Tag Archive: Wall Street


Which Californian would you rather have running your business: Tim Cook or Gavin Newsom?

Taking into account that Covid-19 indiscriminately hit both Apple and the State of California at the same time in the same place, which entity performed better under nearly identical circumstances?

Under Governor Gavin Newsom’s watch, California with the nation’s highest income taxes (13.3 percent at the apex) and an average sales tax of 8.66 percent recently reported its record $21 billion surplus is now an unprecedented $54.3 billion deficit … that’s a staggering $75.3 billion switch if you are scoring at home. Nonetheless, the state found $75 million in the form of a pander payment to California illegal aliens.

Will they be eligible to vote … some day?

As the chief executive officer of $260 billion Apple with $44 billion in cash reserves, Tim Cook just announced the reopening some of Apple’s national stores this week with many more to follow. The company achieved a 37.8 percent gross margin and 14.3 percent to the bottom line in FY 2019, returning quarterly dividends of $0.82 per share for its shareholders.

As a member of the growing California Diaspora and a best-in-breed investor, who would Almost DailyBrett choose as a responsible fiscal steward?

Hint: Apple shares are up 7.25 percent this year, despite the Corona virus. As CNBC’s Jim Cramer repeatedly has proclaimed, he is only interested in a stock’s future. Share prices are a leading … not trailing … indicator of future performance.

Apple is a leader. California is a laggard.

The same is true with other best-in-breed publicly traded companies including Salesforce.com, Gilead Sciences, Lululemon Athletica, McDonald’s, Microsoft, Nike, NVIDIA and Starbucks. Is the present iteration of California anywhere close to … best in breed?

If California was publicly traded, would a responsible investor select the Golden State or no state income tax Texas and/or Florida?

As the former press secretary for the former Governor of California George Deukmejian (1928-2018), my love for the Golden State is true … your author loathes the present crew in Sacramento. Just ask Tesla boss Elon Musk.

Peddling A False Choice

The bull statue on Wall Street and the True Value hardware store on Main Street are not mutually exclusive.

The countless suggestions of a Berlin Wall type of divide between the two streets is a false choice. Even the stately The Economist fell into this trap.

The reason is simple, millions of investors who live on Main Street, the side streets and the suburbs. Gallup reported that 55 percent of Americans own stocks and/or stock based mutual funds … before Covid 19. America’s Investor Class certainly took a hit with the virus, but there are tangible results indicating without any doubt that investors are coming back, money is coming off the sidelines … heck the NASDAQ is up for the year.

Those who project the end of Capitalism may even be the same to predict the Republicans were the Whigs of the 21st Century, heading for extinction. Whatever happened to these rocket scientists?

Many in America’s investor class are fond of ETFs or Exchange Traded Funds and other versions of mutual funds. Your author is an investor in Fidelity’s Contrafund with $112 billion assets under management (AUM). The fund invests in large caps including Facebook, Amazon, Microsoft, Berkshire Hathaway (think Warren Buffett), Adobe, Google …

Cash needs to be a significant portion of any responsible portfolio, which should include a mutual fund or two.

Almost DailyBrett must pause and ask the investor class (anyone who would care to listen), how about being the manager of your own mutual fund (no fees or commissions)? Why not build a portfolio with your own selection of best-in-breed stocks (e.g., Apple)?

To some, this approach may be too risky. To others, do you really need a paid-by-you investment advisor to tell you that Nike is the number athletic apparel manufacturer in the world? Why not buy the stock when the next inevitable dip comes around?

Buy Low Sell High.

For the most part, America’s Investor Class radiates out from Main Street. To suggest that Wall Street needs to be reined in and economic freedom should be curtailed by those who determine the so-called Public Good is contrary to the best interests of millions investing for retirement, a child’s education, a dream house or a new business.

It takes a free market to raise a child.

Wall Street is Main Street.

P.S. Be careful about investing in The State of California.

https://www.economist.com/leaders/2020/05/07/the-market-v-the-real-economy?

https://www.cnbc.com/2020/05/07/california-faces-a-staggering-54-billion-budget-deficit-due-to-economic-devastation-from-coronavirus.html

https://www.apple.com/newsroom/2019/10/apple-reports-fourth-quarter-results/

State and Local Sales Tax Rates, 2020

https://www.cnbc.com/2020/04/15/california-to-give-cash-payments-to-immigrants-hurt-by-coronavirus.html

https://almostdailybrett.wordpress.com/2019/06/20/californias-growing-diaspora/

What Percent Of Americans Own Stocks?

State Individual Income Tax Rates and Brackets for 2020

“Play the radio, make sure the television — the, excuse me — make sure you have the record player on at night … make sure the kids hear words.” — Former ice President Joe Biden, Democratic Presidential Debate, Sept. 12, 2019

Record player?

Every day Wall Street is assessing, “The Cuomo Effect.”

New York Governor Andrew Cuomo’s daily Covid-19 briefings on the impact of the Corona virus on the most densely populated metropolitan area in the country are moving markets … mostly upwards.

Not only is New York the most impacted state as a result of the spread of the virus, it also serves as the venue for the NYSE and NASDAQ and not-so-coincidentally the major networks.

Almost DailyBrett is still mystified the White House’s Corona Virus task force never adopted the idea of holding its briefings during market hours (e.g., 9:30 am to 4 pm EDT), particularly earlier when remarks from President Trump, Vice President Pence, Drs. Fauci and Birx would have greatest impact.

In turn Governor Cuomo has been Mr. Carpe Diem. Each morning has been his turn to preach the gospel of Covid-19 response. Is there any wonder, where he acquired his oratorical skills? His father, the late Governor Mario Cuomo (1932-2015), electrified the 1984 Democratic Convention with his keynote address.

Your author fondly remembers reading Mario Cuomo’s 1982 diaries about his New York gubernatorial campaign. That was the same year my boss, George Deukmejian (another New York native), ran and won the governorship of California. The Duke also read Mario’s diaries. The same is true for former California governor Jerry Brown.

As a former public relations professor, your author is particularly impressed with Governor Andrew Cuomo’s presence, persona, pacing, command of the language and skillful use of PowerPoint. Almost DailyBrett has been waiting … literally for years … for politicians to skillfully employ PowerPoint, which has long been de rigueur for technology and academic presentations.

“You Know” Four Times In One Sentence?

“Um, you know, there’s a, uh, during World War II, uh, you know, where Roosevelt came up with a thing, uh, that, uh, you know, was totally different than a- than the- it’s called, he called it, the, you know, the World War II, he had the war- the the War Production Board.” — Joe Biden COVID-19 comments Friday, April 17 on CNN

During World War II, President Roosevelt established the War Production Board.

Eleven words. How tough was that?

The hyperventilating “WhatAboutism” crowd is already getting their collective knickers in a twist to identify comparable Bidenesque rhetorical wrestling matches with President Trump. The president is confident when he speaks … maybe too confident … while Biden struggles and struggle and struggles.

Your author would stop a student reaching for his … it was always a male … fourth “you know” crutch word in the same sentence. The Millennial was obviously nervous and maybe a little ashamed in front of fellow students. The job was to slow him down and help him concentrate on delivering a succinct understandable message.

That is the essence of communication.

The real question for today is could Joe Biden serve as Governor of New York, let alone President of the United States, and rally us in days of crisis? Yes Joe is from Del-a-where not New York, but we are putting this obvious point aside for the sake of discussion.

Joe … ‘I knew Mario Cuomo. Mario Cuomo was a friend of mine … and you are no Mario Cuomo’ … make that no Andrew Cuomo as well.

Could Joe Biden present Andrew Cuomo’s corona virus response briefings each day with anything close to the same presence and command? As mentioned Andrew is a skilled orator, but he will not be the Democratic nominee for the presidency.

The answer should be obvious. Joe Biden is not Andrew Cuomo … not even close.

Would the majority of Democrats opt to re-run the presidential primary season, if they could? You bet ya.

Some may point to Joe Biden’s adolescent stuttering. Some may remember Almost DailyBrett’s youthful stammering issue. These problems can be overcome with deliberation, preparation and confidence. The former is running for the presidency. Can he ever inspire or will he always struggle to find the next word.

You know?

https://www.businessinsider.com/joe-biden-record-player-democratic-debate-abc-houston-2019-9

https://almostdailybrett.wordpress.com/2018/05/06/what-about-whataboutism/

New York, N.Y. – The New York Stock Exchange (NYSE) today announced the formation of a sister exchange/wholly owned subsidiary, the Toilet Paper Stock Exchange (TPSE).

The “Tipsie”  began trading today with its first full flush of excitement at 9:30 am (EDT), 6:30 am (PDT).

The commodity units utilized for Tipsie trading are known as Resources Of Limited Life (ROLLS). Digital Trading Platforms (TP) have been established by the TPSE to facilitate the buying and selling of increasingly valuable toilet paper.

“We have never in our lifetimes witnessed the unbelievable demand for the ultimate recession proof product: toilet paper,” said Stacey Cunningham, NYSE Group president. “One way or the other, we all will use this strategic commodity each day, sometimes multiple times a day.

“If we must use ROLLS, and some even resort to evil hoarding of this product (see Costco), why can’t investors trade these ROLLS, employing our TPs under the regulatory oversight of the newly created federal Toilet Paper Exchange Commission or TPEC?”

The “Tipsie” immediately reported brisk initial trading with each ROLL fetching an average price of $69.95, representing a total market capitalization (number of rolls issued x sales price) exceeding $1 trillion.

Only Microsoft ($1.20 trillion) and Apple ($1.11 trillion)at the close of trading on the final day of Q1 2020 rival toilet paper in attainment of 13-digit institutional (i.e., buy and sell side) and retail investor inflows (not to be confused with outflows).

Cunningham cautioned investors to fully expect the trading of ROLLS to remain volatile and fluid for the duration of the Corona Virus (COVID-19) global pandemic. The unprecedented and inexplicable demand of toilet is expected to continue for weeks, if not months.

“Just like any other market — from tulips to Internet start-ups to toilet paper — we must guard against commodification,” said Cunningham. “Most of all we need to cover our … derrieres … if the demand for toilet paper falls and the supply of ROLLS run out. Otherwise, we may feel a little … Tipsie.”

Safe Harbor Cautionary Statement — Institutional and retails investors are summarily cautioned that trading on the increasingly volatile and fluid  TPSE or “Tipsie” requires a certain degree of risk in which the value of ROLLS may actually fluctuate regardless of whether the TPSE or TPs (Trading Platforms) are utliized. The TPSE expressly follows the dictates of the Toilet Paper Exchange Commission (TPEC), the federal Department of Justice, the Federal Trade Commission, the Security Exchange Commission and other regulatory bodies.

About the Toilet Paper Stock Exchange (“Tipsie”)

The Toilet Paper Stock Exchange or “Tipsie” is a sister trading platform to the New York Stock Exchange (NYSE) and a wholly owned subsidiary. The express purpose of the Tipsie is to facilitate the orderly buying and selling of Resource of Limited Life or (ROLLS), using the exchanges digital trading platforms or (TPs).

Almost DailyBrett Editor’s Note: 

Serious consideration was given to taking a pass on this blog’s annual “April Fool’s” post for obvious reasons. However, the strange global obsession with all things toilet paper is a strange global obsession. Buy reasonable amounts of toilet paper, if you can. More importantly, stay healthy. Stay very safe.

— TPSE —

https://ir.theice.com/governance/executive-management-team/default.aspx

 

 

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.

“You read Playboy for the articles, right?

“No, I look at the pictures too … ”

He was repeatedly labeled then-and-now as a “sexist pig.”

He was seen as a dangerous cultural rebel.

He was an illusionist. He pedaled fantasies at a desultory time.

He advocated an exciting, edgy new lifestyle for men.

He was regarded by some as a new-age-for-males philosopher.

Hugh Hefner was an editor and publisher, who will go down in the history books.

Some will miss him, many will not … regardless he made a difference.

“Shaken, Not Stirred”

Author Ian Fleming passed away far too early at 56-years young in 1964.

The accounts of his fictional hero James Bond found favor with dashing debonair U.S. President John F. Kennedy, a priceless endorsement for any novelist.

Fleming’s writing/personal interview also found its way onto the pages of Hefner’s Playboy, “Entertainment for Men.”

In reality, Fleming’s secret agent with a license to kill, James Bond (played superbly by Sean Connery) was everything the America male was not, entering the 1960s. Alas, Fleming lived only long enough to see his prose transformed into two movies, Dr. No and From Russia With Love. The first raised many eyebrows with Connery as Bond teamed with bikini clad Ursula Andress, playing Honey Rider.

Honey Rider swam nude in Fleming’s novel, but not for the 1962 movie adaptation.

Seventeen years earlier, Life Magazine captured the iconic Rockwellesque image of the American sailor passionately kissing a nurse in Times Square on VJ Day characterizing the advent of the Baby Boom (1946-1964).

And with the babies came piss, poop, vomit, crying, wailing and screaming. The preoccupation during years of rationing and the G.I Bill was raising children in suburban communities. We liked Ike, but life other than the Korean War/McCarthy-era Red Scare was more than a tad boring with cookie-cutter cars, crew cuts, skinny ties and white shirts.

Enter Hugh Hefner in 1953 with his scandalous Playboy with a scantily clad Marilyn Monroe on the cover. On the inside was a totally unattired horizontally posed Mizz Monroe on red velvet. Asked what was on during her famous pose, Monroe reportedly replied, “the radio.” The collector’s item inaugural issue of Playboy was an immediate sell out.

There was far more than the girl next door in subsequent issues. There were fast cars, exotic global destinations, tasty liquors, perfect suits, gambling, executive jets and a walk on the wild side. Men were shown how their lives could be, and how to rebel against mediocrity instead of merely running out the clock on their boring/mostly forgettable miserable lives.

Ian Fleming’s M16 James Bond epitomized the Playboy lifestyle with his ejector seat equipped Aston Martin, his vodka martinis, sun glasses at the windswept beach, goggles at the Alpine ski resorts, how he defeated the bad dudes and won over the Bond girl.

Sure beats working all day at the office orfactory and returning to the burbs for meat loaf.

“Life Must Have Purpose”

Meryl Streep playing the role of Mrs. Thatcher, and replied to Dennis’ marriage proposal stating that her life must be more than simply raising children. In reality, Margaret Thatcher was more than the first woman PM of the United Kingdom; she made a difference.

Life indeed had a noble purpose for the Iron Lady.

Almost DailyBrett subscribed to both National Geographic and Playboy during the years as they both took you to places you will most likely never visit in your lifetime.

Your author rejects sedentary lifestyles (no binge watching) that emphasize doing and achieving. Hugh Hefner and Ian Fleming through their editing and writing respectively changed the world. Their lives had purpose then and now.

Hefner and to less extent, Fleming, were both accurately accused as being sexists who objectified the fairer gender. Both are guilty as charged.

The real question in the eyes of the author of Almost DailyBrett is whether we are better as a society in that  men were encouraged to do more in their lives than go to work, raise children and watch television at night.

There is a big exciting world out there and we are fortunate to be here for a relatively short period of time. This proposition applies to both genders. Life does not need to be restricted and boring. It can be upwards to the right, and not just on Wall Street.

There needs to be respect and understanding, but that does not mean we can’t go out and have our vodka martini in an exciting foreign locale… shaken of course, but not stirred.

https://www.economist.com/news/obituary/21729969-founder-playboy-empire-was-91-hugh-hefner-died-september-27th

http://www.ianfleming.com/

https://almostdailybrett.wordpress.com/2012/01/10/the-decision-to-pose-for-playboy/

https://almostdailybrett.wordpress.com/2015/10/19/farewell-to-the-girl-next-door/

“Do I consider myself part of the casino capitalist process by which so few have so much and so many have so little by which Wall Street’s greed and recklessness wrecked this economy? No I don’t.” – Senator Bernie Sanders

Ever wonder why there are so few in the street carrying pitch forks?

Ditto for nocturnal torch-light parades?

Maybe the answer lies in the fact that Wall Street added $3.3 trillion in market capitalization (share prices x number of shares) since November 8. Translated: Investors are more than $3 trillion to the better since the election.

Whatever metric is used, the stock indices are sharply upward to the right: The NASDAQ increased 28 percent since the election, the S&P 500 is up 27 percent, and the Dow advanced 20 percent.According to Gallup, 55 percent of Americans owned individual stocks, stock mutual funds or managed 401(k) portfolios or IRAs in 2016. That figure is understandably down from 65 percent right before the economic crash in 2007, but it has been steadily advancing since then.

Almost DailyBrett will go out on the limb, and will contend the 55 percent number has grown since the historic 2016  election.

Predictably, the Gallup survey revealed that 88 percent of American families making over $75,000 are invested in individual securities, mutual funds and 401(k)s and IRAs. More than half of those (56 percent) making between $30,000 and $75,000 are invested in stocks.

The survey also revealed that 73 percent with bachelor’s degrees own stocks, mutual funds or invest retirement accounts, and 83 percent with master’s degrees or above also are investing in these same U.S. markets.

When one takes a second to ponder that 55 percent of middle-and-upper income Americans are participating in stocks, mutual funds, 401(k) portfolios and IRAs, the conclusion is obvious: America now has an investor class that is growing in numbers and wealth.

What’s the alternative for those investing for their retirement, their children’s education or that dream vacation? Bank interest rates that barely keep up with inflation? Speculative real estate? Stashing gobs of cash under the bedroom mattress?

And yet there was an ill-fated movement to tarnish America’s markets, Occupy Wall Street.

And now there are efforts in a handful of progressive states to impose a 20 percent “privilege tax” on the fees of financial advisors. Hmmm … wonder if this tax will be passed onto investors, the very same people who are trying to fund their retirement or college for their kids?

Attacking The Cash Cow?

“ … You could put half of Trump’s supporters into what I call the ‘Basket of Deplorables’. Right? The racist, sexist, homophobic, xenophobic, Islamaphobic — you name it.” – Hillary Clinton.

“ … There are 47 percent who are with him (Obama), who are dependent upon government, who believe that they are victims, who believe that government has a responsibility to care for them, who believe that they are entitled to health care, to food, to housing, to you name it … And so my job is not to worry about those people.” – Mitt Romney.

What do Mitt Romney and Hillary Clinton have in common besides being guilty of lambasting literally millions of people in one unwise campaign utterance?

They both lost the presidency.

Winston Churchill once said: “The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.”

Wall Street will never be perfect. The playing field has never been flat. Having said that, far more win with stocks, mutual funds, 401(k) plans and IRAs than lose. It has been upward to the right on a jagged line since 1929.

Maybe that is the reason why America has a more-than-half of its working age population investing in global markets. And for those investing, the six-plus months since the election has produced a record modern-era, bull market for any new president.

Granted, there will be those in the streets who bode ill for American markets, favor “privilege taxes” to stimulate more compulsory redistribution, and are maybe just a tad nostalgic for the mismanaged Occupy Wall Street debacle.

Do they really want to attack Wall Street and by extension America’s 55 percent and growing, investor class heading into the mid-terms of 2018 and beyond? Are these overheated rhetorical thrusts, smart politics?

If they relish in glorious defeat, they can insult America’s investor class to the content of their bleeding hearts.

They also should consider and ponder that America now has a new quiet majority, who fund their dreams with a simple click of the mouse while watching the tickers on CNBC.

http://www.gallup.com/poll/182816/little-change-percentage-americans-invested-market.aspx

https://www.whitehouse.gov/the-press-office/2017/06/01/statement-president-trump-paris-climate-accord

https://www.usatoday.com/story/money/markets/2017/04/26/millennials-and-investing/100559680/

https://www.wsj.com/articles/illinoiss-privilege-tax-proposal-forgets-citizens-right-to-leave-1495834522

https://almostdailybrett.wordpress.com/wp-admin/post.php?post=5922&action=edit

https://www.brainyquote.com/quotes/quotes/w/winstonchu101776.html

http://www.foxnews.com/opinion/2017/07/20/stuart-varney-trump-has-already-made-america-4-trillion-richer-with-just-six-months-in-office.html

 

 

 

 

 

 

“You can’t foment. You can’t create an impression a stock is down. You do it anyway because the SEC doesn’t understand it.” – Former Goldman Sachs hedge fund manager Jim Cramer

“Apple is very important to spread the rumor that both Verizon and AT&T have decided they don’t like the phone (iPhone). It’s very easy to do. It’s also easy to spread the rumor the phone is not ready for Macworld.”  — Cramer explaining how shorting hedge-fund managers drive down a company’s stock price through rumor mongering

“I want the Jim Cramer of CNBC (Mad Money host) to protect me from that Jim Cramer (Goldman Sachs hedge-fund manager) – Comedy Central’s Jon Stewart

Many of us watched Jon Stewart take apart Jim Cramer on Comedy Central’s The Daily Show With Jon Stewart. The legendary 2009 interview went viral, including Cramer’s bragging about short selling, even among those who do not subscribe to the notion of buying low and selling high.

Here’s a predictable sports metaphor that brings into question the morality of short selling.

Every sports fan knows there are teams that far-too-many of us love to hate (i.e. New England Patriots, New York Yankees, Los Angeles Todgers …). We will happily pop open a cold one and sit in front of the Hi-Def and root against these teams and many others. We want them to lose, and lose big.

Having acknowledged this indisputable fact of life, will we spend our hard-earned money to travel to their respective stadia or watch them on our home team fields, courts, ice rinks solely to indulge in an exercise of Schadenfreude, delighting in their misery when they lose? You are rooting against them and not necessarily for your team.

Don’t we have better things to do with our money and time than negative rooting?

Moving from metaphor to reality, should the cunning few take their discretionary investment dollars and place a trade – a short sell – with the intent of cashing-out based not upon a publicly traded company’s stock rising, but instead losing value for the vast majority of investors and their employees?

Before going any further, Almost DailyBrett must acknowledge that short selling is perfectly legal (it shouldn’t be), but the question remains: Is it moral? Yes, some may be wondering how morality and Wall Street work in tandem. Believe it or not, there is synergy when it comes to investing and morality.

For example, each of America’s 5,900 publicly traded companies on the NYSE or NASDAQ is legally required to practice fiduciary responsibility (don’t glaze over). Translated: Every company is obligated to do the best job possible to drive the top line (revenues) and raise the bottom line (net income or loss).

The beneficiaries of fiduciary responsibility are America’s Investor Class, the 55 percent of our nation that invests in mutual funds, bonds or stocks. When “Wall Street” is attacked, the hopes and dreams of literally millions for a comfortable retirement, their children’s college education, their donations to worthy charities, their once-in-a-lifetime vacations, are under siege as well.

The Big Short

“Stormy weather in Shortville … “— Tesla CEO Elon Musk tweet mocking short sellers

The literally millions of short trades fly directly in the face of the aspirations of middle-class and lower-upper class investors, who realize you can’t finance dreams through negligible bank interest rates and ping-ponging real estate. That’s why they turn En-masse to equities, bonds and mutual funds (e.g., IRAs and 401Ks).

For example, there are those (including the author of Almost DailyBrett) who invest in Elon Musk and Tesla. They are supporting the development of electric cars, ion lithium batteries and solar power, all intended to transport millions and provide energy – all without contributing to climate change.

And yet 31 million of Tesla’s (NASDAQ: TSLA) 163.1 million shares are sold short or about $8.46 billion in market capitalization or value that these traders are hoping will simply plunge big time to their greedy benefit.

Alas for them and hooray for the rest of us the Tesla short sellers are taking it in the shorts.

As we saw in the Oscar-nominated for Best Picture, The Big Short, there were cunning and callous short sellers who bet big time – and won – against the U.S. real estate market and thousands of underwater and underperforming mortgages.

They won, while literally hundreds of thousands lost their homes or were trapped in properties they could not afford, thus triggering the Great Recession of 2007-2008.

Almost DailyBrett believes the government regulates enough thank you very much. But should the feds (e.g., SEC, DOJ, FTC) take a long-and-hard look at short selling?

If the goal of the shorts is pure unmitigated greed, while literally hundreds of thousands suffer and see their hopes and dreams dashed, then short selling is not only wrong morally, but it should be frickin’ illegal as well.

http://www.goldmansachs.com/

http://www.biography.com/people/jon-stewart-16242282

http://www.cnbc.com/jim-cramer/

http://www.cc.com/video-clips/iinzrx/the-daily-show-with-jon-stewart-jim-cramer-pt–2

http://www.cc.com/video-clips/gliow5/the-daily-show-with-jon-stewart-jim-cramer-pt–3

https://www.nytimes.com/2015/12/11/movies/review-in-the-big-short-economic-collapse-for-fun-and-profit.html?_r=0

http://www.reuters.com/article/us-tesla-stocks-idUSKBN17522H

https://finance.yahoo.com/quote/TSLA/key-statistics?p=TSLA

“I love Yahoo, and I believe in all of you. It’s important to me to see Yahoo into its next chapter.” Yahoo! CEO Marissa Mayer in her July 25 employee letter announcing Verizon’s $4.8 billion cash acquisition of Yahoo!

What next chapter?mayerbook

Want to take an Internet pioneer, first-mover $125 billion company and transform it into an also-ran, acquisition target for four pennies on the dollar?

And to top it off, reward Yahoo! chief executive officer Marissa Mayer with more than $50 million in severance pay?

Wonder why so many are so upset with Wall Street?

What is it with high-accolade, lofty-expectations, lavaliere-strutting narcissistic chief executives, who are ostensibly hired to reverse the fortunes of struggling companies?

Much later, we all discover their real personal agenda was to simply put the corporation on the auction block, and to get paid handsomely for the privilege.

Where can I sign up for this lucrative gig?

The author of Almost DailyBrett will gladly say all the right things for a few years, bloviate at a few “developer” conferences, CES, SXSW and TED Talks and then when no one is looking, sell the company to the highest of low bidders and get rewarded for creating … nothing, absolutely nothing.

Hold That Horizontal Pose!

Alas, one thing your author will never be asked to do is pose for Vogue. Sorry, I don’t own a Michael Kors dress … and never will.mayer

Almost DailyBrett three years ago questioned why relatively new Yahoo! CEO Mayer would accept Vogue’s invitation for a horizontal spread in a fashion magazine? Was she trying to impress buy-side and sell-side institutional investors?

Women have long and justifiably complained about being objectified. What was telegenic Mayer doing with her Vogue reclining pose?

What did her PR team think about her proving once again that sex sells? Did her photo draw even more eyeballs to rival Google’s market-leading search engine?

Before you start thinking that Almost DailyBrett is solely focusing on the lucrative PR disaster record of one Marissa Mayer, please consider that many are still smarting over how Abhi Talwalkar drove LSI Logic into the ditch and received at least a $5.74 million severance payment for burying the company.abhi1

Your author served as the director of Corporate Public Relations for LSI Logic. Even though I left after 10 years to join Edelman Public Relations in December 2005, one could already see what Abhi had in mind … shed as many assets as quickly as possible to make the company more attractive to buyers.

As Almost DailyBrett previously reported, LSI Logic was the innovator of the application specific integrated circuit (ASIC) specialty semiconductor market for nearly 25 years under the leadership of founder Wilfred J. Corrigan.

It took Abhi less than nine years to end its existence, eventually accepting Avago Technologies (H-P’s former semiconductor business) for $6.6 billion offer in late 2013. LSI Logic is no more, but Abhi’s contract provided for the following:

  1. In the case of our Chief Executive Officer, a lump sum payment equal to 2.75 times his or her base salary and average bonus received over the preceding three years. In the case of a participant other than our Chief Executive Officer, a lump sum payment equal to two times the individual’s base salary and average bonus received over the preceding three years. 2. Full acceleration of all unvested equity awards. 3. Reimbursement of COBRA premiums for health insurance for 18 months. 4. In the event that a participant’s “parachute payments” are subject to the excise tax imposed by Section 4999 of the Internal Revenue Code, then LSI will make a supplemental payment to the participant in an amount that equals the excise tax on the parachute payments, plus any additional excise tax and federal, state and local and employment income taxes, on the supplemental payment. However, the total supplemental payment shall not exceed the sum of the participant’s (i) base salary immediately prior to the change in control, and (ii) target bonus for the year in which the change in control occurs.

Glad to see the “supplemental payment” would not exceed Abhi’s $2.09 million annual salary. Enough is enough … Right?

It’s even better that Vogue didn’t ask Abhi to pose horizontally in a Michael Kors dress.

His severance was obscene enough.

http://fortune.com/2016/04/19/verizon-yahoo/

http://www.forbes.com/sites/briansolomon/2016/07/25/yahoo-sells-to-verizon-for-5-billion-marissa-mayer/#7b9c799b71b4

http://www.forbes.com/sites/briansolomon/2016/07/25/here-is-marissa-mayers-final-letter-to-yahoo-employees/#54a12ae875ba

https://almostdailybrett.wordpress.com/2013/08/18/mayer-vogue-nasdaq-yhoo/

https://almostdailybrett.wordpress.com/2014/01/02/farewell-lsi-logic/

http://dealbook.nytimes.com/2013/12/16/avago-to-buy-lsi-for-6-6-billion/?_r=0

 

 

Remember when people were content to be unambitious, sleep until 11, hang out with their friends? You had no occupation whatsoever, maybe working a couple of hours a week at a coffee shop … Portland is a city where young people go to retire.” – Lyrics to the Portlandia theme song, “The Dream of the 90s Is Alive in Portland”portlandia90s

You don’t set an alarm. Why would you? You don’t need to. You wake up … whenever.

You reach over to your mobile device …Ahh, yes … your $2,555 + $642 for each dependent child monthly UBI (Universal Basic Income) check has been direct deposited into your communal credit union account.

Your minimal effort wage amounts to an annual salary of $30,660 for a single, $61,320 for a couple and $76,728 for a family of four.

Life is good. Life is always good. There are no more challenges.

Should you go back to sleep or do whatever?

What time is it anyway?

Since you don’t wear a watch, you really don’t know or care … You sleep comfortably knowing that you are — through your inaction — contributing to the end of welfare as we know it. The reason: The “safety net” extends to us all.UBI

Many support free education as a matter of right. But let’s pose an obvious question right now: Why do you need an education when a paycheck is heading your way regardless of what you know or don’t know?

Literally tens of thousands of Americans back extending Medicare benefits to everyone as a matter of right. Certainly Medicare-for-all will be an extension of Universal Basic Income (UBI). Right?

And how many on the left and on the right have complained vocally about our welfare system with its unemployment insurance, food stamps and disability programs?

Why not include everyone and be done with it?

Switzerland already voted on Universal Basic Income last month. It was nip-and-tuck, but UBI came up on the short-end, 77-23 percent.UBIBern

Fret not; every worthwhile movement endures character-building setbacks at the onset only to prevail. Didn’t Chairman Mao’s Long March begin with the first step? Besides, won’t we all eventually vote our self-interest for free-money from the government as a basic right?

Is There A Catch?

With any nifty proposition, there are always those naysayers who may raise some annoying questions about UBI.

What about the $20 trillion national debt and counting? Wouldn’t UBI become the ultimate entitlement program sending the stratospheric red-ink ledger out of the galaxy?

Wait a minute: Isn’t money simply a creation of capitalistic greed? And doesn’t the basic right to income trump (no pun intended) alles?

For example, the nattering nabobs of negativism will want to know how UBI will be financed. Easy, the ill-begot profits of publicly traded companies and related Wall Street transaction taxes will be redistributed to a fund for UBI payouts.

Instead of putting resources into new innovation, building a business, paying out dividends and rewarding stellar employees, the entrepreneurs/achievers at publicly traded companies and unicorns will redirect via the government the remainder (e.g., profit) between revenues and expenses to pay UBI recipients.

What would happen to corporations, companies, start-ups and small businesses, their employees and the products, we use on any given day? What would be their incentive to invest, meet challenges and overachieve?

Regardless of what you do or not do, a UBI check is going to be deposited into your checking account. So why make a fuss?UBI

Would global competitors (e.g., Japan, Korea, Taiwan, India) follow suit and provide UBI payments to their citizens? Or (gasp) would they continue to compete and work up-to-six-days-per-week to swiftly replace us as the leading economic power on the planet?

Maybe Almost DailyBrett is being a little too skeptical, and hopefully not cynical.

UBI proponents point to the end of capitalism as if that is a desirable goal. With UBI, we would all be grateful for (dependent on) the largesse of the nanny state. The much-vilified Clintonian welfare system would end. Conceivably, the leisure industry would prosper because everyone would be on permanent vacation.

And yet your blog author is primarily bothered by one overriding concern: Is it right to receive money for something I did not earn?

Let’s all compete to the best of our ability and see what happens. Hopefully, there will be more than a few shekels for us all instead of a paycheck we didn’t earn.

http://www.nytimes.com/2016/03/03/technology/plan-to-fight-robot-invasion-at-work-give-everyone-a-paycheck.html?_r=0

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

https://www.youtube.com/watch?v=mBt4HlcDUDw

http://fivethirtyeight.com/features/universal-basic-income/

http://www.bbc.com/news/world-europe-36454060

http://www.bloomberg.com/view/articles/2016-06-06/universal-basic-income-is-ahead-of-its-time-to-say-the-least

https://www.google.com/#q=625+Swiss+francs+to+dollars

 

 

 

 

 

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