In the early days of Coca-Cola, there were trace amounts of the drug cocaine in the drink. Once the drug was found to be unsafe, the company removed it. Today though, the Coca-Cola Co. is exploring adding a new drug to its drinks, cannabis. James Fontanella-Khan and Alistair Gray report in the Financial Times: Coca-Cola is exploring entering the budding cannabis drinks business, as the iconic beverage company seeks new opportunities to offset slowing soda consumption. The world’s largest beverage group by revenue is “closely watching” the cannabis drinks sector, which uses the … [Read more...]
Archives for September 2018
Hydrogen Trains on the Rails in Germany
Is hydrogen power the next evolution of railroading? In Germany, hydrogen powered locomotives are taking to the rails . Stanley Reed reports in The New York Times: In a breakthrough for a green fuel, two hydrogen-powered trains are expected to go into commercial service Monday on a rail line in northern Germany near Hamburg. The trains, which will serve cities including Bremerhaven and Cuxhaven, will be powered by hydrogen fuel cells that generate electricity through a chemical reaction. The trains are being promoted as a cheaper alternative to stringing wires on rail lines that are not … [Read more...]
How to Diversify Your Portfolio the Right Way
Diversification is a must, but there is a right way to diversify and a wrong way. Loading your portfolio with eight different stock ETFs may minimize stock-specific risk, but in a nasty bear market, all eight of your ETFs are likely to get bludgeoned. The right way to diversify is to include assets that tend to zig when others zag. Counterbalancing is key here and the all-time counterbalancing champion is Treasury bonds. As a measure of the powerful counterbalancing force of Treasury bonds, consider that in 22 of the 24 bear markets since the 1920s, intermediate Treasuries have risen in … [Read more...]
Your Retirement Life: “The Cheapest Health Insurance There Is”
Tom, a friend of mine, recently sent me an email about what he called the four pillars of health: "Sleep, eating, movement and stress management." The email was in response to my post on the importance of exercise, Your Retirement Life: Do Something. Tom attached to the email an article from The New York Times about how exercise is the closest thing there is to a wonder drug. What struck me most of all was when he called a pair of shoes and regular walking "the cheapest health insurance there is." Earlier this year Fidelity estimated that the average retired couple would spend … [Read more...]
The Prospect of a Decade Long Asset Boom Reversal is Worrying
Writing at the Financial Times, Michael Mackensie explains that a reversal in the the decade long, quantitative easing fueled boom in asset price is worrying. He writes: The stellar ride asset prices have enjoyed since the demise of Lehman Brothers dominates the financial system. And the prospect of a reversal is rightfully worrying. Years of ultra low, and in some cases negative, interest rates, alongside massive quantitative easing programmes, have been a grand experiment in monetary policy. Low rates have compelled investors to seek higher returns from riskier assets such as equities, … [Read more...]
China Asks Wall Street How to Reform its Laws
China wants to know what Wall Street thinks it should do to foster better ties with U.S. business. The country's leaders sent invitations to Wall Street firms to join a summit chaired by former governor of the People’s Bank of China Zhou Xiaochuan, and ex-president of Goldman Sachs, John Thornton. The summit is set to look at specific solution, not merely boilerplate platitudes about "working together." Reuters reports: Attendees will also meet with Chinese vice-president Wang Qishan on Monday morning after the full-day Sunday session, according to an invitation reviewed by Reuters. Zhou … [Read more...]
Are Today’s Bitcoin Investors Making the Same Mistake as Isaac Newton?
I wrote this back on August 7, but it's worth posting again in light of recent crypto-volatility. Writing in The Wall Street Journal, Andy Kessler explains the mistake Isaac Newton made with his investments in the South Sea Co. After investing well and earning 100%, Newton initially sold his shares profitably. But when the South Sea Co.'s shares began to take off into bubble territory, Newton was afraid of missing out and invested once again, ultimately losing what would be millions in today's dollars. Kessler writes of today's bitcoin investors: Why relive this painful history? Because … [Read more...]
Patience and Profits in Pipeline Shares
According to Energy Transfer Partners CEO Kelcy Warren, making money in pipelines right now is so easy a monkey could do it. That follows a strong earnings season for pipelines, a booming U.S. oil industry, and regulatory relief from the Trump administration. In The Wall Street Journal, Ryan Dezember reports on these developments, writing: From a peak in August 2014, the Alerian MLP index lost 63% before bottoming out in February 2016. MLP shares rebounded somewhat alongside rising U.S. oil prices but were dealt a fresh blow in March. On March 15, the Federal Energy Regulatory … [Read more...]
Will Turkey’s Rate Hike Be Enough to Calm Lira Traders?
Once confidence in a currency is lost, it's hard to get it back. Turkish central bankers are trying hard to hold the public's confidence in the lira by hiking interest rates to 24%. At The Wall Street Journal, David Gauthier-Villars explains the central bankers' efforts to maintain control. He writes: The monetary-policy decision could help ease investor concerns over the central bank’s independence from Turkey’s President Recep Tayyip Erdogan, whose call for lower rates earlier Thursday had weighed heavily on the lira. “This was much bigger than expected. It sends a signal to the market … [Read more...]
Apple Watch Could Save Lives with New Capability
Apple has built into its new Apple Watch the ability to perform an electrocardiogram, or ECG. Owners who find troubling data from the test could then share it with their doctor. NPR's Avie Schneider reports: Apple unveiled three new iPhones, including two with bigger displays, but perhaps the more dramatic announcement from Cupertino, Calif., on Wednesday was its new Apple Watch, with the new health-related tools. The Apple Watch Series 4 will let users take an electrocardiogram, or ECG, and share it with their doctor. Apple said it's the first ECG product offered over the counter … [Read more...]