Thursday, January 30, 2014

Back to normal

So the Q4 GDP number came in pretty much as expected but the bigger news overnight was the concerted effort by a number of central banks - India, Russia, others - that seems to have stabilized the global currency markets.

In particular the $ is rallying against the yen again and that is the primary driver of the US stock market right now.  It also doesn't hurt that there was a collapse in pending home sales in December (blamed on weather, but recall it was 70 degrees on the East Coast the weekend before Christmas).  This collapse feeds the theory that the Fed might again save the day despite their reduction in bond purchases announced yesterday.

Finally, Facebook's share price exploded today on more mobile ad sales.  When people talk about Facebook it makes me feel like they are discussing American Idol in 2004.  I have no idea who was watching that show in 2004 and I have a limited understanding of who is using Facebook.  It's not kids, it's not young adults in middle income/upper income America and it's not my age group.  I contend that while their user base is large and because it is viewed a tech company advertisers assume that the demo is desirable.  However, but I suspect that the demo is much older and poorer than advertisers realize.  No matter --- stocks soaring today!

One more reason to dislike snakes - Flying UFO shaped snakes....

Actually we've known about these snakes for years, but giving it a clever name means that it will be great link bait (link bait are those mindless articles that cause you to click when your are on Drudge Report, Buzzfeed, Business Insider or a local website with a Z).



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