Yep, Bitcoin Was a Bubble. And It Popped.

Nice opinion piece that ends with a simple and well known lesson: “If something is too good to be true, it usually is.”

Yep, Bitcoin Was a Bubble. And It Popped.
https://www.bloomberg.com/view/articles/2018-12-11/yep-bitcoin-was-a-bubble-and-it-popped

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Wall Street Needs More Market Indexes. Seriously.

I found this an interesting article regarding active vs. passive investing. Funds that “hug” a passive index by holding that index plus a few low conviction picks may be weeded out. Why? The fees to manage what is essentially a passive portfolio will likely outweigh any minuscule risk-adjusted return performance boost over the index itself.

Perhaps the old core (75% index) and explore (25% active picks) approach needs to be either 100% core or 100% explore. Now, how does one develop an alternative index (core) or the right number of high-conviction stocks (explore)…

Wall Street Needs More Market Indexes. Seriously.
https://www.bloomberg.com/view/articles/2018-12-10/wall-street-fears-the-wrong-index-bogeyman

Apple’s iPhone Subtraction Demands Some Addition

I also agree that, in the name of transparency, it would have been nice to see Apple continue the practice of reporting unit sales. But, Apple is the largest or second largest corporation on earth. They must be doing some things right.

However, Apple’s decision to withhold unit sales data provides an opportunity for someone to infer unit sales from other publicly available data.

How many current and former students out there would like to take on that challenge? Could be an interesting research project…

-Dr. Moore

Apple’s iPhone Subtraction Demands Some Addition
https://www.bloomberg.com/view/articles/2018-11-29/apple-s-iphone-subtraction-demands-some-addition

Senior Citizens Are Replacing Teenagers as Fast-Food Workers

As I read this article, I thought of my son. My son, now a college freshman, has never had a job. This is one thing I wish I had pushed harder for over the years. But, being across the country, there’s only so much letters, phone calls, and infrequent visits can do.

So now we have a generation or two not accustomed to working. Corporations, in order to build shareholder wealth, now recruit from retirement homes, churches, and AARP. Who would have thought it?

Well, hopefully my son reads this post. Son: you better get good grades because school is your only job now. If you perform poorly, do not expect me to further subsidize the endeavor. At that point you will have to do the unthinkable: get a job to pay for your own food and shelter.

-Dr. Moore

Senior Citizens Are Replacing Teenagers as Fast-Food Workers
https://www.bloomberg.com/news/articles/2018-11-05/senior-citizens-are-replacing-teenagers-at-fast-food-joints

What Global Slowdown? Japan Inc. Is Roaring Ahead

U.S. corporate tax breaks lead to bonuses and stock buybacks. Japanese corporate tax breaks are tied to reinvestment in R&D, training employees, and purchasing equipment. Maybe the policy makers in our government can reconsider blanket tax cuts in the face of this “new” evidence (read: common sense).

What Global Slowdown? Japan Inc. Is Roaring Ahead
https://www.bloomberg.com/view/articles/2018-10-10/japan-s-companies-ramp-up-spending-after-tax-change

Unraveling a Tesla Mystery: Lots (and Lots) of Parked Cars – The New York Times

Apologies if this is a repeat.

Interesting article. Here is one quote that caught my eye:

“Over the summer, Tesla advertised online for technicians to repair vehicles coming off the assembly line, suggesting that a significant number needed rework.”

Pause. Repair vehicles coming off the assembly line? Why not fix the assembly line or product design that produces defective vehicles?

I wonder if Musk will complain about all of the public exposure of activities such as this. If so, how could he defend going public and having repeated rounds of seasoned offerings? How could one reconcile accepting public money (IPO, SEOs) but not accepting scrutiny from the public that provided the money?

The article notes that the next quarterly report will be scrutinized by the SEC. This could get more interesting…

-Dr. Moore

New York Times article:

https://www.nytimes.com/2018/10/01/business/tesla-cars-questions.html