SUBSIM Radio Room Forums - Stock Market update: Everybody panic!

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Regarding Apple now paying taxes, nothing to do with "Trumponomics":
(from Neal's link):

"The fuse was lit when Apple executives led by chief executive Tim Cook were summoned before a US senate committee in 2013 to be questioned on the structures used in relation to profits earned overseas. At the heart of this was a company which didn’t pay its taxes anywhere.

Apple, the grand masters of tax planning, had invented a new trick – you might call it tax residency in the cloud. The fact that the company involved was incorporated in Ireland put us right bang in the middle of the story, of course

And then came the 2016 European Commission decision that Ireland had given Apple illegal State aid in the way it dealt with the company’s tax affairs here. Apple owed Ireland €13 billion plus interest and penalties as a result, the commission concluded.

Like many other big companies, Apple had pushed the tax game too far."

Apple has a plan ... :hmmm:

https://www.reuters.com/article/us-a...-idUSKBN1F62FJ

Apple plans new U.S. campus, to pay $38 billion in foreign cash taxes

Quote:

(Reuters) - Apple Inc (AAPL.O) will open a new campus as part of a five-year, $30 billion U.S. investment plan and will make about $38 billion in one-time tax payments on its overseas cash, one of the largest corporate spending plans announced since the passage of a tax cut signed by U.S. President Donald Trump.

Quote:

Originally Posted by Skybird (Post 2538146)

Problem there is that needed structural reforms do not get carried out, Trump is not working on profound structures, but on symptoms. The effects therefore I expect to last not for too long. Reagan did the same, and had medium range benefits. Ater them ending, the state debts went way up. Also, the dollar is too weak compared to what the stock market values claim to indicate, which means that Amerina money by Apple may return to the US, but porivate investors moneya is being exported form the Us onto other stockmarkets, currently Europe, however strange that seerms to be. This is a vicious circle,. since it will klure more and more mnoney out of the Americna market, which then will shrink demand in the US.

I predict Trumponomics will party for two years, not longer.

And this, more fundamental cnsideration. Does anyone seriously belioeve that the real world material value of proucing industries and economies can rais ein in total values within one year by 20, 30, 40%...? Does anyone seriously believe a company that produces nothing, like facebook, seriously is worth dozens of billions of bucks...? Finally, the biog four, Micosoft, Google, Apple, buy off competitors, and do so just to remove them from the competition. We are talking about widenngn de facto monopolies and dependencies. Does anyone seriously believe there will be no mid- to long-term punishment from doing so?

One should never assess the state of an economy by the stockmarket graoh alone. ;) Many famous and good stock traders do not look at such graphs even once, not for a single company, not for a whole economy system. Gamblers do that, hoping to get away with their bets. And some will. Myself, I place bets only with money I have in excess, I do not bet with money that I depend on.

Nothing new under the sun - expect what already has been fogotten. Although it is just one and a half decade ago...

I think with congress about the best you can get is to work on symptoms, but I fear while we see some big short term gains, unless congress and Trump start dealing with the realistic cures, obvious all this isn't going to hold much longer than one term. Course, treating symptoms is usually the first step, see if actual cure fixes come later down the pike, but I don't think so, not with our congress. I think for those of us that invest in the stock market, the higher it goes, the more I think when should I sell or reinvest safer places..

Quote:

Originally Posted by Armistead (Post 2538168)

I think for those of us that invest in the stock market, the higher it goes, the more I think when should I sell or reinvest safer places..

Couldn't agree more and I am now at the stage in life where I only invest in fixed rate savings bonds. The returns aren't as good but all the risk element is done away with and the smaller return is guaranteed.

marketwatch.com/story/how-wall-streets-fear-gauge-is-being-rigged-according-to-one-whistleblower-2018-02-13

I remember when gold was $500 an ounce :yep:

https://www.reuters.com/article/us-m...-idUSKBN1HM0JI

Quote:

Gold has benefited in recent days as a safe-haven asset amid a U.S.-China trade dispute and the escalating conflict in Syria, which also pushed oil above $70 per barrel due to concerns about a spike in Middle Eastern tensions.

Gold, often used as a store of value in times of political and economic uncertainty, could rally towards $1,400 per ounce after two consecutive weeks of gains.

“If we do break above $1,365, that next week we would be very bullish,” said Aslam.

Hang on it may be a wild ride!:yeah:

The Crash Of 1929: "Can It Happen Again?" :o:06::hmmm:

Quote:

Submitted by GnS Economics

Quote:

In the 4th of February, we published a blog entry detailing the similarities of the current stock market environment with that before the stock market crash in 1987. On February 5th, the Dow Jones Industrial Average (DJIA) experienced the worst daily point decline of its history. Since then, the stock market has recovered, but are we out of the woods?
At the aforementioned entry, we also warned that the situation in the global economy actually resembles more of the time before the Great Depression than that before of the Black Monday in 1987. Worryingly, the same holds for the US equity markets. In fact, almost all of the developments that led to the Great Crash of 1929 are already visible in the US. We may thus be heading towards the worst asset market crash in 90 years.

https://www.zerohedge.com/news/2018-...t-happen-again

My alarm bells started to ring when I watched at it all and realised that I found it impossible anymore to make reasonable assumptions on when the trend, upwards in past years, would change and reverse, maybe even quickly collapse. It was then when I bailed out, for staying engaged to me was not more than indeed purely gambling from then on. Since then I have transformed a lot of my treasure into mobile, anonymous real value. I may miss out on possible stockmarket gains meanwhile as long as the rally of the past years still continues. But I cannot get hit by any major market collapse, which tend to happen quickly and faster than you can react to as a private investor.

Also, as a small nice side-effect, I do not generate personal profits of which the state syndicate can benefit by blackmailing additional protection money. More than the protection money I get robbed of anyway, I mean.

Following Austrian economic wisdom, I am prone to loose possible wins in stocks, yes. I know that, I am fully aware of that. But these wins - by staying engaged - now can only be realised by taking incalculatable (in my opinion) risks, with time probably running out. Staying engaged when chances for good and bad endings are 50:50 is not strategic thinking for me - that is gambling, and unpredictable in outcome and timing.

Private American investors are fleeing from fonds in huge numbers since three months, btw. It has been taken close note of by professional traders.

We are again in a phase of crazy building projects, and this means no good. Mega-Skyscrapers Are A Sign Of Economic Collapse, no joke.
"Construction of the world’s tallest tower is usually a sign of hubris and overconfidence. And it’s often associated with bubbles."

https://www.seeker.com/mega-skyscrap...240336126.html

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

:o

I found this to be interesting about day trading in Russia :yep:

https://www.msn.com/en-us/money/mark...lls/ar-AAwoGGa

Quote:

When Natalia Orlova isn’t working a $400-a-month job at a Moscow factory that makes Cold War-era space rockets, she’s glued to the trading app she uses to speculate on oil.

Lately, the 54-year-old has made a small fortune as crude jumped to 3-1/2 year highs, some of those gains linked to America’s latest sanctions on Russia. Like tens of thousands of Russians, Orlova says day trading is the key to surviving economic gloom: she just bought a new Infiniti and is saving up for an apartment for her two grandsons.

“Financial markets are the one place where you can really change your life and pull yourself out of poverty,” Orlova said at a café near her three-room 1950s apartment in a western suburb of Moscow, smiling as she points to the tablet she’s just pulled out of her floral purse. “Since yesterday evening, I’m up 1.5 million rubles ($24,000).”

I hate Sonic commercials with the same two (2) dudes doing their ads, but I sure approve of their food. I didn't know they were worth that much though.

https://www.upi.com/Top_News/US/2018...7951537895313/

Quote:

Inspire Brands, the company that owns Arby's, Buffalo Wild Wings and Rusty Taco, announced Tuesday it will add Sonic to its fast-food portfolio.

Inspire Brands will purchase Sonic Corp. for $43.50 per share, a transaction worth about $2.3 billion, Sonic said.

Quote:

Originally Posted by Rockstar (Post 2551152)

Hang on it may be a wild ride!:yeah:

The Crash Of 1929: "Can It Happen Again?" :o:06::hmmm:

https://www.zerohedge.com/news/2018-...t-happen-again

YES

As in many other areas, I'm not an expert on world or states economy.

I know how to balance my own budget-but that's all.

I am however convinced that, all these economical crashes we have had since the big one in 1929, is aftershock after this big crash in 1929.

Well it's my own theory-Can't prove it.

Markus

Ford and VW might become partners :o

https://finance.yahoo.com/news/vw-pl...163710750.html

Quote:

An electric van, the ID Buzz, is due to be built at VW's plant in Hannover, where its T6 Van is made, the source said.

To free up production capacity for electric cars in Hannover, VW's transporter vans could be produced at a Ford (F.N) plant in Turkey, the source added.

VW and Ford are in "exploratory talks" to develop self-driving and electric vehicles in an alliance meant to save them billions of dollars, Reuters reported last month.

German VW factories in Emden, Zwickau and Hanover, which all build combustion-engined cars, will switch to electric ones in under the plans being considered, the source said.