Home > Daily Reading on the Financial Markets, Financial Ponzi, investing, Stock Market > Daily Reading on the Financial Markets: 8/25/11

Daily Reading on the Financial Markets: 8/25/11

Rolling Stone’s Matt Tiabbi on the banks and Obama administration’s attempt to sweep foreclosure lawsuits away.

The unintended consequences of QE2, from the Financial Times.

Steve Jobs resigns as Apple’s CEO.  Can Apple’s greatness continue without Jobs?

Minyanville on whether gold is correcting or crashing.

Cullen Roche on gold’s correction.

Or, from Zero Hege, it could just be the gold margin hike from the CME at work.

Chris Kimble points out the extreme price in Treasuries and suggests maybe it’s time to get short.

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  1. August 25, 2011 at 11:40 am

    I think Apple will be ok without Jobs as CEO. On the other hand, I think the Buffett investment in Bank of America is the real (good) news today. What’s your take?

    • August 25, 2011 at 12:23 pm

      I am a long term Apple bear. More with my heart than my head (I view Apple as – ironically – “Big Brother”… utterly controlling to point of domineering in their little… err, big… Apple world), but the resignation of Jobs locks it in. At some point I’ll buy a way out of the money put for many years down the road. I think that the company has executed brilliantly. To perfection, really. And therein lies the problem as I see it. Perfection is priced into the stock. And technology, of all sectors, is so fast moving that any break in momentum will hurt them. I also think that their marketing has been as important as their technology – they have gone hand in hand. It has been genius. But at this point, others are starting to copy, and will continue to copy. While I am certain there is no shortage of brilliant contributors at Apple, I think Jobs was the point man. He was the visionary. I think his presence will be missed immensely. Not at first – momentum should carry the company just fine for a couple years – but as the culture changes as his presence fades, I think they come back to the pack. And I don’t think the stock is priced to come back to the pack. That said, I know that’s a highly contrarian view and it’s not something I’m interested in betting (heavily) on… just something I think.

      As for Buffett and BAC, he has a good track record of finding value amidst rubble. That said, I also think he became an investing legend in a country with, and during a period of, outstanding stock performance. What if the U.S. has crested and demographics and energy depletion and mounting debt are all about to catch up with us? Then the paradigm has changed and BAC doesn’t look so good. So I’m kind of skeptical because I think the paradigm is changing. Or, at the very least, is at significant risk of changing.

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