Long-term I think this is all moving in one direction. A localised world where local businesses cater to local demand. Why do I say that? Because everyone is getting better at producing things each year. Efficiency gains are out striping demand growth.
The market looks at Netflix and sees a rising share price, rising subscriber numbers and a recent US subscription price hike. All these factors scream buy right now...
The streaming business could become extremely competitive. Netflix and others are benefiting while the industry continues to grow. But what happens when that industry matures? What happened when the world is saturated with on-demand video streaming?
In 2017, Aussies ordered $1.5 billion worth of food from apps. And it’s likely to get much bigger from here on. You can probably guess what this means for businesses like Deliveroo and Uber Eats? Their market is about to get a whole lot bigger.
Oh yeah, the modern monetary theorists also don’t believe deficits are all that bad either. Give me a break…
I’m not a technology nihilist. I don’t believe technology will rise up against us and thwart the human race. But tech of all shapes and sizes is pushing a lot of us out of jobs.
So far Trump is getting his wish. US stocks are up almost 3% as we kick off 2019. And they’ll probably continue rising. But it won’t matter. This is not the big event that will change things for investors.
The analysts could be right. Netflix might be the best buy out of the FAANGs. But the best buy for who? Certainly not investors.
There is one thing dragging China’s economy down: Manufacturing. The industrial and manufacturing sectors account for 40% of China’s economy output. But if they want to be a super power, they’ve got to wean themselves off it, fast!
Imagine losing US$2 billion overnight? A couple of hedge funds are still coming to grips with this reality. And it’s all because of old reliable Apple Inc.