Monday, 14 September 2020

Is Tesla Worth More Than Everything Else?


Baltic Dry Index. 1267 -02  Brent Crude 39.98
Spot Gold 1948

Coronavirus Cases 14/9/20 World 29,062,498
Deaths 936,526

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

Warren Buffett.

Another Monday, and time to buy more stocks. Time to front run another Fed central bankster “no billionaire left behind” meeting.

In casino-land, everything is just perfect. It’s time to move on from the billions and trillions, and take stocks into the quadrillions.  Is Tesla worth more than all the other stocks put together?

Well maybe, but call me sceptical. What if President Trump doesn't win?

What if the Sars-COV-2 vaccine is too little too late?

What if unemployment starts surging again?

What if city centre skyscrapers become 21st century millstones?

What if the Democrat Socialists bring in wealth taxes next year?

But for today and tomorrow, buy more!

Asia shares rise as investors look ahead to Fed meeting

TOKYO (AP) — Asian shares rose Monday, despite the rollercoast ride that closed Wall Street last week, as traders awaited cues from the U.S. central bank expected later in the week.

Japan’s ruling Liberal Democratic Party was set to pick a new leader, who will by definition become the prime minister because of the party’s control over the more powerful lower house of Parliament. Favored to win is veteran ruling party politician, Yoshihide Suga, who will continue Shinzo Abe’s “Abenomics” policies of easy lending and deregulation. 

“That decision should not be market moving as we fully expect a steady hand to remain on the tiller of Abenomics. Mr. Suga has signalled that no further rises in sales tax are on the horizon, but all else should stay the same,” said Jeffrey Halley, senior market analyst at Oanda.

----Japan’s Nikkei 225 gained 0.7% to 23,570.55. Australia’s S&P/ASX 200 added 0.6% to 5,893.40. South Korea’s Kospi jumped 1.2% to 2,426.42. Hong Kong’s Hang Seng gained nearly 1.0% to 24,744.86, while the Shanghai Composite rose 0.6% to 3,278.89.

SoftBank, which announced Sunday that it was selling Britain’s Arm Holdings to computer graphics chip company Nvidia for $40 billion, jumped 9.4% in morning trading. SoftBank spent $32 billion to acquire Arm in 2016. Nvidia is best known for its graphics processing chips, while Arm is renowned as an innovator in the “Internet of Things.”

Also on players’ radar screen is the Federal Reserve Open Market Committee, which is meeting later in the week.

The Federal Reserve’s massive aid for the economy has helped underpin the markets’ recovery from the coronavirus downturn by slashing short-term interest rates to record lows and buying up bonds to support markets.

The Bank of Japan also is due to hold a policy meeting this week. No major changes are expected in its ultra-lax monetary policies.

Stephen Innes, chief global market strategist at AxiCorp, noted that investors face “many uncertainties,” including the U.S. elections and the global pandemic.

“Unquestionably the virus story is the dominant macro pivot event, especially for equities, and is more likely to be dominated by optimism surrounding a vaccine. Indeed investors will be keeping their eye on the vaccine prize,” he said.
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Biden is favored to win the election

Updated 6 hours ago

We’ve moved past Labor Day and into the home stretch of the 2020 election cycle. Joe Biden still leads in national polls by about 7 or 8 percentage points, and state polls also show a relatively stable race, with most — excluding those in Florida — containing good news for Biden. However, don’t count President Trump out yet. He still has a roughly one-in-four chance of pulling off an upset.
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Next, the wisdom of Sir Isaac Newton. A cautionary tale via the Wall Street Journal. And deficits don’t matter until one day, they do!

Newton’s Law of Stock Momentum

As Sir Isaac learned, market pile-ons follow the same pattern. Investor, beware.

Andy Kessler

Does this sound familiar: Smart guy owns a stock in March at $200, sells it in June at around $600, but then buys it back in July and August for between $900 and $1,000. By September it’s back at $200. Ouch. Tesla this year? Yahoo in 2000? Nope. That was Sir Isaac Newton getting pulled into the great momentum trade of the South Sea Co., which cratered 300 years ago this month. He lost the equivalent of more than $3 million today. Newton, whose second law of motion is about the momentum of a body equaling the force acting on it, didn’t know that works for stocks too.

When bull markets get going, investors come out of the woodwork to pile in. These momentum investors—I call them momos—figure if a stock is going up, it will keep going up. But usually there is some source of hot air inflating stocks: either a structural anomaly that fools investors into thinking ever-rising stock prices are real, or a source of capital that buys, buys, buys—proverbial “dumb money.” Think of it as a giant fireplace bellows, an accordion-like contraption that pumps in fresh oxygen to keep flames growing.

Most simply blame the Federal Reserve—especially today, with its zero-interest-rate policy—for pumping the hot air that gets the momos going. Fair enough, but that’s only part of the story. Long market runs have always allured investors who figure they’re smart to jump in, even if it’s late. 
Everyone forgets the adage, “Don’t mistake brains for a bull market.”
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Federal Spending Tops $6 Trillion for First Time; Deficit Tops $3 Trillion for First Time

By Terence P. Jeffrey | September 11, 2020
(CNSNews.com) - Federal spending has topped $6 trillion for the first time in any fiscal year in the nation’s history and the federal deficit has topped $3 trillion for the first time, according to the Monthly Treasury Statement for August that was released today.

There is still another month left in fiscal 2020, which runs through the end of September.

As of the end of August according to the Treasury, the federal government had spent a record $6,054,175,000,000. At the same time, total federal revenues were $3,046,786,000,000—leaving the federal government with a record deficit of $3,007,390,000.

Prior to this fiscal year, the most the federal government ever spent through August was the $4,209,743,000,000 it spent (in constant August 2020 dollars) in fiscal 2019.

The largest deficit the federal government had ever run through August before this fiscal year was the $1,659,890,630,000 deficit (in constant August 2020 dollars) it ran in fiscal 2009, during the last recession.

The most expensive federal department so far this year has been the Department of Health and Human Services, which spent $1,378,786,000,000 through August.

The second most expensive has been the Social Security Administration, which spent $1,056,912,000,000 through August.

Through August, the Department of Defense had spent $627,497,000,000.

The Treasury also spent $483,892,000,000 through Augsut in gross interest on Treasury debt securities.

In other news, will this year’s Atlantic hurricane season beat all the records?

Gulf Coast residents brace for possible new hurricane

WAVELAND, Miss. (AP) — Storm-weary Gulf Coast residents prepared for a new weather onslaught Monday as Tropical Storm Sally churned northward.

Jeffrey Gagnard of Chalmette, Louisiana, was spending Sunday in Mississippi helping his parents prepare their home for Sally — and making sure they safely evacuated ahead of the storm.

“I mean, after Katrina, anything around here and anything on the water, you’re going to take serious,” he said, as he loaded the back of his SUV with cases of bottled water in a grocery store parking lot in Waveland, Mississippi. “You can’t take anything lightly.”

Gagnard said he planned to head back across the state line to prepare his own home for winds and rain Sally was expected to bring to the New Orleans area.

Forecasters from the National Hurricane Center in Miami said Sally is expected to become a hurricane on Monday and reach shore by early Tuesday, bringing dangerous weather conditions, including risk of flooding, to a region stretching from Morgan City, Louisiana, to Ocean Springs, Mississippi.

“I know for a lot of people this storm seemed to come out of nowhere,” said Louisiana Gov. John Bel Edwards. “We need everybody to pay attention to this storm. Let’s take this one seriously.”

Edwards urged people to prepare for the storm immediately. He also said there are still many from southwestern Louisiana who evacuated from Hurricane Laura into New Orleans — exactly the area that could be hit by Sally, which is a slow-moving storm.
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Finally, how to wreck a large city without using a nuclear bomb. Interesting animation and pictures by the New York Times investigative team. 

How a Massive Bomb Came Together in Beirut’s Port

By Ben Hubbard, Maria Abi-Habib, Mona El-Naggar, Allison McCann, Anjali Singhvi, James Glanz and Jeremy White
September 9, 20220.

Fifteen tons of fireworks. Jugs of kerosene and acid. Thousands of tons of ammonium nitrate. A system of corruption and bribes let the perfect bomb sit for years.

Late last year, a new security officer at the port of Beirut stumbled upon a broken door and a hole in the wall of a storage hangar. He peered inside and made a frightening discovery.

Thousands of tons of ammonium nitrate, a compound used in explosives, was spilling from torn bags.

In the same hangar were jugs of oil, kerosene and hydrochloric acid; five miles of fuse on wooden spools; and 15 tons of fireworks — in short, every ingredient needed to construct a bomb that could devastate a city.

About 100,000 people lived within a mile of the warehouse, which had jury-rigged electricity and not so much as a smoke alarm or sprinkler.

-----An investigation by a team of New York Times reporters who conducted dozens of interviews with port, customs and security officials, shipping agents and other maritime trade professionals revealed how a corrupt and dysfunctional system failed to respond to the threat while enriching the country’s political leaders through bribery and smuggling.
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"For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments."

Warren Buffett.

Covid-19 Corner                       

This section will continue until it becomes unneeded.

Pfizer CEO Says Americans Could Get Covid Shot Before Year-End

By Riley Griffin and Anna Edney
Pfizer Inc. Chief Executive Officer Albert Bourla said it’s “likely” the U.S. will deploy a Covid-19 vaccine to the public before year-end and that the company is prepared for that scenario, pushing back against more tepid expectations shared by health authorities.

Bourla said Sunday on CBS’s “Face the Nation” that he’s “quite comfortable” that the vaccine the company is developing in partnership with BioNTech SE is safe and that it could be available to Americans before 2021, contingent on an approval from U.S. regulators at the U.S. Food and Drug Administration.

“I cannot say what the FDA will do,” Bourla said. “But I think it’s a likely scenario, and we are preparing for it.”

New York-based Pfizer and Germany’s BioNTech are seen as frontrunners in the race to develop a coronavirus vaccine, alongside Moderna Inc. and AstraZeneca Plc. Bourla said Pfizer and its partner have a 60% chance of knowing the efficacy of its still experimental vaccine by the end of October.

“Of course that doesn’t mean that it works; that means that we’ll know if it works,” Bourla said. The timing of clinical trial results depends on enough people in the study getting Covid-19 to make a calculation. But positive results could clear the way for approval, he said.
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https://www.bloomberg.com/news/articles/2020-09-13/pfizer-ceo-says-americans-could-get-covid-shot-before-year-end?srnd=coronavirus

Israel to Enter Second Virus Lockdown After Bungled Reopen

By Amy Teibel
Updated on September 13, 2020, 8:33 PM GMT+1
Israel’s cabinet voted to impose a second nationwide lockdown starting Friday to try to tamp down a raging coronavirus outbreak, brushing aside appeals from both a business world warning of economic strangulation, and the powerful ultra-Orthodox Jewish community.

Ministers voted Sunday to strictly limit movement, gatherings and economic activity for at least three weeks coinciding with a major Jewish holiday season.

Health experts “raised a red flag,” said Prime Minister Benjamin Netanyahu, whose emergency coalition government was formed in May expressly to tackle the health emergency. “Senior Health Ministry officials warned us that the morbidity situation requires immediate steps.”

If the Israeli public viewed the original lockdown in March as a health imperative, then the upcoming one is seen as the consequence of a government fiasco. An abandonment of caution after restrictions were eased, together with government inaction as cases climbed, have sent infections surging ninefold and deaths quadrupling since late May. Nearly one-fifth of the labor force remains out of work even though most of the economy has been open for months.

The Finance Ministry has estimated the new restrictions will cost the economy 19 billion shekels ($5.5 billion), and a relief program is to be presented by Thursday. The timing of the lockdown is fraught, and threats of non-compliance abound.

The restrictions are to take effect on the eve of the Jewish New Year, and the stringent restrictions will continue throughout a three-week season of major Jewish holidays, to the outrage of many ultra-Orthodox. Retail and leisure industries that had geared up for the holiday season will be clobbered.

Some businesspeople still trying to recover from the first lockdown in the spring say they’ll be forced to close unless the government offers immediate and substantial relief. Some are threatening to keep their stores, hotels and health clubs open, and joined the mass protests against Netanyahu that have been fueled by the health crisis.

Tens of thousands of ultra-Orthodox are also expected to defy the lockdown, gathering for mass holiday prayers in overcrowded conditions, the Haaretz newspaper reported.
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Germany Braces for the Second COVID-19 Wave

In Germany, the number of coronavirus infections is once again on the rise, but the disease is killing fewer people. Still, epidemiologists warn that the pandemic could spin out of control again this winter.
By Holger Dambeck und Veronika Hackenbroch  10.09.2020, 14.36 Uhr

Germany’s most famous virologist is at a loss. After returning to his highly popular German podcast after the summer holidays, Christian Drosten told his listeners that it’s "very difficult to assess” the current situation.

No one can reliably say how many people are currently infected with the coronavirus in Germany. The official number of cases reported by the Robert Koch Institute (RKI), the country’s center for disease control, could be two times lower than the true figure, or perhaps even 20 times lower. "We have to honestly admit to ourselves that we don’t actually know where the virus is right now.”

There’s only one thing that's certain: The number of coronavirus infections is rising again significantly. After lockdown measures were eased in mid-July, around 300 to 500 new cases were reported each day, but now that figure has increased to 1,300 a day, even reaching more than 2,000 on one recent occasion.

"I am very concerned about the latest developments in Germany," says RKI head Lothar Wieler. Are we witnessing the beginning of the dreaded second wave of the coronavirus in Germany? Will we soon be threatened with a new lockdown, with school closures and many other restrictions? Chancellor Merkel has also described the situation as "alarming.”

For many people, it is increasingly difficult to take these warnings seriously because there are very few people dying from coronavirus-related complications right now. There are also enough beds available in the intensive care units. Conditions like the overflowing ICU wards seen in Italy in the spring seem like the distant past.

And is the rising number of cases not simply explained by the fact that so many people have recently returned from vacation and also the fact that patients who have very few symptoms are now getting tested more regularly? Or is it possible that the virus has become less dangerous through a mutation?

"It’s a very human reaction to interpret all the signs as indicating that things could get better,” says Emma Hodcroft, an epidemiologist at the University of Basel’s Biozentrum, a center specializing in molecular and biomedical research. "But you have to be logical about it."

And the logic is clear: Studies from Britain and Spain show that the infection fatality rate of COVID-19 is 0.8 to 0.9 percent – many times higher than for influenza.

Face masks could be giving people Covid-19 immunity, researchers suggest

Mask wearing might also be reducing the severity of the virus and ensuring that a greater proportion of new infections are asymptomatic
12 September 2020 • 5:00pm

Face masks may be inadvertently giving people Covid-19 immunity and making them get less sick from the virus, academics have suggested in one of the most respected medical journals in the world. 

The commentary, published in the New England Journal of Medicine, advances the unproven but promising theory that universal face mask wearing might be helping to reduce the severity of the virus and ensuring that a greater proportion of new infections are asymptomatic. 

If this hypothesis is borne out, the academics argue, then universal mask-wearing could become a form of variolation (inoculation) that would generate immunity and “thereby slow the spread of the virus in the United States and elsewhere” as the world awaits a vaccine.

It comes as increasing evidence suggests that the amount of virus someone is exposed to at the start of infection - the “infectious dose” - may determine the severity of their illness. Indeed, a large study published in the Lancet last month found that “viral load at diagnosis” was an “independent predictor of mortality” in hospital patients.

Wearing masks could therefore reduce the infectious dose that the wearer is exposed to and, subsequently, the impact of the disease, as masks filter out some virus-containing droplets.

If this theory bears out, researchers argue, then population-wide mask wearing might ensure that a higher proportion of Covid-19 infections are asymptomatic. 

Better still, as data has emerged in recent weeks suggesting that there can be strong immune responses from even mild or asymptomatic coronavirus infection, researchers say that any public health strategy that helps reduce the severity of the virus - such as mask wearing - should increase population-wide immunity as well.

This is because even a low viral load can be enough to induce an immune response, which is effectively what a typical vaccine does.

While this hypothesis needs to be backed up with more clinical study, experiments in hamsters have hinted at a connection between dose and disease. Earlier this year, a team of researchers in China found that hamsters housed behind a barrier made of surgical masks were less likely to get infected by the coronavirus. And those who did contract the virus became less sick than other animals without masks to protect them.
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Next, some vaccine links kindly sent along from a LIR reader in Canada. The links come from a most informative update from Stanford Hospital in California.

World Health Organization - Landscape of COVID-19 candidate vaccineshttps://www.who.int/publications/m/item/draft-landscape-of-covid-19-candidate-vaccines




Some useful Covid links.

Johns Hopkins Coronavirus resource centre

Rt Covid-19

Covid19info.live


Technology Update.
With events happening fast in the development of solar power and graphene, I’ve added this section. Updates as they get reported. Is converting sunlight to usable cheap AC or DC energy mankind’s future from the 21st century onwards.

Understanding electron transport in graphene nanoribbons

Date: September 11, 2020

Source: Springer

Summary: New research aims to better understand the electron transport properties of graphene nanoribbons (GNRs) and how they are affected by bonding with aromatics - a key step in designing technology such as chemosensors.

Graphene is a modern wonder material possessing unique properties of strength, flexibility and conductivity whilst being abundant and remarkably cheap to produce, lending it to a multitude of useful applications -- especially true when these 2D atom-thick sheets of carbon are split into narrow strips known as Graphene Nanoribbons (GNRs).

New research published in EPJ Plus, authored by Kristians Cernevics, Michele Pizzochero, and Oleg V. Yazyev, Ecole Polytechnique Federale de Lausanne (EPFL), Lausanne, Switzerland, aims to better understand the electron transport properties of GNRs and how they are affected by bonding with aromatics. This is a key step in designing technology such chemosensors.

"Graphene nanoribbons -- strips of graphene just few nanometres wide -- are a new and exciting class of nanostructures that have emerged as potential building blocks for a wide variety of technological applications," Cernevics says.

The team performed their investigation with the two forms of GNR, armchair and zigzag, which are categorised by the shape of the edges of the material. These properties are predominantly created by the process used to synthesise them. In addition to this, the EPFL team experimented p-polyphenyl and polyacene groups of increasing length.

"We have employed advanced computer simulations to find out how electrical conductivity of graphene nanoribbons is affected by chemical functionalisation with guest organic molecules that consist of chains composed of an increasing number of aromatic rings," says Cernevics.

The team discovered that the conductance at energies matching the energy levels of the corresponding isolated molecule was reduced by one quantum, or left unaffected based on whether the number of aromatic rings possessed by the bound molecule was odd or even. The study shows this 'even-odd effect' originates from a subtle interplay between the electronic states of the guest molecule spatially localised on the binding sites and those of the host nanoribbon.

"Our findings demonstrate that the interaction of the guest organic molecules with the host graphene nanoribbon can be exploited to detect the 'fingerprint' of the guest aromatic molecule, and additionally offer a firm theoretical ground to understand this effect," Cernevics concludes: "Overall, our work promotes the validity of graphene nanoribbons as promising candidates for next-generation chemosensing devices."

These potentially wearable or implantable sensors will rely heavily on GRBs due to their electrical properties and could spearhead a personalised health revolution by tracking specific biomarkers in patients.

US Politics Betting Odds


"If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes."

Warren Buffett. Clearly, Warren has never heard of RobinHood.

The Monthly Coppock Indicators finished August

DJIA: 28,430 Up. NASDAQ: 11,775 Up. SP500: 3,500 Up.

The NASDAQ remained up. The DJIA and SP500 turned up in July. With stock mania running fueled by trillions of central bankster new fiat money programs, especially tech stock mania in the NASDAQ, the indicators are essentially worthless after all these years. I will discontinue this section at the end of the month.

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