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DDIntel - Corporate and Geopolitical Moves

DDIntel - Corporate and Geopolitical Moves
By DataDrivenInvestor • Issue #55 • View online

A lot just happened last week in the world of tech, geopolitics and financial markets. Apple, Foxconn, and other hardware producers have moved from exploiting Chinese labor to exploiting Indian people. After all, we all know that the corporatist (to be read communist) regime of corporations is all about reducing expenses and increasing profits by any means necessary. Of course, the poor people which are exploited in India are revolting, since they can’t be oppressed so easily to accept subhuman working and living conditions, as it happened in communist China for years. You can read more about this in this week’s spotlight (below).
Speaking of the finance world, asian markets had another major selloff after a dramatic closing ceremony of the Communist Party Congress last Saturday, where China’s former leader Hu Jintao was escorted out of the meeting by force. This, along with China’s projected rough times ahead, sent Hang Seng Index 9% lower compared to just a week ago.
This week’s DDIntel, as usual, picked out a few noteworthy articles from some of our best contributors. Let’s get to it!
From “Made in China” to “Made in India”
“Made in China” to “Made in India”: The Unintended Consequences of Apple’s Move to India | by Sam Warain | Oct, 2022 | DataDrivenInvestor
The world is no longer run solely by governments. Today, megacorporations like Apple influence how a country is run, the trajectory of the global economy, and even global politics.
There is increased economic turmoil in China, caused mainly by Covid19 crisis and its zero-covid policy that disrupted economic and production activities. That’s why Apple made its move to diversify its production capabilities, by moving some of it to India.
Considering that 50% of Apple’s revenue (approx. $200 billion) comes from iPhones alone, it’s an obvious move for them to try and secure their best source of revenue by decreasing its reliance on Chinese manufacturers.
India is clearly a great choice for Apple since it has loads of free and inexpensive labor (having a very high unemployment rate) and impressive economic growth in the past few years. This growth is especially accentuated in the phone manufacturing area, where India attracted other important technology companies, such as Foxconn, Nokia, Pegatron, and many others.
This makes you wonder: is India emerging as the world’s greatest factory in the near future, dethroning China? And if so, what implications will this have on the global economy and our daily lives?
You will find all of this and much more, in this week’s spotlight article written by Sam Warain.
Taleb’s 3 Financial Rules
Taleb’s 3 Financial Rules. Figure Out Asymmetries | by Carlos Pascual | Oct, 2022 | DataDrivenInvestor
Nassim Taleb is best known for his book “The Black Swan,” which predicted the 2008 financial crisis two years before it occurred. He is also known for developing the “antifragility” perspective, which captures a property of strength and robustness that is gathered through the experience of shocks, disorder and turmoil. This means that a system or entity (and, by extension, a human) will become stronger and more capable due to the bad things happening to it. He has three financial rules that can help investors make more informed decisions: 1. Keep your mind clear; 2. Identify asymmetries; and a funny but important one 3. Never speak with morons. Learn what these 3 rules mean, by reading this great article written by Carlos Pascual.
The New 60/40 Portfolio
The New 60/40 Portfolio: Bonds, Bitcoin, and Cash? | by Mark Helfman | Oct, 2022 | DataDrivenInvestor
Considering the current world situation, which only seems to be deteriorating, a critical question arises for investors: How can I secure my money and protect them from inflation and other major macroeconomic events that may take a bite at them? Well, the answer to that question is not easy, and no one may actually know. This article showcases a great strategy that you can use to make sure you come out on top.
Math for Problem-Solving
How to Use Mathematics For Problem-Solving in Business & Entrepreneurship | by Thomas Vato | Oct, 2022 | DataDrivenInvestor
Math may spook many people, even in the more educated world. It’s a difficult subject to understand and it’s even more difficult to master. But there is no denying in anyone’s mind that math is a useful tool. It can be used to solve any problem, including calculating personal finances, making good business decisions, and investing in the stock market. Taking a particular problem area, breaking it down into its principal components, and analyzing it using mathematics can totally change your decision-making for the better. Find out how to do just that in this article by Thomas Vato.
3 Keys to Success of Bridgewater
The 3 Keys to the Success of Bridgewater, the Largest Hedge Fund Founded by Ray Dalio in 1975. | by Sylvain Saurel | Oct, 2022 | DataDrivenInvestor
Ray Dalio is one of the wisest investors out there. He helped build Bridgewater hedge fund up from scratch and, more importantly, he was critical in the success it has had since 1975 when it was founded. This success of Bridgewater has 3 key principles at its epicenter which helps ensure its prosperity. The first is its investment strategy, the second refers to clients and managers - all recruited for the long game, and the third is the company culture, where risk and competition are encouraged. Read more about these principles in this article.
Stock Splits and Stock Prices
Can stock splits tell us something about future stock prices? | by Piotr Szymanski | DataDrivenInvestor
Stock splits can appear to be a puzzling practice for traders because they do not affect the amount of money you have invested in the company. It begs the question, what is the point of a stock split? The short version is that the stock split makes purchasing a whole share easier by lowering the price per share. When a company splits its shares, it also usually means that many investors are interested in purchasing more shares. If you want to learn more about how stock splits affect a company’s overall stock price and what the trend is after the split, check out this excellent article.
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