/09/25/taxing-uncle-phil-to-death/

https://www.businessinsider.com/biggest-projects-of-generous-philanthropists-bill-and-melinda-gates-2018-8

https://www.goodreads.com/quotes/138248-the-problem-with-socialism-is-that-you-eventually-run-out

 

“Did the (Dodge Ram) company really just use Dr. King’s words about the value of service to sell trucks?”New York Times, February 5, 2017

The unfortunate answer was … “Yes.”

Did somebody … anybody … at Chrysler suggest that its Super Bowl LII advertisement shown to 103.4 million viewers (Nielsen Ratings) may not be the best idea? One would hope the executive management at Chrysler is not exclusively composed of yes men and yes women.

If a viewer watching next Sunday’s Super Bowl LIII advertisements takes a sip of tequila every time a cause marketing spot comes across the screen, would that person be smashed by half time?

Based upon last year’s Super Bowl and the trend so far this year, Almost DailyBrett will take the over.

Even weighing Chrysler’s public relations/marketing disaster last February, it seems the trend toward questionable cause-marketing advertising is growing, not subsiding.

Razor Blades and #MeToo?

“Razor blade commercials aren’t supposed to make national headlines, but these aren’t ordinary times. Last week’s Gillette commercial playing on the #MeToo movement became the latest piece of corporate messaging to berate and belittle men.” – Karol Markowicz, New York Post

For Almost DailyBrett, it seems the growing use of cause-marketing advertising with predictable somber music and societal images are mostly lame corporate attempts to attach product brands to a public policy push or cultural icon.

The question remains: Are cause marketing advertising practitioners, who recommend paying $5.1-$5.3 million per 30-second Super Bowl LIII spots to their corporate clients, playing with fire works in the forest with a company’s hard-earned reputation and brand?

Consider Nike’s cause marketing folly of tying its “Swoosh” athletic apparel to Colin Kaepernick, who in many quarters is persona non grata for taking a knee on the flag, the Star Spangled Banner and America.

Is Colin playing in the Super Bowl next week? Will he ever play again? Almost DailyBrett will take the under.

We all know that Chrysler was burned big time for attempting to link the words of the late Dr. Martin Luther King’s sermons to the sale of Dodge Ram trucks.

Who thought this poor taste linkage was a good idea?

Ditto for Gillette tying razor blades to the #MeToo movement or Nike taking a knee on Old Glory.

Almost DailyBrett must ask: Were the ads submitted to focus groups (qualitative research)? What was the input of in-depth interviews from African-American respondents (Dodge), women (Gillette) and veterans and their families (Nike)? Was any random quantitative research conducted to validate or contradict the focus group reactions?

Tying the sale of muscle trucks by a publicly traded company to the words, works and deeds of a renowned assassinated civil rights leader/legend sounds risky at best.

The national response to boorish men continues to this day. Is Gillette taking a stand against the #MeToo movement? Hope not.

Does Nike management have a problem with the Star Spangled Banner?

Infamous Or Notorious Brand?

Defenders of dubious cause marketing ads, which draw justified rebukes, will predictably respond that millions of viewers now identify with the (tarnished) brand/product. They will piously state that nothing is worse than spending $5 million-plus for a 30-second spot and the viewers don’t remember the sponsor of the advertisement. Okay, but …

Your author is not carte blanche taking aim against all cause marketing ads.

For example, Verizon cleverly tied its wireless services to first responders running toward the flood, the fire, the earthquake … ensuring they receive the urgent call for their life-and-depth services.

What are Almost DailyBrett’s rules for cause marketing spots, whether or not they are intended for the Super Bowl of Advertising?

  • Appreciate that tribalism is rampant in America, and the warring camps simply do not care, let alone in many cases tolerate each other. Avoid taking sides (e.g., Nike). The predominant views in your locale (e.g., Beaverton, Oregon) are most likely not a reflection of the country as a whole.
  • Contemplate that movements are based upon redressing grievances. They have leaders. They have organizations. They have a determined cause. Don’t try to hijack a movement to sell your products (e.g., Gillette).
  • Invest in qualitative (i.e., focus groups, in-depth interviews) and random quantitative research (e.g. surveys). Don’t prejudge the results. If the respondents essentially question or even revolt against the proposed ad … don’t argue, don’t rationalize … drop it (e.g., Dodge Ram).
  • Embrace honesty with company management about the possible repercussions in terms of reputation, brand, sales, stock price, market capitalization, P/E ratio.
  • Consider that viewers are smarter than you think. They may not respond kindly to clumsy ads that attempt to sell trucks with the words of a slain civil rights leader. How about using puppies or horses to sell beer (just as long as no animals were injured making the ad)?
  • Know that cause marketing is overdone, and is almost becoming cliché. That statement does not preclude cleverly tying a relevant product (wireless communication) to first-responders (e.g., Verizon).

And most of all, follow the Almost DailyBrett Golden Rule: When in doubt, throw it out.

https://www.boston.com/sports/super-bowl/2019/01/24/super-bowl-ad-prices

https://almostdailybrett.wordpress.com/2018/09/04/nike-takes-a-knee/

.http://superbowl-ads.com/cost-of-super-bowl-advertising-breakdown-by-year/

https://adage.com/article/super-bowl/2019-superbowl-liii-ad-chart/315605/

https://www.nytimes.com/2018/02/05/business/media/mlk-commercial-ram-dodge.html

https://nypost.com/2018/02/04/dodge-ram-under-fire-for-using-mlk-speech-in-super-bowl-ad/

https://www.washingtonpost.com/news/arts-and-entertainment/wp/2018/02/05/its-been-a-tough-year-america-these-7-super-bowl-commercials-tried-to-give-us-hope/?utm_term=.3dc3a75c7cc3

Tired of screaming talking heads?

Are you just done … with polemics?

Want real news that is more than 24-7-365 bashing of Donald Trump?

How about real-time information, which is 100 percent relevant to at least 54 percent of Americans who constitute the nation’s “investor class”?

Digging deeper one finds that 73 percent of those with bachelor’s degrees and above, and 83 percent of master’s degrees and above, own publicly traded company shares or stock-based mutual funds … many in employer 401K plans or IRAs.

Buy Low, Sell High!

With all of these stats in mind, Almost DailyBrett welcomes you to the best network on television: CNBC.

What ever happened to critics who proclaimed that around-the-clock Wall Street market coverage would never work?

They are the same naysayers who proclaimed that 24/7/365 sports wouldn’t fly when ESPN was launched in 1979.

How did either of these forecasts work out?

Just as ESPN’s proven business model fostered a plethora of imitators (i.e., Fox Sports, CBS Sports, NBC Sports Network), the same is true with CNBC, born in 1989.

Two years later, CNBC’s parent acquired Financial New Network. There was obviously moola to be made from those who care about global markets, particularly their NYSE and NASDAQ investments.

Never-shy-about-about-exploiting-an-opportunity, Rupert Murdoch, debuted CNBC’s major competitor Fox Business in 2007, including raiding CNBC for proven on-air talent (i.e., Maria “The Money Honey” Bartiromo, Neil Cavuto, Liz Claman …).

Fox Business now leads in the Nielsen Ratings for cable business networks, just as Fox News is on top for cable news channels.

Almost DailyBrett believes that competition makes everyone better, and contends that CNBC can take full advantage of the opportunity that comes from adversity.

Can’t Quantify PR?

Working for the Semiconductor Industry Association (SIA) in the mid-1990s, your author as director of communications was interviewed each month on the chip industry’s book-to-bill ratio … or what is the relationship between the booked orders and the already billed orders.

One always wanted the former to be higher than the latter.

As a director of Corporate Public Relations for LSI Logic, Almost DailyBrett booked our CEO Wilf Corrigan on CNBC whenever we had good news to report, provided the markets were open and trading.

One particular time our stock was trading at $86 per share when the interview began. Three-or-more minutes later (an eternity on television), LSI Logic shares had jumped to $89 per share or x-millions more in market capitalization (number of shares x stock price)

And who says, you cannot quantify effective public relations?

The direction of a company’s shares can head to the north, but to the south as well, thus resulting in the term for a stock being a volatile, “Dow Joneser.”

Recently saw a sell-side analyst explaining on CNBC why he downgraded Nike from a buy to a hold with a lower sales target … the stock sold off during the interview. That is the awesome power of an analyst being interviewed on a financial news network.

Almost DailyBrett contends from years as a loyal viewer that CNBC covers real news: What’s happening with global markets, consumer spending, newest gadgets and gizmos, trade wars, Brexit, Federal Reserve rate hikes or cuts/quantitative tightening or quantitative easing ….

Is CNBC perfect? Far from it. Yours truly rolls his eyes whenever yet another report focuses on East Coast dino-tech legends General Electric (GE) or Itty Bitty Machines (IBM). The former is Sears in drag, and the latter is just a few steps further back on the same bridge to nowhere.

Having said that, there is a healthy consistency that comes from Bob Pisani from the floor of the NYSE and Bertha Coombs from the NASDAQ.

Who can avoid smiling when Jim Cramer is throwing bulls and bears on “Mad Money?” David Faber (a.k.a. “The Brain) is always solid with his reporting.

Carl Quintanilla, Morgan Brennan and John Fortt are especially credible with the coverage of technology to start the day. Wilfred Frost and Sara Eisen put a capper on the trading day by hosting “Closing Bell” with Michael Santoli providing analysis of the just competed trading day.

If you want wall-to-wall about what is wrong with the relationship between Donald and Nancy, there are networks, which can provide you with all the gory details on a 24/7/365 basis. Go for it.

And if you can’t wait for another update on the no talent Kardashian family, CNBC is not your cup of tea … and never will be. Thank the good Lord.

https://news.gallup.com/poll/211052/stock-ownership-down-among-older-higher-income.aspx

https://www.marketwatch.com/story/the-amount-of-americans-not-saving-for-retirement-is-even-worse-than-you-thought-2017-02-21

https://www.nytimes.com/2018/02/08/business/economy/stocks-economy.html

https://www.cnbc.com/

https://en.wikipedia.org/wiki/CNBC

https://www.forbes.com/sites/markjoyella/2018/10/02/lou-dobbs-maria-bartiromo-lead-fox-business-to-big-ratings-win/#4e449fd924bf

https://almostdailybrett.wordpress.com/2018/12/20/how-fox-news-keeps-on-winning-the-ratings-war/

 

 

 

 

 

 

 

Pass the Maalox!

The Dow lost 651 points on Xmas Eve.

The Dow gained a record 1,066 points the day after Christmas.

The Dow lost 611 points Thursday morning only to finish up 260 points in the very same afternoon.

What’s the lesson for retail investors competing in an unfair market?

Don’t go all wobbly over the Dow Jones.

More to the point: Never panic.

And let’s not forget: Don’t morph into Gloomy Gus or Negative Nancy when the market gyrates downward.

Just as important, never become a Pollyanna when the markets surge. Stay grounded.

Since October 3, the ever-downward market psychology has resulted in traders selling the rallies as opposed to buying the dips.

Buy Low, Sell High has been redefined … at least for now.

Algos Giveth; Algos Taketh Away

Almost DailyBrett clearly recognizes the Wall Street playing field is not level; it tilts downward to the “institutions,” the Buy-Side and the Sell-Side traders.

Similar to Oakland Athletics general manager Billy Beane (played by Brad Pitt) in “Money Ball,” the Charles Schwab retail investor (e.g., me) is competing in an unfair game.

Isn’t the easy solution to simple not invest in Wall Street, stick your money in a bank with pathetic interest rates or maybe even under the mattress?

Having said all of the above, the markets remain the choice investment vehicle for the 54 percent of Americans who constitute the Investor Class. These optimists about America’s future devote discretionary revenues in stocks and stock based mutual funds to pay for retirement, health care, children’s education or that dream vacation.

There is a ton of advice out there about taming the markets – some counsel is sound, other “advice” is dubious.

What is the humble advice from Almost DailyBrett, who has invested in markets for 25 years and who taught Corporate Communications and Investor Relations at two major universities?

There are Bulls. There are Bears. And Pigs Get Slaughtered

 “Know what you own, and know why you own it.” – Investor Peter Lynch

  • Your author believes in building your own mutual fund, instead of always paying a fee for someone else (e.g., Fidelity) to manage your money. And when you do structure your very own mutual fund make sure you know why you own each stock (thank you Peter), and make sure you diversify these holdings (everything can’t be tech).

For example, Almost DailyBrett presently owns Apple, McDonald’s, Nike and Salesforce; just sold Boeing. Two are differing tech stocks, one feeds 1 percent of the world each day, and the swoosh just does it as the leader in athletic apparel.

  • Passive investing is a loser. Building wealth is work. Far too many just purchase mutual funds at work through pensions and 401Ks or IRAs at home and literally forget about them. Really? This is your money. What is being done with your money? What are your returns? Forget passive. Be active.
  • Use or consume the product/service of the companies you own (i.e., Apple iPhones, McDonald’s Big Macs, Nike running shoes …). Understand very clearly how a company makes money. If you can’t comprehend why shares are increasing (e.g., Bitcoin), don’t invest. There is a world of difference between investing and gambling.
  • The harder mental gymnastics is not when to buy, but when to sell. Think of it this way: On Wall Street, there are bulls, there are bears … and pigs get slaughtered. Set upside-and-downside sell targets for your stocks. When they reach these points, ring the register. Sure wish your author always followed his own advice.
  • Accept the algorithms. The big institutions (not you) have pre-programmed servers with instruction algorithms that automatically to the nanosecond buy or sell large blocks of stocks whenever certain market price points are triggered. The game is not fair. Accept it.
  • For the longest time the bulls have been running (e.g., November 2016 – October 2018), and corresponding market psychology has been optimistic (bad news discounted). Since the start of the bear market on October 3, the psychology has dramatically shifted to the negative (good news is irrelevant). If you invest, you will experience both moods.
  • Most of all: Don’t panic. Stay active. Remain calm. Sometimes strategic retreat is necessary. Sell underperformers and convert to liquid. Cash is always king. There will be a bottom. There will be a day to buy low with the hopes of selling high.
  • Know your level of risk. If you can’t accept gaining $10,000 one day, and giving $9,000 back in the next day (a $1,000 gain for those scoring at home), you shouldn’t be investing in markets. Pathetic bank interest rates or under the mattress is right for you.

Yes there will be a day when it is time to buy the dip, while those who try to sell the rally end up losing their … fill in the blank.

“If the Earth slammed into the Sun (or vice versa), what would the president do?” – CNN correspondent

“Guess, we would all fry and die.” – White House Trade Hawk Peter Navarro

Couldn’t believe that Navarro would answer CNN’s hypothetical question Friday about whether President Trump would impose $200 billion in even more tariffs on China, if the next 90 days of trade negotiations go nowhere.

Instead of bobbing, weaving and ducking the question, Navarro answered in the affirmative.

Why Peter, why?

American markets tanked Friday, led by a 558-point decline on the Dow.

The psychology on Wall Street is so negative right now. Traders are selling the bounces instead of buying on the dips. Forget about Buy Low, Sell High.

Why did the White House Press Office allow Navarro take an interview with CNN? Isn’t “prevention” one of the key components of effective crisis communications?

The liberal network openly despises … being nice here … Navarro’s boss (see Jim Acosta antics), and will not do the administration any favors whatsoever (e.g., benefit of the doubt).

Were you media trained, Peter?

Obviously, not.

Why didn’t you coordinate your talking points with Larry Kudlow?

Instead it was administration bad cop, trade hawk (Navarro) contradicting an administration good cop, trade dove (Kudlow), resulting in the media and markets seizing upon … Navarro’s negative response to a hypothetical question (e.g., more tariffs on China).

Shocking or more of the same from 1600 Pennsylvania Avenue … or both?

It’s now painfully obvious the happy talking points/tweets emerging from last weekend’s G20 Xi-Trump summit over Argentinian steak were over-done … way over-done.

Earth And Sun Collide?

Can’t tell you how many times Almost DailyBrett has been asked hypothetical questions, posed by the media to generate headlines particularly on slow news days.

If asked by a member of the Capitol Press Corps in Sacramento what my boss would do if the earth did indeed slam into the sun, your author would without doubt take the following approach:

“The earth and the sun vary between 91 million and 94 million miles a part each year, and the earth has been around for 4.543 billion years. We are confident this trend, which is our friend, will continue.”

Always remember, conditions can and most likely change between now and later. If that is indeed the case, why answer a hypothetical?

Here’s an even better answer:

“As a policy, we do not answer hypothetical questions. We will say is that we are cautiously optimistic about our trade negotiations with China. We are not going to prejudge this process.”

Boring? Sure. That’s the point.

Do the markets sell off, putting more pressure on the U.S. negotiators? Not likely.

Are the reporters/correspondents disappointed? Oh well …

Should an administration speak in one voice? Always.

Kudlow and Navarro should not be separate spokesmen with conflicting philosophies on the same question. The Alexander Hamilton-Aaron Burr duel would have gone viral in the 21st Century with the NASDAQ dipping into correction territory.

Kudlow mentions the potential of extending the moratorium on tariffs for another 90 days Friday, if the negotiations are making progress … markets go up.

A little later Friday Navarro confirms the possibility of raising $200 billion in additional tariffs, if the negotiations go nowhere … and the markets are pounded.

Who’s on first?

Maybe, Mr. Art of the Deal wants to deliberately send confusing, ambiguous signals to the Chinese to keep them off guard … Good Cop vs. Bad Cop?

Unfortunately, this latest market selloff and the related overly negative market psychology could have been avoided by simply refusing to answer hypothetical questions, and by an administration speaking in one voice.

Is that too much to ask?

http://www.businessdictionary.com/definition/hypothetical-question.html

https://www.cnn.com/2018/12/07/investing/stock-market-today-navarro-kudlow/index.html

https://www.space.com/17081-how-far-is-earth-from-the-sun.html

https://astronomy.stackexchange.com/questions/19833/about-how-many-revolutions-has-the-earth-made-around-the-sun

 

 

 

The national Twitter Bull-in-a-China-shop champion may not be the one you suspect.

Would you allow Elon Musk to baby-sit your retirement nest egg?

REUTERS/Rashid Umar Abbasi

Consider the following:

In the last three months, Tesla common shares (NASDAQ: TSLA) are down $69.59 or 19.74 percent.

Tesla confirmed today the Department of Justice (DOJ) is launching a criminal probe into les affaires at Tesla.

Earlier, the Securities Exchange Commission (SEC) announced its own civil investigation following Tesla founder Elon Musk’s August 7 tweet, proclaiming “funding secured” for taking Tesla private. Is Musk guilty of selective disclosure of material information (e.g., “Funding secured) in violation of SEC Reg FD (Fair Disclosure)?

There was also the inexplicable video of Musk smoking dope on television.

Why Elon, why?

Musk charged not once but twice that one of the heroes, saving the Thailand boys’ soccer team from a flooded cave, is a “Pedo guy.”

Nomura Securities downgraded TSLA from “buy” to “neutral,” reducing the company’s price target from $400 to $300, concluding that Tesla shares are “no longer investable.”

“Notwithstanding improving fundamentals, we believe that Tesla is in need of better leadership, an about face, and are moving to the sidelines until we see what happens with management. “ – Nomura Securities analyst Romit Shah

Does Elon Need His Own Mad Dog Mattis?

The best-and-brightest public relations counselors in the world can do absolutely nothing with Elon, if and until he is willing to ponder sage advice for even a nanosecond.

Tesla co-founder and CEO Elon Musk takes a drag from a cigarette laced with
marijuana in this screenshot from the Joe Rogan Experience podcast on
Thursday, Sept. 6, 2018.

Some have suggested shaking up the Tesla Board of Directors to include strong-willed  independent hombres and mujeres willing to practice tough love with Elon (e.g., no public smoking marijuana for whatever reason).

Elon ‘Musk’s brother and board member, Kimbal, is not a candidate for his job. Did you see his CNBC interview this week from the floor of the venerable NYSE wearing a cowboy hat?

Why Kimbal, why?

Besides trying to run both publicly traded Tesla (EVs/solar) and privately held SpaceX (rockets) at the same time and thus needing more sleep, maybe the biggest issue is way too many sycophants kissing Elon’s derriere for way too long.

Remember the gushing CBS 60 Minutes Scott Pelley interview of Elon back in 2014? Musk was hailed at the time as the second coming of … Steve Jobs including  Almost DailyBrett. Your author repeatedly bought and sold Tesla shares for a nice profit, except the last time, selling for a modest loss.

The CNBC pundits were asking out loud circa 2014 whether Tesla was 1.) An electric vehicle company, 2.) an energy company or 3.) Elon Musk’s company?

The issue now is what would happen if a stronger, independent Board of Directors took the helm at Tesla? Would they have the cojones to fire Elon Musk? Would that stunning action be the 21st Century equivalent of John Sculley firing Steve Jobs at Apple? How did that move play out?

Most of all, what would happen to Tesla’s stock? The shorts have already gone crazy; they presumably would have a field day.

Maybe what Elon needs is his own version of a chief operating officer Mad Dog Mattis or some other chain-of-command George S. Patton type to knock off the nonsense?

Until there is some sense of consistent operating discipline (see Tim Cook’s management of Apple following the 2011 passing of Steve Jobs), the shorts will continue to bet against Tesla and its common shares.

Anybody want to “short” Apple? Didn’t think so.

Most of all, Elon Musk should be precluded from even going near Twitter. These 280 characters can lead to a heap of trouble, including twin probes by the DOJ and the SEC.

Audi today unveiled its $75,000 luxury EV SUV. There is considerable competition because electric cars are not going away.

Static photo,
Colour: electric green

Tesla still maintains considerable advantages: Market leadership, pure-play, first mover, visionary company.

Even with its present cash burn and convertible notes coming due next March, Tesla can more than survive and continue to drive technology leadership.

All Tesla needs is for a Mad Dog to put a discipline leash on one, Elon Musk.

https://www.forbes.com/sites/jimcollins/2018/09/05/elon-musks-increasingly-erratic-behavior-comes-at-a-price-for-tesla-shareholders/#1058c7323944

https://www.mercurynews.com/2018/09/11/elon-musks-erratic-behavior-continues-to-rattle-wall-street/

https://www.cnbc.com/2018/09/18/tesla-stock-drops-after-company-reportedly-to-face-us-criminal-probe-over-musk-statements.html

https://www.nytimes.com/2018/08/13/business/dealbook/tesla-elon-musk-saudi-arabia.html

https://almostdailybrett.wordpress.com/2014/04/02/only-in-america/

https://almostdailybrett.wordpress.com/2014/07/18/donate-to-united-way-or-invest-in-tesla/

https://www.cnbc.com/video/2018/09/17/kimbal-musk-says-his-brother-elon-is-doing-great.html

 

 “San Francisco has many charms, but it is not particularly salubrious. People regularly encountering used drug needles, human excrement and sidewalks full of homeless people when they arrive home late at night at their $4,000-a-month one-bedroom flat in San Francisco sometimes think they might just prefer it elsewhere.” The Economist cover story, “Peak Valley, Why startups are going elsewhere.”  

A median-priced home in the SF Bay Area, including the Silicon Valley, costs $940,000. Where can one find this mid-range beauty?

Scenic Milpitas? Bucolic Sunnyvale? Hip Hayward? Utopia in Union City?

HUD considers a family income of $120,000 in San Francisco to be “low income.” Six figures is “low income”?

The traffic in the Bay Area, let alone Los Angeles, is beyond mind-numbing.

If you like taxes, California is your redistribution nirvana: Income, sales, corporate, property, gas, tobacco, liquor, special assessments, fees, surtaxes, bridge tolls … If it tastes good, it’s taxed.

The Bay Area Council quantitatively revealed that 46 percent of regional respondents want to move elsewhere compared to one-in-three just two years ago.

And where do many consider moving? Portland, Eugene, Bend, Lake Oswego, Ashland … all in Oregon.

The desire of Californians to adopt and embrace Oregon’s superior quality of life at saner prices (e.g., zero sales tax) is not new. What is notable is the disappearance of the term, “Californicators” from the vocabulary of Oregonians.

Are Californicators going extinct?

What happened to this threatened species, which at one time was feared and loathed by Oregonians?

Driving Housing Prices; Compounding Traffic; Polluting Campgrounds

“I urge them to come and come many, many times to enjoy the beauty of Oregon. But I also ask them, for heaven’s sake, don’t move here to live.” – Former Oregon Governor Tom McCall

When the author of Almost DailyBrett first moved to Portland, Oregon in 1990, it was a good idea to remove the California plates from a vehicle as quickly (e.g., two nanoseconds) as possible.

As a former “Californicator,” your author was immediately responsible for all the sins that ailed Oregon. The state’s timber industry was heading in the wrong direction and the national recession hit Oregon hard.

Let’s face it, Oregonians exhibited a pronounced inferiority complex vis-à-vis California with its glorious weather, Silicon Valley entrepreneurs, Hollywood entertainers and yummy wineries in Napa and Sonoma Counties.

What Oregonians didn’t seem to appreciate was that times were-a-changing. California was becoming more image than reality. The estimated 9 million more souls (about the size of Michigan), who were projected to move to the Golden State by 2010, actually established residence … and then some.

Californians started commuting longer distances as traffic intensified and as taxes and tempers rose. California is more than Los Gatos, Los Altos, San Francisco, Tiburon, Malibu and La Jolla. The state is also home to hopelessness in Central Valley foreclosure communities including Stockton, Modesto, Fresno, and Bakersfield.

California used to be divided by north (e.g., San Francisco) vs. south (LaLaLand). Today, it is west (e.g., Palo Alto) vs. east (e.g., Visalia).

Doesn’t It Rain in Oregon?

Sure does and Oregonian loved exploiting the rain, dampness and gloom for their own purposes.

And then all the inferiority stopped cold, replaced by a smugness, even a sense that Oregon is superior to California.

Portland as evidenced by Portlandia became the place in which the Dream of the 90s survived.

JASON: “Remember when people were content to be unambitious? Sleep to eleven? Just hangout with their friends? You’d have no occupations whatsoever. Maybe you work a couple of hours a week at a coffee shop?”

MELANIE: “Right. I thought that died out a long time ago.”

JASON: “Not in Portland. Portland is a city where young people go to retire.”

Oregon became synonymous with the Nike Swoosh. The Ducks played twice for the national title, and won their last two Rose Bowls with Marcus Mariota accepting the Heisman Trophy.

Oregon’s Willamette Valley quickly became recognized as the home of some of the best Pinot Gris’ and Pinot Noirs in the world.

The state’s microbrews are literally second to none including: Widmer Hefeweizen (Portland), Deschutes Mirror Bond Pale Ale (Bend), Ninkasi Total Domination IPA (Eugene), Full Sail Amber Ale (Hood River).

The state diversified away from timber to become a leader in high technology, cancer research, and a whole host of service oriented businesses.

The departure of the figurative Californicators from the local nomenclature is both a reflection of the decline of California, but more importantly the growing coolness of Oregon.

https://www.opb.org/artsandlife/article/former-governor-tom-mccall-message-visitors/

https://www.economist.com/briefing/2018/09/01/silicon-valley-is-changing-and-its-lead-over-other-tech-hubs-narrowing

https://almostdailybrett.wordpress.com/2014/07/29/the-death-of-californication/

https://genius.com/Carrie-brownstein-and-fred-armisen-dream-of-the-90s-lyrics

https://simple.wikipedia.org/wiki/List_of_U.S._states_by_population

 

 

 

 

“Believe in something. Even if it means sacrificing everything.” – Nike multi-million dollar NFL marketing campaign starring Colin Kaepernick.

Wonder if Nike marketers ever pondered those who literally sacrificed everything for the red, white and blue?

They made the ultimate sacrifice.

Where is their multi-million-dollar marketing campaign?

Guess they are not cool.

Nike knew it was going to stir the pot (not cannabis). Guess all publicity is good publicity, even coverage that brings into question the quaint notion of proudly standing for the national anthem and saluting Old Glory.

Seems Nike investors are making a stand this morning driving shares down 3 percent or $3.75 billion in lost market capitalization, while the company is taking a knee on America.

Based upon the early returns with shareholders of NYSE: NKE, there is no doubt the stock is under pressure.

The reason is Nike’s decision to base its NFL marketing campaign, its reputation, and its brand on a guy who disrespected the Star Spangled Banner and Old Glory.

By pouring millions into NFL non-player Colin Kaepernick, who by the way is suing the league for collusion, Nike is taking sides.

Nike claims it stands with the athlete, except Kaepernick is not a player. He’s a litigant.

Almost DailyBrett upon hearing the news of Nike’s controversial marketing campaign seriously considered selling all 451 shares of Nike stock

Investment discipline dictates that one does not sell dividend-paying shares producing a 77 percent gain in a down market. Remember: Buy Low, Sell High.

My hope is that Nike does not use my investor dollars to bestow millions upon a man, who defied our country, our national anthem and our flag.

Can Almost DailyBrett make this humble request to Just Do It management? Please.

Boston Massacre

Keep in mind, the Colin Kaepernick campaign is not the first time that Nike screwed up.

Remember the company’s “Boston Massacre” campaign?

Nike hopes you forgot the misguided Yankee colored t-shirts with bullet holes and blood.

The t-shirts were unveiled on 2013 Patriots Day … yep the same day as the Boston Marathon terrorist bombing.

Back to the point, who thought that a t-shirt with bullet holes, blood and the Nike Swoosh was a good idea? The answer is the same marketing department that is giving us the middle-finger Colin Kaepernick campaign.

There are some besides POTUS, who disagree with Kaepernick and his imitators taking a knee during the playing of Francis Scott Key’s poem, America’s national anthem.

How about campaign featuring NFL Hall of Famer and Civil Rights Champion, Jim Brown? He dares disagree with taking a knee before the red, white and blue.

Kaepernick is claiming the collusion against the NFL, Nike’s marketing partner. The only problem is another NFL Hall of Famer and Nike model, John Elway, stated ex-cathedra the Denver Broncos offered a contract to Kaepernick.

Details, details sometimes interrupt a pre-determined narrative. Right CNN?

Championing The Athlete, Not The Flag

As long as Nike is condoning the behavior of Kaepernick, maybe the company may want to add its iconic swoosh to the statue of black gloved John Carlos and Tommie Smith, displaying their defiance during the playing of the Star-Spangled banner during the 1968 Olympics.

What’s the difference tween Kaepernick and Messrs. Carlos and Smith?

Almost DailyBrett writes this blog post with a high degree of sadness.

Your author champions Uncle Phil Knight, his entrepreneurship (read his best-selling “Shoe Dog”) and his philanthropy. He deserves every dollar of his estimated $35.4 billion net worth.

He is happily retired. Too bad, he is not on the scene today on behalf of the millions of silent Americans, including thousands of military families, who don’t think Colin Kaepernick is cool.

And never will.

https://www.washingtonpost.com/news/early-lead/wp/2018/09/04/serena-williams-lebron-james-back-nikes-just-do-it-campaign-with-colin-kaepernick/?noredirect=on

https://almostdailybrett.wordpress.com/2012/09/25/taxing-uncle-phil-to-death/

 

 

 

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