The Korean government is preparing to ban the trading of crypto-currencies on exchanges. The country's Minister of Justice, Park Sang-ki announced “Cryptocurrency trading is looking similar to speculation and gambling. South Korea’s [cryptocurrency] trade is considered abnormal abroad.” We have written skeptically about crypto-currencies many times at Youngresearch.com (see here, here, here, and here for a sample). Despite structural issues facing the use of cryto-currencies as a normal means of transaction, the biggest threat to the currencies has always been regulatory. China was the … [Read more...]
Archives for January 2018
Amazon Seeks New Office Space in Boston
Amazon is seeking more office space for its existing operations but the move could foreshadow its selection of its next headquarters. The Boston Globe's Tim Logan reports: Amazon is on the hunt for as much as 1 million square feet of office space in Boston, adding a new level of intrigue to the retail giant’s plans as it whittles down the list of the cities competing for its second headquarters. The Seattle company is negotiating with a Seaport developer to lease an entire office building, and possibly two, to continue its expansion in the city, according to real estate industry … [Read more...]
Foreign Car Makers Build in America
With the announcement of a new automobile manufacturing plant in Alabama to be shared by Toyota and Mazda, foreign car companies are on track to build more vehicles in America than the Detroit Three. Adrienne Roberts and John D. Stoll report in the WSJ: In the first quarter of 2018, foreign makers are expected to produce 1.4 million vehicles in the U.S., WardsAuto.com projects, equaling their American rivals for the first time. That’s a leap from the same period last year, when foreign companies trailed Detroit auto makers by more than 100,000 vehicles, or roughly 10%. In coming … [Read more...]
My 2018 Investment Perspective
I’ve always been amazed at how quickly investors forget what it feels like to lose money. One of my favorite economists, whom will remain unnamed, is a constant stock market cheerleader. He’s never met a market he hasn’t liked. I love his optimism and I too believe, like he does, that Trump’s tax cuts will keep us chugging along for some time. But that doesn’t mean stocks will always rise like the sun. Where I take issue with this perma-bull economist is his call that the bull market in bonds is over. He also says that bonds, more than stocks, are in bubble territory. He takes the … [Read more...]
Crypto-Mania has Gone Mainstream
Crypto-Mania has gone mainstream, reports Bloomberg. Kodak, a household name to those over the age of 35, saw its shares soar over 270% over the last two trading days. What is the catalyst for the Kodak share price surge? The company announced that it will use blockchain technology and launch a "photo-centric cryptocurrency" called Kodakcoin. I wish I were kidding. What are crypto-currency investors thinking? If you are wondering why the cryptocurrency bubble hasn't yet popped, a quote from Warren Buffett may shed some light. “In terms of cryptocurrencies, generally, I can say almost … [Read more...]
Amazon Reveals Amazing Numbers on Prime
In 2017 Amazon shipped an amazing 5 billion items to customers who were part of its Prime membership program. The year was the first that Amazon has released such detailed information on its Prime business. TechCruch reporter Sarah Perez writes: Amazon still won’t officially reveal how many consumers worldwide participate in its Amazon Prime membership program, but it did today offer a few new stats related to that program’s adoption and growth. The company on Tuesday announced that more new, paid members joined Prime worldwide in 2017 than any other year. It also noted that over 5 billion … [Read more...]
Investors Throw Caution to the Wind
As the bull market rally marches on for what seems like forever, investors who typically are concerned with risk are throwing caution to the wind. Gunjan Banerji reports in The Wall Street Journal that investors who normally hedge their positions have decided buying downside protection is a waste of money. She writes: Investors with significant positions in stocks often look to offset that risk by buying put options on stocks or major stock indexes, like the S&P 500. These contracts are a form of insurance that pay out when stocks fall. But with the Dow Jones Industrial Average … [Read more...]
RAGE Gauge: January Euphoria
Investors are in what Bloomberg writer Adam Haigh calls a euphoria today. According to my RAGE Gauge, Americans are still not factoring in much, if any, risk. While the economy is strong and the stock market is up, it's always a good idea to be wary when others are not. When you hear words like euphoria being used to describe investor mentality, it pays to be skeptical. Haigh writes: Euphoria on Wall Street that stocks can just keep on building on record highs is getting so stratospheric that it’s reaching levels that previously signaled a slump. Analysts are ratcheting up their forecasts … [Read more...]
A Surge in Truck Orders Reflects Economic Boom
Orders for heavy-duty trucks in the U.S., Canada and Mexico surged 76% in December (compared to the year before) to 37,500. Erica Phillips writes of truck demand in the WSJ: “It’s been building,” said ACT analyst Kenny Vieth. “You typically expect a good year-end, but we did see a change in the pace of orders starting in October.” Soaring demand in the fourth quarter led to full-year order growth of 59% after a slump in 2016, Mr. Vieth said. In the last weeks of 2017 freight rates reached some of their highest levels in more than three years, as retailers scrambled to restock during the … [Read more...]
Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future
One of my takeaways from the book Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future by Ashlee Vance, is Musk’s ability to stay focused on his long-term goal of putting humans on Mars. At his rocket company, SpaceX, there was some grumbling from employees about when the company would file for an IPO enabling them to cash in on their rigorous years of work for the task master Musk. Here’s his email to employees (my emphasis in bold): Per my recent comments, I am increasingly concerned about SpaceX going public before the Mars transport system is in place. Creating the technology … [Read more...]
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