Today Bloomberg reported, based on conversations with unnamed sources, that Apple (AAPL) is likely to slash its projected iPhone 13 production targets for 2021 by as many as 10 million units because of prolonger shortages of the chips used in its newest smartphone model.
Today, September 25, I’m making Adobe (ADBE) my fourth pick in my Special Report: 10 Greatest “Savings Account Stocks.”
Today, September 27, I’m making Nvidia (NVDA) my fifth pick in my Special Report: 10 Greatest “Savings Account Stocks.” You’ve probably noticed that now all five of the first five picks for this list of 10 Greatest “Savings Account” Stocks are technology stocks. Microsoft. Taiwan Semiconductor. Applied Materials. Adobe. And now Nvidia. And it’s only reasonable to ask Why?
Today, September 25, I’m making Applied Materials (AMAT) my third pick in my Special Report: 10 Greatest “Savings Account Stocks.”
I’d call the policy being followed by the People’s Bank in the China Evergrande crisis “Try to support the markets but see how little we can get away with.” Today Chins’s central bank supplied liquidity to the country’s financial markets with an injection of short-term cash. But the move fell far short of the kind of “Charge of the People’s vanguard” that the bank has mustered in earlier crises. And, importantly, there was no big statement of market support to go with today’s actions.
Today, September 20, I’m making Taiwan Semiconductor Manufacturing (TSM) my second pick in my Special Report: 10 Greatest “Savings Account Stocks.”
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. My forty-eighth YouTube video “Quick Pick: Albemarle” went up today.
You know how a savings account works, right? You deposit money in a bank. The bank uses your deposit to make a loan. Out of its profits, the bank pays you interest. That interest payment is a pittance today. 0.5% if you’re very, very lucky. But the national average is just 0.06%. What I’m calling “savings account stocks” work the same way that a bank savings account does. (Share prices do fluctuate but in the long run I’d argue that these stocks are as safe as a bank savings account.) And they pay an annual return that’s 10X–or much, much more–higher–than the paltry 0.5% now offered by the highest yielding savings accounts. How do these stocks work and why are they so much better than bank savings accounts? You–investors–give the company capital by buying newly issued shares or company bonds. The company invests that cash in making widgets or apps or whatever. And the company returns the bulk of the profits from those investments to the owners of its stock in the form of dividends, stock buybacks, and the appreciation in share price that results from the growth of the company’s business over time. I’m posting the first of my 10 Greatest “Savings Account Stocks” today and my Special Report will name a total of 10 great “savings account stocks” in posts over the next week. Today’s Greatest Savings Account Stock Pick: Microsoft (MSFT). The average annual return on Microsoft shares has been 28% over the last 10 years. Beats that 0.5% on a savings account, no?
Back on September 4 I posted a video on YouTube and this site “September and October 2021 Worse Than Usual for Investors?” that argued that September, the worst performing month for the Standard & Poor’s 500 from 1950 through 2020, and October, historically the home of the biggest one-day or one-week stock market crashes, stood a good change of being even worse than usual this year. I cited factors such as the Fed’s September 22 monetary policy meeting, a potential stalemate over the raising the debt ceiling, and economic uncertainty created by the Delta Variant (see last weeks weak jobs report as evidence on that front) as reasons for thinking that we could see a repeat of the historical weakness and volatility this September and October–but with a bit of supercharging. I don’t want to revisit all the reasons I gave in that video–Hey, just watch it, ya know?–but let me add a couple of points that I didn’t mention in the video. Like the effects of the continued shortage of chips on car manufacturers and hence car sales. Like the run-off in federal Pandemic economic help that’s now scheduled for this fall. Like signs of weakness in consumer sentiment and business confidence. Instead of more on “the problem” lets talk about potential solutions- the “what should I do stuff.”
Taiwan Semiconductor Manufacturing (TSM), which makes chips for everybody and everything, plans to raise prices on its silicon by 10% to 20% in 2022, DigiTimes reported today. The company will raise prices on “mature-technology chips” manufactured on 16 nanometer or larger processes by 20%. Leading-edge chips with circuits smaller than 16 nanometers will see price increases of about 10%.
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. My forty-fourth YouTube video “Amazon miss is a big deal…for all stocks” went up today.
