The Morning Call--The new investing paradigm

The Market
Technical

The indices (DJIA 13127, S&P 1418) had another lazy, hazy day of summer, finishing down fractionally, but (1) still within striking distance of the upper boundaries of their short term trading ranges [12022-13302, 1266-1422] and (2) well within the boundaries of their intermediate term uptrends [12202-17202, 1283-1863].

Volume remains anemic; breadth weakened. The VIX rose but remained within its short term downtrend (a positive for stocks).

GLD rose, closing above the lower boundary of its intermediate term trading range and once again approaching the level of the last of the lower highs.

Stocks and Economic News 120 -- IBM’s Watson Gets Wall Street Job After ‘Jeopardy’ Win

IBM’s Watson Gets Wall Street Job After ‘Jeopardy’ Win

International Business Machines Corp. (IBM)’s Watson computer, which beat champions of the quiz show “Jeopardy!” a year ago, will soon be advising Wall Street on risks, portfolios and clients.
Citigroup Inc. (C), the third-largest U.S. lender, is Watson’s first financial services client, IBM said yesterday. It will help analyze customer needs and process financial, economic and client data to advance and personalize digital banking.

IBM expects to generate billions in new revenue by 2015 by putting Watson to work. The technology giant has already sold Watson to health-care clients, helping WellPoint Inc. (WLP) and Seton Health Family analyze data to improve care. IBM executives say Watson’s skills -- understanding and processing natural language, consulting vast volumes of unstructured information, and accurately answering questions with humanlike cognition -- are also well suited for the finance industry.
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iPad dispute signals new era in trademark troubles
iPotato, isock, icouch, istove, i-you-name-it. An Internet search for "i'' words from A to Z will turn up just about any combination you might think up, from all over the world, only a handful of them related to Apple Inc.
Given its penchant for "iproducts," Apple's current troubles in China over the iPad trademark are not its first, and are unlikely to be its last. China's importance as a major consumer market is bringing fresh headaches for companies, and even celebrities, seeking to protect and claim brand names. That's apart from the usual problems with piracy and other infringements.
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All American Investor

@AllAmerInvest AAPL, iPhone4S, Roubini, Bonus Bucks, Shh

What's Inside The iPhone 4S?

Apple Could Sell 4 Million Phones This Weekend
http://read.bi/nluaup

Roubini: The Instability of Inequality
http://bit.ly/n82csq

All American Investor

CNBC Bonus Bucks Answers for Friday, October 14, 2011
http://bit.ly/ovdgjj

@AllAmerInvest Steve Jobs Edition

Inflation is not the answer

It's a sign of desperation that the latest cure being suggested for the ailing economy is higher inflation. In the 1970s and early 1980s, inflation (peaking at 13 percent in 1979 and 1980) was a national curse. Now, it's being advanced as an antidote to high unemployment and meager economic growth. It's bad advice for the Federal Reserve, which holds its annual research retreat at Jackson Hole, Wyo., this week. What seems plausible in the classroom would probably backfire in the real world.

The economy's central problem today is lack of confidence - fear - reflecting enormous uncertainty. Business managers and consumers don't know what to expect. Facing stubborn joblessness, falling home values and volatile stock prices, they have become reflexively defensive. They hoard and hold back. A deliberate policy of higher inflation risks compounding the uncertainty and poisoning psychology even more.

Inflation is not the answer
http://wapo.st/q2JQE4

By Bob DeMarco
All American Investor


Steve Jobs

Apple After Jobs Still a ‘Buy,’ Analysts Say
http://on.wsj.com/nQJpj0

The 13 Most Memorable Quotes From Steve Jobs
http://read.bi/nN4cSL

Morning MarketBeat Daily Factoid:

• Apple’s share price at the time of its IPO in December 1980 was $2.75, adjusted for splits.

• Apple’s share price on May 31, 1985, when Steve Jobs was stripped of his power before being shown the door, was $1.98. 

• Apple’s share price on Dec. 20, 1996, when Mr. Jobs returned to the company as a consultant, was $5.88. 

• Apple’s share price on August 24, 2011, when Mr. Jobs resigned as CEO, was $376.18.

APPLE (AAPL) or NVIDIA (NVDA) which was the Better Buy? (Chart)

Chart, APPLE (AAPL) versus NVIDIA (NVDA), Ten Year Chart, Comparison, Monthly Percent Change.

From 2000 to late 2003, Apple traded sideways in a tight range. You had plenty of time to understand the implications of the MAC and the IPod. Kids were begging for the IPod long before the stock took off to the upside.

For most of the decade, NVDA would have been the better buy.

Apple was clearly the better buy over the entire ten year period. However, compared to the market return of most stocks over this same time frame, both Apple and Nvidia were good buys. Of late NVDA is taking off to the upside.

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A Tale of Two Stocks Intel and Apple

From time to time I like to go back and take a historical look at stocks. I am thinking about buying some Intel. I also decided to look at Apple.

If you look at the Intel chart below you will notice it was trading in the $15 a share area back in 2002 (after a high around $75).

At the same time in 2002, Apple was trading around $8 a share.

So where are they now? Intel is trading around $13 a share, and Apple is trading around $90 a a share.

I guess this shows that if you buy good stocks you'll make money in the markets (unless you bought Apple at $200).

Which is the better buy right now Intel or Apple?

clipped from charts.barchart.com clipped from charts.barchart.com