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Comments of the Day
30 October 2019
Video commentary for October 29th 2019
Eoin Treacy's view
A link to today's video commentary is posted in the Subscriber's Area.
Some of the topics discussed include: UK election announced, Pound stable, FTSE-250 firm, Wall Street steady, bonds susceptible to additional weakness, gold and oil quiet ahead of Fed.
If History Were A Perfect Guide, Stocks Would Be in A World of Trouble Here
Thanks to a subscriber for this report from UBS which may be of interest. Here is a section:
Eoin Treacy's view
A link to the full report is posted in the Subscriber's Area.
We are at particularly interesting period in history. First off, no one knows how much of a distortion to historical norms negative rates and negative yielding bonds represent. Second is the fear being expressed by investors as stock markets hit new all-time highs, and not just on Wall Street. Third is censorship by both Google and Facebook precludes anyone who wishes to express a sharply bearish view from acquiring advertising space.
Branson's Virgin Galactic Space Venture Jumps in NYSE Debut -
This article by Christopher Jasper for Bloomberg may be of interest to subscribers. Here is a section:
Virgin Galactic is one of a trio of billionaire-backed space startups, each tapping different technologies. Branson is using an aircraft to carry a spaceship to high altitudes, where it blasts away. Blue Origin, controlled by Amazon.com Inc. founder Bezos, relies on more-conventional rockets. Musk’s Space Exploration Technologies Corp. deploys reusable launchers.
While transporting satellites has been a focus for SpaceX, Branson is chasing the tourism market, planning a first commercial flight next year. Blue Origin plans to take payloads and tourists to the edge of space on an 11-minute flight, while Musk has pledged to send passengers to the moon, Mars and beyond.
Branson said last week that Virgin Galactic also is interested in developing hypersonic airline flights after Boeing Co.’s future-technologies arm pledged $20 million for a minority stake. That could mean linking U.S. cities in a matter of minutes and, ultimately, the U.S. and U.K. with Australia in just a few hours.
Eoin Treacy's view
Launch costs are trending lower and that is allowing room for a range of competing business cases to exploit the opportunity represented by the final frontier. If Elon Musk is to believe the jump to space is but a gateway to a myriad of possibilities on the moon and Mars. The only we can be sure of is the confluence of technological innovation and access to abundant cheap credit has made possible ventures that were mere fantasy a decade ago.
Email of the day on Japanese growth stocks
Several weeks ago, I had the same feeling as you on Japan. For investment purposes I decided to concentrate on Japanese 5G related companies. Ignoring the major telecom co's, I then came up with the following list of companies involved in parts related to the 5G area:
Eoin Treacy's view
Thank you for this insightful email. One of the factors I believe that is attracting investors to Japan is the fact it is has a such a deep pool of companies that provide invaluable components for the growth of the wider global technology sector. The fact they have been underappreciated for so long is justification for investor interest, particularly if global growth is primed for recovery.