vestact posted: " Market Scorecard US stocks jumped higher again yesterday, extending their solid start to October. The S&P 500 is up 5.73% in the last two days, its biggest back-to-back rally in more than two years. Academic studies have shown that if you are " Vestact - Money with a dash of funny
US stocks jumped higher again yesterday, extending their solid start to October. The S&P 500 is up 5.73% in the last two days, its biggest back-to-back rally in more than two years. Academic studies have shown that if you are out of the market on the best up days, you have horrible returns. That's why you have to grit your teeth and stay in, even when it's tough.
In company news, Elon Musk has revived his bid for Twitter at the original offer price of $54.20 a share, to avoid a courtroom fight. Elsewhere, Amazon is said to have frozen hiring in its retail business as sales slow.
At the end of a great day, the JSE All-share was up 3.25%, the S&P 500 gained 3.06%, and the Nasdaq rallied 3.34%. Yeehaw!
Our 10c Worth
One Thing, From Paul
I'm sending pictures this week, instead of words. Here's the next one, which shows the camera on the first iPhone, and the cameras on the latest iPhone 14. To my mind, taking great pictures is one of the top reasons to own the latest smartphone.
That's 2007 vs 2022. Quite some progress, not so? That old phone took pictures with 2 megapixels of resolution. The new iPhone 14 Pro manages 48 megapixels.
Byron's Beats
There are many ways you can look at the market dip. But I really like this perspective from Josh Brown called the investor opportunity index.
It sounds fancy but it is not. The investor opportunity index is just the S&P 500 inverted. When share prices drop their expected future returns go up. History has shown that stocks do recover. This bear market will be over at some point. When stock prices drop your chances of making money improves. It is as simple as that.
What sounds so simple in theory is hard in reality because it goes against our natural instincts. And that is what makes investing so hard. The investor opportunity index is at a 2-year high. Make of that what you will.
Michael's Musings
Kim Kardashian has agreed to pay a $1.26 million fine to settle an SEC investigation into her shady promotion of the crypto asset EthereumMax (EMAX). She's been nailed because she didn't disclose that she was paid $250 000 to make the post. It is worth noting that she included the hashtag "#ad" in her post, so there was some disclosure.
Since Kardashian's post, EMAX is down 95%. Whoever paid her for that post was probably offloading them at the time, and have done really well for themselves. Interestingly, EMAX has doubled in value since the announcement of the SEC settlement on Monday. As the saying goes, all publicity is good publicity.
I'm surprised that Kardashian ever accepted the deal to promote a worthless crypto coin. Kim and her ex-husband Kanye West are both masters at cultivating their brands, so being associated with a pyramid scheme that blew up must be a real downer.
The fine is another reminder that being paid for promoting a dodgy product isn't always worth it. I wonder when influencers will quit associating themselves with alcohol or internal combustion cars?
Bright's Banter
2022 has been a quiet year for IPOs, but Mobileye is following Porsche's footsteps in doing their part to change this. The Israeli manufacturer of processors for the self-driving market has filed to go public on the Nasdaq under the ticker MBLY.
Mobileye was founded in 1999 by Amnon Shashua and Ziv Aviram, today they're best known for their EyeQ system-on-a-chip, which serves as the "brain" for driver-assist and self-driving systems. The company also builds out 3D maps using real-time data from vehicles equipped with its technology.
Intel acquired Mobileye in 2017 for a cool $15.3 billion, and it intends to retain overall control after the company comes to the market. According to Bloomberg, Intel initially expected to price the IPO at $50 billion, but after coming back from fairyland, lowered its expectations to around $30 billion.
The revenues of the AI company have been steadily growing over the past few years, jumping from $879 million in 2019 to $967 million in 2020, and topping out at $1.4 billion in 2021. They have a lot in the pipeline, from establishing robotaxis in Germany to partnering with Geely to selling self-driving cars in China.
Linkfest, Lap It Up
Nando's is one of our most famous exports. Robbie Brozin will be doing an online interview about what he has learnt over the decades - Conversation with the co-founder of Nando's.
Asian markets are gaining some ground this morning as they play catch-up with the rally we've enjoyed in the US and Europe. Hong Kong shares have roared higher, the Hang Seng index is up 5.8% after a one-day break. Japan and South Korea are also up on the day.
US equity futures are softer in early trade, but it's early days yet. The Rand is trading at R17.60 to the US Dollar as the greenback retreats from its highs.
Good luck with your task list for the day. Imagine being Joe Biden having to go to Florida to visit hurricane survivors, or Liz Truss having to address her party conference in Birmingham.
Yeehaw!
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