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  • Apple (AAPL): FQ4 EPS of $8.67 misses by $0.08. Revenue of $36B (+27% Y/Y) beats by $200M. 26.9M iPhones sold, 14M iPads, 5.3M iPods. Shares halted. (PR[View news story]
    You need to recalibrate your sarcasm detector.
    Oct 25, 2012. 04:47 PM | 30 Likes Like |Link to Comment
  • Apple (AAPL): FQ4 EPS of $8.67 misses by $0.08. Revenue of $36B (+27% Y/Y) beats by $200M. 26.9M iPhones sold, 14M iPads, 5.3M iPods. Shares halted. (PR[View news story]
    AAPL officially out of business for good
    Oct 25, 2012. 04:39 PM | 16 Likes Like |Link to Comment
  • Investors Should Not Try To Time Markets [View article]
    "To take advantage of the market gains, one is better off staying fully invested as opposed to repeated buying and selling."

    This is an utterly false choice. The fact that it is presented in the same article (although, at two paragraphs, one wonders if this piece actually constitutes an article) as a chart showing that decade-long investments can easily yield 0% returns (or worse) makes it almost laughable.

    Clearly, investors who recognized that the market's bull trend was broken in 2000 or even 2001 and sold at least a portion of their holdings would have achieved better returns than those who simply held their positions at all costs. Ditto for 2008, and for recognizing the beginnings of new bull trends in 2003 and 2009. It is up to individual investors to make this judgment in situations like the current downturn. Telling them that their only options are to hold forever, and achieve 0% returns in perpetuity, or become a day trader and potentially lose everything, is irresponsible advice and shallow analysis.
    Sep 12, 2011. 12:57 AM | 12 Likes Like |Link to Comment
  • The Traders Did It! [View article]
    The SEC was busy downloading pornography, as I recall. That may have had something to do with it.
    Jul 13, 2012. 01:11 AM | 11 Likes Like |Link to Comment
  • Gold 'Believers' Appear Distraught Over Dollar Strength [View article]
    "I bought some bullion at $750 and still hold it. If I sell it today I make money which means I created wealth."

    This ridiculous claim is especially perplexing coming from the same type of person who no doubt thinks that gold's rise is entirely due to currency debasement by central banks. Logically, then, you must believe that the Fed creates wealth when it devalues the dollar. Every night when you're sleeping, Bernanke swoops down in his helicopter and sprinkles magic pixie dust on the bullion that makes it more useful and more valuable.

    In reality, if Joe bought an ounce of gold for $750 from Steve last year, then sells it back to Steve for $1750 this year, all that has occurred is that $1000 has moved from Steve's wallet to Joe's. All other things being equal, the world has exactly as much wealth as it did last year--Joe just has a slightly bigger share of it, and Steve a slightly smaller share. The world is not any richer or better off as a whole, and hence, no wealth was created. How could it have been? In what form would it exist? No one did anything. The gold was the same bar last year as it is this year.

    The reason that rising equity prices imply the (expected future) creation of wealth is because the company in which the equity is held is performing some action (be it producing a good or performing a service) that provides more utility to its customers than the company expended in the process. Gold miners create wealth by finding, extracting, and refining worthless gold ore into much more worthwhile gold bullion. After that, all the bullion can do is change hands.
    Sep 23, 2011. 06:26 PM | 11 Likes Like |Link to Comment
  • Gold 'Believers' Appear Distraught Over Dollar Strength [View article]
    This is classic end-of-the-world cult leader psychology right here. If the price of gold goes up, the thesis is confirmed. If the price of gold goes down, the thesis is confirmed. When no piece of evidence can refute your thesis, you're not investing rationally.
    Sep 23, 2011. 12:26 PM | 11 Likes Like |Link to Comment
  • Time to Short Stocks? [View article]
    I continue to hear the argument that there was no basis for this crash, and corporate earnings growth is the proof. You almost never hear the reverse of this argument: there was no basis for the extent and the duration of the post-recession bull. The markets returned to bear territory in mid-2010 and they only re-entered bull territory because the Fed artificially re-inflated asset prices. The bandaged-up bull started looking sick again back in February of this year, and surprise, started looking terminally ill once QE2 ended. There's not going to be some concrete event that "causes" a crash until we're deep into bear territory.

    In short, how long can a bull market continue with sky-high unemployment, non-existent GDP growth, and consumer spending on the decline? What good are trailing P/E ratios for assessing valuations, if those previous earnings are unsustainable?
    Aug 11, 2011. 06:19 PM | 11 Likes Like |Link to Comment
  • Pres. Obama weighs in on Bank of America's (BAC) new debit card fee: "You don't have some inherent right just to - you know, get a certain amount of profit... You have to treat [customers] fairly and transparently." The banking industry reacts: "As a direct result of the Durbin Amendment, consumers have started paying for financial services they previously enjoyed free of charge."  [View news story]
    It's not inexperience, it's open hostility. Obama does not even believe in property rights--the government merely allows corporations to collect profits, until it decides they have made enough, just like it merely allows individuals to earn money, until it decides they have made enough. ("At some point, I think you've made enough money.") But of course, it's not a two-way street. If you decide that the government has collected enough revenue, you're not allowed to say so.
    Oct 4, 2011. 10:39 AM | 10 Likes Like |Link to Comment
  • 'Buying Dividend Stocks For Income' Arguments Don't Make Sense [View article]

    Please work on your copy editing.
    Aug 31, 2011. 11:59 AM | 10 Likes Like |Link to Comment
  • Housing Plan Gains Momentum [View article]
    Savers and the fiscally responsible, rejoice! Once again you will subsidize the profligate lifestyles of your neighbors. You already bought them a Prius they couldn't afford, and fancy energy-efficient appliances you can't afford; you've been subsidizing the mortgage on their house, all the while paying them not to look for work--now it's time foot the bill to refi their mortgage at a lower rate than yours. As things stand now, these folks just don't have the same advantages you do. Unless we help them continue their borrowing spree, what hope do we have of achieving real prosperity again? Isn't it the fair, decent thing to do?
    Aug 29, 2011. 02:55 PM | 10 Likes Like |Link to Comment
  • Gold Bubble Is Epic [View article]
    "But gold's PRICE has far outstripped gold's VALUE already."

    What is gold's value in USD?
    Aug 12, 2011. 05:33 PM | 10 Likes Like |Link to Comment
  • Apple (AAPL): FQ4 EPS of $8.67 misses by $0.08. Revenue of $36B (+27% Y/Y) beats by $200M. 26.9M iPhones sold, 14M iPads, 5.3M iPods. Shares halted. (PR[View news story]
    Here come the AAPL apologists turning a small miss into a beat.
    Oct 25, 2012. 04:46 PM | 9 Likes Like |Link to Comment
  • Don't Fall for Today's Market Head-Fake [View article]
    Thank you, orvinfive, you beat me to it.

    For those interested in a nice illustration of inflation-adjusted closing prices over the last several decades, including when secular bull and secular bear markets occurred, see the following:


    While I think it is safe to say that the 2000 tech bubble was indeed somewhat above the long-term trendline, this is really not the case for the 2007 housing bubble and the 2011 peak. Anyway, I found the remainder of this article to be largely unsubstantiated conjecture.
    Aug 9, 2011. 06:01 PM | 9 Likes Like |Link to Comment
  • Microsoft (MSFT) officially launches Windows 8 at an NYC event (live blog) that's light on new details. More importantly, a flurry of Windows 8 reviews are out. Like others, David Pogue isn't a fan of Microsoft's efforts to fuse two UIs: "TileWorld is fantastic for touch screens ... Desktop Windows is obviously designed for the mouse ... you can’t live exclusively in one world or the other." The Verge has similar concerns, but is more positive about Win. 8's tablet potential. "Picking up a tablet PC with Windows 8 makes an iPad feel immediately out of date." (more[View news story]
    I used Win 8 for a few weeks and I can confirm that it is significantly faster across the board than Win 7 (running apps, startup, you name it), which was already widely praised for its speed.

    I would also disagree with the assertion that because it has been optimized for touch, desktop users are getting the shaft. It took time to get used to the new ways of navigating the operating system, but there were very few things that were really annoying on my desktop PC.
    Oct 25, 2012. 01:04 PM | 8 Likes Like |Link to Comment
  • Our infrastructure is in crisis, and the federal government has to step up and do something to fix it, says former Pennsylvania governor Ed Rendell. Many of the problems aren't local, but regional in nature and need a federal approach. His big government fix? Create a National Infrastructure Bank and pass a transportation bill that will pump around $200B a year into the bank over the next 6 years to fund improvements. (video)  [View news story]
    Seriously? $1.2 trillion? This is the path we're now on--we've borrowed and spent so much that it doesn't seem to matter anymore when someone suggests another trillion or two. Things have always been bad, as far as the national debt goes, but this really is a whole new kind of bad. As they say, "the road to hell is paved with good intentions." And Chinese lending.
    Nov 17, 2011. 08:03 PM | 8 Likes Like |Link to Comment