Money has always been a big factor in American politics. You can’t outright pay politicians in return for their vote on an issue of interest to you. That’s bribery and it’s a crime. 18 U.S. Code § 201. But you can come very close. That’s because it costs a tremendous amount of money to run for public office and we leave it to the politicians to raise their own funds.
State-wide races for governor, state legislator, or U.S. House or Senate seats can cost hundreds of thousands or millions of dollars. A major state-wide campaign requires a hefty advertising budget and paid staff to handle things like communications, strategic planning, finances, and legal compliance.
I thought it was a very strange story. “Analysts confounded by GameStop price moves” read the headline in the business section of one of the world’s most widely read newspapers. “Recent volatility in the stock of GameStop has confused analysts following the video game retailor” read the lede line.
That there had been great volatility in the price of a share of GameStop was not debatable. The stock was trading below $20 a share at the end of 2020. On January 29, 2021 it hit $325. That’s a jump of 1,625%. If you had bought 100 shares on December 31, you would have paid $2,000. On January 29, one month later, your 100 shares would have been worth $32,500. If you think you understand the stock market that is a mindboggling increase. Certainly one to “confound” and “confuse.” But as your intrepid reporter wrote in my primer for the National Center for Business Journalism, stock markets are not what they used to be.
Back from Space
SpaceX’s Dragon Demo-2 flight has ended with the successful return to earth of NASA astronauts Bob Behnken and Doug Hurley after spending more than two months on the International Space Station. As I wrote at the time of their launch, this flight marks the return to America of the ability to send humans into space.
After the retirement of the Space Shuttle in 2000, Americans who wanted to go the the ISS had to buy a seat on a Russian rocket. NASA began, during the Obama-Biden administration, what is called the “Commercial Crew” program effectively outsourcing this task to private industry. SpaceX is the first to successfully demonstrate this capability. This flight was named “Demo-2.” The first regularly contracted flight of the Crew Dragon is set to take four astronauts, three Americans and one Japanese, to the space station later this year.
As they left the capsule Behnken and Hurley thanks the SpaceX team. The SpaceX communicator said, “Thanks for riding SpaceX.” For America’s space program, a new day has begun.
It was a win for Apple. A loss for the European Union. And a case study for the rest of us.
The news story itself is simple. In 2016, the European Commission ordered Apple to pay Ireland 13 billion euros ($14.9 billion) for ten years of back taxes. The Commission claimed Apple benefited from illegal state aid via two Irish tax rulings that artificially reduced its tax burden for over two decades, to as low as 0.005% in 2014.
As you can tell by all the marketing hype, 5G is upon us. The mobile telephone carriers are touting their plans to roll out 5G, the Fifth Generation of wireless service, although specifics about the timetable, fees and applications are difficult to come by.
Wi-Fi 6 is somewhat more obscure. That’s because the branding has never really caught on with the equipment makers who instead opted to describe their gear with the string of numbers and letters referencing the IEEE standard which defines the technology. Wi-Fi 6 is 802.11ax. And that is a mouthful for consumers to remember.
This story continues on The Network by Cisco….
In my recent post on mutual funds, I noted that John Bogle disrupted that industry with Vanguard, a mutual fund company that specialized in low cost index funds designed to mimic rather than outperform major market indexes. The other mutual fund companies responded with their own index funds, and there is intense competition between them
Mutual fund shares vs. ETFs
Exchange Traded Funds, ETFs, are another refinement of the fund category. They will certainly figure into your reporting on the fund asset class because they are by some measures the most popular of all exchange traded securities.
For my primer on ETFs, see businessjournalism.org.
In a previous post about indexes, I identified the Dow Jones Industrial Average and the Standard and Poor’s 500 as the two most frequently referenced. They originated as short-cuts that summarized market trends, and are often used as a benchmark against which investment performance can be judged.
There has been an explosion in the number of indexes in recent years. There are hundreds if not thousands available, enough to slice and dice the markets in as many ways as can be imaged. Some are broad-based, like the NASDAQ Composite with more than 3,000 stocks. Others might track a region, like the EURO STOXX 50, based on 50 large companies in the Eurozone. Some follow companies of a certain size, like the Wilshire US Small Cap. And still others focus on an industry, such as the NYSE Arca (originally AMEX) Semiconductor Index.
Continues at businessjournalism.org….