Disney’s transformation to a streaming ‘Netflix’ business model is an unprecedented step for the company. Any business transformation is hard, and in Disney’s case its streaming competitors are well advanced or determined and well capitalised. Netflix launched streaming in 2007, and Amazon and Apple are among the competition. But Disney... Show More
Last month we saw the FED raising rates for the 9th time in the last 3 years, now to 2.25-2.5% per annum. Also, this month, the FED might keep its Quantitative Tightening (QT) program to US$50 billion per month, in order to reduce its inflated balance sheet. Show More
Apple made history on 2 August 2018, becoming the first company ever to reach one trillion US dollars in market value. Five weeks later Amazon followed, crossing the trillion dollar threshold intra-day momentarily. Show More
As volatility has picked up in recent months, many investors who thought they were protected in a down-market have quickly discovered otherwise. Asset consultants have discussed the value of finding genuinely uncorrelated returns, while also acknowledging the difficulty of finding them. One Livewire contributor who’s managed to put in solid performance... Show More
For decades, traditional wisdom held that value investing is the only way to outperform, and with good reason. Until the GFC, value had outperformed growth in all but a few brief periods, and those periods immediately preceded a major bear market. But for nearly a decade now, growth has produced... Show More
The FAANG stocks (Facebook, Amazon, Apple, Netflix and Google/Alphabet) led the market up and participated in the recent correction. Their latest profit reports are an important guide to the sustainability of the tech sector's rise. Here we argue that on a Price Earnings Growth basis, they still look sharp. Show More
Low interest rates, growing earnings confidence, deconstruction of the nanny state, tax cuts, broad based gains in 7 out of 11 industry sectors and low inflation are all contributing, but the commentary has missed the most important contributor to another new high for the Dow. Show More
Risks often come from unexpected places. For global technology companies, the obvious risks might come from obsolescence and changing consumer preferences. We think it’s taxation that presents the biggest risk for the ‘FANGs’ stocks today. Since 2008, if you look at the cumulative taxes that this $250B behemoth has paid to... Show More
It has been about 10 years since the Global Financial Crisis (GFC) began to unfold. Very few were prepared for the financial damage that ensued. And it has permanently impacted the psyche of many market pundits. Since then, there has been no shortage of bear market predictions and lately there... Show More
Cable media stocks fell sharply after AT&T announced video subscriber losses, following Comcast and leading to $60 billion being wiped off their valuations. Investors love Netflix but competition is coming. Amazon may move into the $560bn prescription drug market. And more exciting technology developments in transport. Show More
