Economist Ted Bauman of Atlanta, Georgia, is the editor of The Bauman Report. He shares his perspectives in this monthly publication when it comes to economic trends, protecting wealth and privacy, safely growing a financial portfolio, and international immigration. He spent most of his working career in South Africa but returned to the United States in 2008.Over the summer of 2018, Ted Bauman wrote an article about Amazon and why shareholders should have some concerns. In this article, he related the story of Steve Jobs and Apple. Steve Jobs released the iPhone in 2008 and it changed Apple’s focus and the entire business investment world. The iPhone is by far the most popular smartphone around the globe and generates 75 percent of Apple’s annual revenues.
The iPhone gave Apple the power of a monopoly when it comes to mobile devices, Ted Bauman explained in his article. They now have an entire ecosystem of products and services that have made millions of people feel locked into. It was the first company to ever exceed $1 trillion in value.Jeff Bezos of Amazon is now serving in a similar business leadership capacity as Steve Jobs had. This company is worth over $560 billion and just about every product imaginable is sold on Amazon. About 90 million people are Prime members and many only shop at Amazon when buying something online.
Ted Bauman wrote that, despite this success, Amazon doesn’t have monopoly powers like Apple continues to enjoy. He wanted to warn shareholders of Amazon in his business article about some vulnerabilities in this company he saw. Retail experts say that around half of everything sold on the internet will be bought through Amazon within three years. He says this just isn’t so.As he points out, Walmart generates three times as much annual revenue as Amazon does. Even the Kroger chain of supermarkets outpaces Amazon when it comes to income. Right now Target, Walmart, Apple, Macy’s, and eBay control 56% of all e-commerce. Amazon is a big company, Ted Bauman says, but it certainly is no monopoly.
The stock market has taken investors on a wild ride throughout 2018. A market that had featured historically low volatility for the previous two years has seen volatility and all of its nasty effects come roaring back. At the same time, the market was in negative territory for the year as late as the 10th month of the fiscal year, representing a level of underperformance that hasn’t been seen in a decade and possibly signaling the end of the bull market.
But Shervin Pishevar, one of the most prominent venture capitalists in the world today, says that this development is not the slightest bit surprising. In fact, Shervin Pishevar had predicted way back in February that the stock market would ultimately end up lower in 2018 that it had begun. Shervin Pishevar has consistently been sounding the alarms against the Fed’s open market operations and the consequences that such actions have had both on the equity and bond markets. He says that the can-kicking policies of the Federal Reserve have made the current economic situation worse than it would have otherwise been. Investors now face a situation where their current bond portfolios could soon lose massively at the same time that equities plummet.
Stocks are historic overvaluations
Shervin Pishevar says that the stock market has reached a point of historic overvaluation. This has been heavily and directly influenced by the policies of the nation’s central bank. Through driving interest rates and bond yields through the floor, the Fed has encouraged massive levels of corporate stock buybacks.
At the same time, it has forced investors to chase yields wherever they can be found. In this case, investors have piled into equities, driving the prices of the U.S. equity markets through the roof. Pishevar says that this will eventually cause an inevitable correction as bonds begin to rise. But this will spell double trouble for those who currently own both bonds and stocks.
Current bonds, with their extremely low yields, could lose a great deal of value just as equities are also crashing. Pishevar says that this could cause a great deal of pain among investors in the months to come.
Gareth Henry’s service with the Fortress Investment Group was an important part of the company’s success. Because of his contributions, the company was able to succeed in foreign markets, including Europe and the Middle East. His position as the company’s head of international investment relations made it possible for him to attract more investors to put their money into the Fortress Investment Group and see it increase. The company, founded in 1998, is now one of the largest private equity firms in the country. For 20 years, the company focused on how they can serve their clients, while at the same time, expands their influence to markets that have a lot of opportunities.
Originally from the United Kingdom, Gareth Henry moved to America after he applied for the position with the Fortress Investment Group. Before he moved to the United States, he worked for several companies specializing in business and finance. After he graduated from the University of Edinburgh, he started to look for a job that could pay him a high salary. He found himself working for Watson Wyatt, as an analyst. It was his job to provide vital statistics for the company and analyze market trends that can affect the company’s performance. He worked here for less than three years and transferred to SEI Investments where he stayed as an investment manager. He stayed here for a year before moving to Schroders Plc, where he was promoted as the company’s director for strategic solutions. His experiences from these companies turned him into a valuable company asset, and the Fortress Investment Group made a good decision in hiring him. To know more about him click here.
When he reached the United States, Gareth Henry immediately showed his strengths and weaknesses, demonstrating his strategies on how the company would succeed in foreign markets. He checked the company’s performance in Europe and the Middle East and formulated his approach on how they can reach more clients. Through creative thinking, Gareth Henry was able to develop new techniques that attracted a lot of investors and business people. Through his determination to succeed, the Fortress Investment Group managed to build their stronghold in Europe and the Middle East.
Visit his website: https://www.garethhenry.com/