December 16, 2013

RESTAURANT BUSINESS NO FREE LUNCH FOR APPLE $AAPL $OPEN $ORCL $SAP $IBM

On December 12, the Patently Apple AAPL website was first to report that Apple had filed for a restaurant-related patent. The stock market smelled what was cooking. The stock of Open Table, which specializes in restaurant reservations, fell from a high of $80.20 to a low of $74.65 before staging a mild recovery. In social media, Apple bulls cheered the development. Apple needs a new revenue stream and restaurants are a big opportunity.

A decade ago, when the first indications that Apple might be going after the music business appeared they were not taken seriously by investors. It was dismissed as speculation.

… Please click here or the title below to read more.

December 16, 2013

REBALANCE WITH CASH — NOT BONDS — BEFORE YEAR END $TLT

Rebalancing between bonds and cash at year-end is quite common. Traditionally some practitioners have suggested a higher proportion of bonds as an investor ages. A split of 60% for stocks and 40% for bonds is quite popular.

In a year like 2013 when stocks have been up strongly, to maintain the desired split between stocks and bonds, stocks will have to be sold and bonds added at the end of the year.

This year, I recommend against this traditional rebalancing in favor of bonds. The reason is that bonds are likely at the end of a long bull market. Going forward interest rates are likely to rise.… Please click here or the title below to read more.

December 16, 2013

GERMAN REGULARS PROBE GOLD AND SILVER PRICE MANIPULATION, IGNORE CONSPIRACIES AND FOCUS ON THREE POINTS $GLD $SLV #GOLD #SILVER

There is no shortage of conspiracy theories related to gold and silver. However, I have never found much credible substance in such theories. For the first time in recent years, there is a report that is worth monitoring.

German regulators are investigating Deutsche Bank regarding gold and silver price manipulation. This is important because Deutsche Bank is one of only three banks involved in London silver fixing, and one of the five banks involved in London gold fixing. HSBC and Bank of Nova Scotia are the other two banks that fix silver prices. In addition to the foregoing names, Barclays and Societe Generale take part in gold fixing.… Please click here or the title below to read more.

December 16, 2013