The Stock Market and Investing

ljflx

You have always been able to capitalize internal (personnel costs mainly) or external development costs so there is no accounting rule change there. But you have to justify the ROI on it (either expenses saved or revenue/profit generation) to auditors. This is very common in software or hardware companies. Most people think of fixed assets in terms of see it and feel it items. But we are now a service country so a lot of fixed assets are software development or hardware design teams. I would think that Apple is building a major software platform or one that fits a new hardware design. Explaining $8bln of capital expenditures in the trailing twelve months, including $3.46bln in the last quarter is not easy. But whatever it is, it's huge and probably intended to be disruptive to an existing way of doing things IMO. They've had an immensely disruptive technology strategy now for a long time. They've changed how you buy and listen to music, how you use a cell phone and how you buy and use portable hardware (and consume news, entertainment etc etc from it). So certainly IMO their next major push would be TV or a much larger marriage of TV and on-line usage.

ljflx

Then he's really stupid because the Reps will be holding the gun on him with the next big thing - raising the debt ceiling - early in the new year. Any smart negotiator would look at that as the bigger thing and be looking to marry it in to a negotiated settlement on the fiscal cliff. Of course Reid is probably hoping the reps fall on both items under a siege from the MSM.

gagrice

anthonyp

Merry Christmas everyone......Tony :-)

gagrice

Merry Christmas to all and to all a good night!

fintail

I'll second that. I generally prefer "Christmas" to "Holidays" too, even though I am not a churchgoer.

Oh, to whoever was thinking of a new style S-class (I forget), I visited a local dealer today - salesman said he had no idea. But, he could have been saying that to get me to buy a W221 :shades:

ljflx

Anyone still hopeful or optimistic about us not going over the cliff? We seem to have gone from a possible important solution, to the Obama $250K solution that reps would be nuts to agree to (they'd give up all negotiating chips for nothing) to one that looks like no solution. The tea party was nuts to pass up the Boehner $1mln plan as that took all pressure off of Obama and the idiot Harry Reid. Meanwhile Reid is as inflexible as ever and doesn't give a damm about the people and Obama views this whole thing as usual - a media event to gain more public support rather than get a constructive deal done - which is what he loves to do. He thinks being president is always being on the campaign trail. The joke is we were in this position 6 weeks ago and it seems like nothing constructive ever even got discussed. Plus we have a debt ceiling solution issue in two months. Both should have been tackled and solved in that 6 week period. In the business world every one of these cronies on both sides would have gotten fired.

houdini1

I just hope that anyone with as much as $1.00 invested in this great country will remember how these elected officials performed their duties when the next election rolls around. Get out the broom.

carnaught

I just hope that anyone with as much as $1.00 invested in this great country will remember how these elected officials performed their duties when the next election rolls around. Get out the broom.

The "broom" didn't sweep this past election, so I am wary of it doing so next time around.

fintail

I was optimistic, and I still mostly am. A few days of egoistic posturing and fake "debate" by arrogant politicos who mostly have never worked in their lives - high drama. But the pressure is on. I can still imagine a last minute resolution.

What you say is the exact truth, in the real world these people would be fired. None are offering any true compromise, not even trying. IMO, the system (two parties, endless lobbyists, etc) as it is now is steadily failing and not sustainable.

ljflx

Well someone should tell Obama his job is to lead and get something done, not hit the road and make speeches, or go on vacation at such a critical time.

anthonyp

And further someone should tell The Republicans to speak with the Democrats and be POLITICIANS ....what a bunch of ------ Tony

cyclone4

Sorry that I have not been around here for quite a while. Our Christmas week has been turned upside down. My wife's mother left this world this past Sunday. Thus we drove from Akron to St. Louis (550 miles)on Christmas Day to avoid the snow storm across OH & IN on Wednesday. I figured that the road conditions were not going to be good on Thursday. Flights from CLE to STL were next to impossible to get. Plus it would have taken about 7 hours since there were no non stop options. So I decided to drive.

The visitation was last night and the funeral was today. It's been a long week. We are driving back to Akron tomorrow so that we will be there for our oldest granddaughter's 5th Birthday party on Sunday.

As far as the fiscal cliff is concerned, I have reached a point where I don't give a damn. They are playing games and I still believe that something will get done sooner than later. After it is all said and done the stock market will be fine.

fintail

They also need to tell Boehner and the tea party dorks about some compromise as well. All three groups have been fairly worthless through this attention-seeking exercise in ego and irresponsibility. Pro really is the opposite of con.

I still predict a last minute save. I might be wrong, doesn't really matter either way. Markets aren't going to crash, world isn't going to end. Maybe some spending and tax rates need to return to pre-Dubya levels, his economic experiment failed.

gagrice

The Bush tax cuts were supposed to end after 2009. It was the Dems that pushed them down the road 3 more years and added cuts to employment taxes as well. The GOP want to see spending cuts to go along with higher taxes. Dems want to spend the tax increases without any deficit reduction. They also want to keep adding more welfare in the form of extended Unemployment. I say let the tax cuts expire and get the across the board spending cuts that go with the increases. Time to STOP kicking the can down the road. If I get cuts in my SS and MC so be it. I will eat more top ramen. yuck.

cdnpinhead

. . .and get the across the board spending cuts that go with the increases.

Something about pigs flying comes to mind, but it'd be nice if it could happen.

gagrice

That is the problem with City, County, State and Federal government. They all want tax increases without any cuts. Every program is too important to make cuts in. I like the idea of across the board cuts. Then everyone shares in the pain.

anthonyp

Geez sorry about the deaths, but happy you will experience the joy of a tot turning five on Sunday....Alot of driving for you, and I bet you will again consider the airplane , until you fly again....That is something that has turned into a miserable experience, but you have to do it for the longer trips....Yours was right on the border

I guess when you read this the deal will be done....Bunch of hacks....Tony

fintail

Here's how I see it: Dems = tax and spend. GOP = spend and spend. You can't win with either. When the GOP recommends meaningful cutbacks to the military-industrial monster, then I will believe they want real cuts. When anyone dares to question the sums we spend on foreign aid black holes, then maybe so. When corporate welfare and pity the rich propaganda tax policy is curtailed, then I will believe all these cuts.

At least you get SS and MC. Only way it will be around for my generation is if a few tens of millions of payers are mysteriously added to the rolls. Oh wait, that might define some immigration policy.

houdini1

Wouldn't it be refreshing just once to see big spending decreases immediately...with the "promise" of raising taxes later? Why does that never happen?

gagrice

President Francois Hollande’s 75 percent millionaire-tax is unconstitutional because it fails to guarantee taxpayer equality, France’s top court ruled today.

Why should someone that makes a few more dollars than me pay a higher percentage. Why should someone that makes a few dollars less than me pay a lower percentage. Must be something in the Constitution that keeps it fair. Time for a FLAT TAX.

http://www.bloomberg.com/news/2012-12-29/french-court-says-75-tax-rate-on-wealth- y-is-unconstitutional.html

fintail

Read the article. That's not the "taxpayer equality" that is the problem. This is:

"two households with the same total revenue could end up paying different rates depending on how earnings are divided among members of those households"

I like the "few dollars" red herring, too. If the system was "fair", the past few decades of socio-economic decay wouldn't exist. You have the Buffets and Romneys paying lower rates than people who actually work. And you still have the sons of the masses dying in wars so the military-industrial investments of the top few can remain healthy.

The French had a flawed plan. The idea of "equality" is funny though, there and here both. Some people are more equal than others, and that isn't changing.

gagrice

We have that same inequality of two households making the same paying different amounts of tax. Or how extravagantly one may live. Those that live to the extent of their means get taxed less than those that live well below their means. Then you have millions that lived way above their means and now have little or nothing and expect those of US that lived below our means to support them in old age. Nothing about life is fair. I have examples of people that never saved a penny when they could and now they are living better off the state than folks that saved. They have to hide what little they have or it will be taken from them in short order. Such as owning a home if your health dictates your need for assisted living. And I don't want to hear any crap about Germany where they are shipping their old people off to live in some other country where assisted living is cheaper.

http://173.201.187.68/international/exporting-old-people-germany-sending-its-eld- erly-to-foreign-homes

fintail

I'd never argue the tax system doesn't need huge reforms - both at the bottom and at the top.

Old people leaving for cheap living - nothing new. Here the lucky old can stay put, move to Mexico or Costa Rica, and many of those who stay home will live in relative poverty. Many in the US still are shipped off to publicly subsidized old folks home with a quality of life you wouldn't envy. I wonder where the average elderly person really has it better. I wouldn't believe any crap about it being the US, either.

gagrice

I happen to know a lady that was unable to get by on her SS. her kids were subsidizing her. She is going into an assisted living facility that is very nice. It is all covered by medicaid. She will have SS money left over every month that she did not have renting an apt and living on her own. She did not have to leave the country. She is in the town with her children. I would like to see honest statistics on our welfare system compared to the rest of the World. I would bet we are near the top.

anthonyp

That is a nice story, and makes me feel as though the taxes I pay are being utilized in a meaningful way.... Personally I am glad I did without alot of things when I was younger, and saved for the future...I have choices, and good choices at that...Those that did not may enjoy a reasonable retirement, but very limited choices, and the worry of what could happen.....Frankly many people were really not able to put aside enough funds, as they didn`t earn enough----through no fault of their own---They put children through college, or other things, so for me the `social funds` that enable less well off people to have a life is what the U S A is all about.....Tony

fintail

Many of my generation will probably have to do similar for our parents, if the mass retirements of boomers creates havoc in the system. My sister and I have discussed what we might have to help my mother with, should her finances not pan out. She's in her mid 60s now and still working about 30 hours a week - for the health plan more than anything. And, she doesn't want to stop working, it gives her something to do, and she sees her friends. But in another decade, it might not be workable.

When it comes to waste and abuse, we probably are at the top when it comes to welfare expenses. I wonder how often this kind of crap slips through elsewhere

gagrice

When it comes to waste and abuse, we probably are at the top when it comes to welfare expenses.

I am sure we top the list on welfare fraud, both at the top and bottom of the food chain. Florida alone $billions in Medicare fraud.

http://www.miamiherald.com/2012/10/04/3034167/feds-charge-more-than-30-suspects.- html

Medicare Fraud: A $60 Billion Crime

imidazol97

Medicaid fraud is probably up there with Medicare fraud, at least in Ohio.

As for the current spending negotiations going on, I'm really tired of the media representing this as all about getting taxes for the top 2% to pay more than under the Bush rates currently existing. This should be about the spending cuts from 0% or baseline spending. Instead the discussions are about decreasing the rate in increase in spending. Duh. But the lopsided media makes it all about one person as the savior who flies in to try to settle, after a year and a half of the knowledge that the changes were coming.

The top 2% still won't pay much more in taxes than is spent in continuing unemployment for workers that is desired by the WH. The point is to reduce spending, not take in more and dish it out somewhere as fast, errrr faster than it comes in.

What is really needed is plugging the loopholes that those with high incomes use to avoid the taxes or to reduce the rate for the taxes. We need high income folks to pay more, but not be gouged.

AND we need to talk about cutting welfare, medicaide, WIC, and all those free monies going to some folks who never intend to work but can. They need to take a hit on all of this along with the rest of us who are funding the 47%.

The Tuesday morning media shows will have all the million dollar talking heads on ABC,NBC,CBS making huge talk about only certain parts of the negotiations, acting as though they have a great understanding of what's needed to avoid becoming Greece. But in reality, they are just pushing the party line to the low information voters.

We need leadership. Both parties.

Editorial cartoon from Townhall

gagrice

I thought these two told the story very well...

ljflx

Here come all the positive Apple spins now that the year is over and the stock bottomed out. First one out the door is that China has an unsatiatiable demand for iPad's and iPad minis. Time to start the revenue revisions.

We're down to a little over 10 hours to halt the brakes on going over the cliff.

fintail

Good one - neither side has a moral high ground when it comes to spending. The leader is trying to take some kind of superior stance, but even as someone who chose him, I don't buy it.

Think of the potential to be had if this waste and fraud could be eliminated. There wouldn't be a better place to invest on the planet (and looking at most of the planet right now, this place is still one of the best bets either way)

ljflx

I'm trying to teach my son that you don't wait till the last second to get things done but he turns around and says that our government doesn't see things that way. So great example our government sets for its youth.

ljflx

Happy New Year to everyone. See you guys on the other side of the cliff. No deal is getting done tonight. Now we are looking at January, retroactive back to jan 1. In Government you set your own rules.

I'm home for New Years. Took out food from the Outback. The place was absolutely mobbed. Everyone in the house has either a head cold or an upper respitory virus. This hasn't happened to us in about 5 years.

cyclone4

I echo Lens wishes. HAPPY NEW YEAR to everyone. And I just read that the Senate just signed off on a deal. I know that some of you are going to be disappointed that it was not the grand deal but I am hopeful that will come early in 2013. I continue to be optimistic about the future. Apple will soar to new highs in the next few months. Nothing at all has changed with its fundamentals.

In any case, we have an awful lot to be thankful for living in this country.

gagrice

In any case, we have an awful lot to be thankful for living in this country.

I agree 100%, HAPPY NEW YEAR to all of you, Gary

ljflx

Apple will soar to new highs in the next few months. Nothing at all has changed with its fundamentals.

Actually the fundamentals have improved. China is stronger than expected and over the Thanksgiving holiday more than 80% of all tablets sold were iPads and still 90% of apps being downloaded are iPad apps. That means that other tablets are hardly being used and that developers are much more interested in developing apps for the iPad. The maps thing seems to be just an embarassment and has had no effect on fundamentals. The negative stories seemed to have been released to drive the stock down. If the stock releases big earnings and the price runs back to over $700 the SEC should do a major investigation here.

gagrice

SEC should do a major investigation here.

Has the SEC, since inception, ever done anything that was not just a political hack job for the administration? I see the whole bunch as a waste of oxygen.

Being almost completely cashed out of the market, I don't have any strong desire to get back in. I think it has become so manipulated by big hedge funds and fat cat investors that it is worse than Las Vegas. I know a fortune can and has been made by many in the stock market. Over the last 50 years I have done a lot better with real estate.

houdini1

I agree on the real estate, but you can't just put all of your cash there. The problem is where to park your cash while it is not being used. Any ideas? Everyone seems to be trashing muni bonds right now.

Our current crop of politicians are rotten to the core. By holding off the vote until after midnight, they can technically deny voting for a tax increase, and instead say they voted for a tax decrease for the middle class. This goes for Dems and Reps alike. You can bet the whole thing was planned. At this point I would rather waste a vote on the Libertarian party or some other upstart party before voting for a Dem or Rep.

Happy New Year everyone, and I wish you all good investing.

imidazol97

>By holding off the vote until after midnight, they can technically deny voting for a tax increase, and instead say they voted for a tax decrease for the middle class

Very perceptive. And you are most likely RIGHT. Just as the WH guy after 1 1/2 years still hadn't moved on the adjustments and sequestration, so that he could return from golf in Hawaii to save the day by getting a "deal." The deal is no cuts, slight decrease in the increases in spending and higher taxes on the wealthy (with which I agree).

Missing: removing tax loopholes for wealthy
adjusting capital gains rates for wealthy versus middle class
not increasing government size by employing more folks in government
stimulating private sector employment

...others?

houdini1

Yes, a couple that would help....term limits, and dump the current tax system and replace it with a national sales tax.

It would probably take a full fledged revolution to get that done though.

robr2

term limits

I firmly believe in this. 2 terms for senator, 4 terms for representatives. I'd like to see the Presidency be changed to one 6 year term. 4 years is too short - 1st year is spent learning, 2nd and 3rd years are spent doing the job, 4th year spent campaigning.

dump the current tax system and replace it with a national sales tax.

Never happen. Too many special interests would derail this:

attorneys and tax professionals
the poor who spend proportionally more than the rich
anyone in the real estate/mortgage industry as the benefits to borrowing go away
retirees that already have paid income taxes
charities as the rely on tax deductible contributions
et al.

houdini1

Never happen. Too many special interests would derail this:

attorneys and tax professionals
the poor who spend proportionally more than the rich
anyone in the real estate/mortgage industry as the benefits to borrowing go away
retirees that already have paid income taxes
charities as the rely on tax deductible contributions
et al.

Of course there would be some problems, but the pros would far outweigh the cons. Anything would be an improvement on our current mess.

Rebates at end of year, based on spending, for poor and retirees.
Some type of allowance for charitable donations.
Others would just have to cope or possibly some sort of allowance

The real problem would be all the currently entrenched politicians would lose their current power to help one group at the expense of another.

Oh well, I can dream !!

cyclone4

Actually the fundamentals have improved. China is stronger than expected and over the Thanksgiving holiday more than 80% of all tablets sold were iPads and still 90% of apps being downloaded are iPad apps. That means that other tablets are hardly being used and that developers are much more interested in developing apps for the iPad.

You are absolutely correct. I should have stated that there has been nothing at all negative but instead there have been positive news recently with the fundamentals.

The maps thing seems to be just an embarassment and has had no effect on fundamentals.

In fact, I am almost certain that major improvements have already been implemented on the Apple Maps. I have been using it constantly in all my travels sine October and it has worked flawlessly. The other day I searched for nearest Lexus dealer her in Akron and it popped up instantly showing me that it was located just north of the airport at 19.2 miles from my daughter's house. I love the turn by turn voice guidance. I'm not sure if the new Google app has the voice guidance. I know the original one used for maps on Apple devices did not. In any case, I have seen no need to download the new Google maps app.

Speaking of finding the local Lexus dealer, this is a good spot to tell you guys of a really scary incident that happened driving back from St. Louis to Akron on Saturday. There was wet snow falling but the Interstate (70) was in good shape. I had the radar cruise engaged on the RX450h. We were about 40 miles west of Columbus when I decided to pass a truck (at about 77 mph) which was in the middle lane of 3 lanes. All of a sudden, the pre collision system failed which is not uncommon with some precipitation falling. No big deal, right? WRONG! Not only did the pcs fail but I instantly got a warning saying "check hybrid system" with the engine symbol lit up on the instrument panel. In the process of passing the truck, all of a sudden I had zero acceleration. The car died on us. I was stuck on the passing lane and we put the emergency flashers on. Traffic was rather heavy and I had no chance of getting over to the right lane. The car speed was down to 20 mph when I decided I had no choice. I pulled over on the left shoulder even though it had deep snow (hoping I wouldn't get stuck in it if the car started again). Meanwhile the traffic was buzzing by us at 75 mph and it was scary. I pushed the start button to turn everything off. I then pushed it again to see if the engine/hybrid system would start. It did. However, the "check hybrid system" warning kept flashing. We managed to get going again after making sure there was nobody behind us. The car acted very normal to me while driving the rest of the way to Akron. However, the "check hybrid system" warning was always flashing...until Sunday when it suddenly disappeared.

I called my dealer in Des Moines yesterday to see if I could get some answers why this dangerous incident took place. Since it was New Years Eve, I could not get a hold of the right technician. I will try again tomorrow. I also called the Lexus help line but got nowhere after being on hold for 15 minutes and I gave up. If any of you guys have any idea why this happened please tell me. I never want to see this happen agin. I have a feeling it had something to do with the PCS system failing, but I'm not sure. By the way, the reason the PCS failed is because the radar sensor in front had an accumulation of ice and it could no longer operate properly. Sorry for this long post about my problem.

robr2

Of course there would be some problems, but the pros would far outweigh the cons. Anything would be an improvement on our current mess.

Rebates at end of year, based on spending, for poor and retirees.
Some type of allowance for charitable donations.
Others would just have to cope or possibly some sort of allowance

And those exceptions start to lead us back into a complicated tax system.

kyfdx

National sales tax would be tremendously regressive...

Without the "loopholes", it would be extremely unfair... (imho..lol)

anthonyp

Charlie , that sounds miserable...Nothing like some fail safe system to decide to disable the car in the middle of an interstate.....I guess Lexus has gotten too big to be as responsive as they use to be....I had twenty plus years with them and they were very at tentative....I never phoned a national umber, but just the service department where I purchased the car...That department did everything...and more....Audi is still helping me out with some of the occasional costs after six or seven years, but nothing if I broke down on the interstate---which I don`t expect---just AAA then...I swear I don`t have any clue of which car to get the next time..Any more thoughts of what you may get ? Tony Happy New Year to all

cyclone4

Tony - I thought I was going to get the 2013 LS SWB and AWD. However, after some serious thinking, I decided to do nothing for now and stick with my 2008 LS LWB. The new LS is definitely nice with some terrific high tech options, but they raised the base price by about $5,000. In order for me to get all the options I want, it will cost me close to $100 K. I cannot spend that much money at this time. I am not what one would call wealthy. If AAPL was still trading at $700+, I would likely go for it. I gave some serious consideration to the GS450h, but it does not have some of the options I want and more importantly it does not come in AWD. So, I am going to wait another year and see what happens.

robr2

Just announced this AM that Zipcar has been purchased by Avis for $12.25/share - a 49% premium.

I started dollar cost averaging in September and now stand to make a 60% return at that price. Luckily it's in an IRA so no tax hit until I retire.

cyclone4

http://blogs.barrons.com/techtraderdaily/2013/01/02/aapl-watches-earnings-belts-- could-replace-iphone-says-piper/?mod=yahoobarrons