The Watchdog on Wallstreet Weekly Recap for 12/5/22

12/5/2022 What resulted from Tim Cook’s meeting with Republicans

I made an appearance on Fox Business on Friday, and one of the subjects of discussion was Tim Cook and Apple. A Fox Business reporter asked Tim Cook some questions, but he just ignored them. Tim Cook met with Republican legislators later that day, and they left the meeting satisfied with Apple’s plans for China and a variety of other matters. 

I would like it to be known that Tim Cook is the CEO of one of the world’s most influential and consequential companies. Legally, he has a fiduciary duty to his stockholders. The Chinese government warns Tim Cook that if he does not comply, he will be shut down, and no one will find an iPhone in their stocking this Christmas. Tim Cook will, in fact, move his supply chain out of China, just as we predicted.

12/6/2022 Good news is not bad news – How can we identify conventional wisdom

As you are all aware, I go after conventional wisdom. I’ve been doing it for a long time, and this notion that keeps spinning around bothers me deeply. It is currently on the market. It will fade. That good news is actually bad news. 

So we have good economic news in the manufacturing sector. There is some good economic news about the fact that inflation is going down and home prices are decreasing. That people in this country can find work. That Taiwanese Semiconductor company (TSMC) is currently investing $40 billion in a new plant. We’re going to make all of our own chips and will not have to rely on anything coming from Taiwan. 

One good story after another. However, we are told that this is inflation. That it’s terrible. That this is as bad as it gets. Baloney! The saddest thing in the world is wasted talent, and guess what? We have plenty of it. We do. We need to utilize it.

12/7/2022 Why are Carvana and other cool, neat, and trendy businesses not business models?

It looks like Carvana is going into bankruptcy, and you can chalk it up to another “we told you so” moment. However, it’s not just Carvana. It’s a long list of businesses that we warned you about. They’re cool, neat, and trendy, but they’re not business models. Carvana was all of those things, but there is such a thing as being too clever by half. They failed to see the big picture, and unfortunately, many investors out there got sucked into the whole greater fool investment program by many of the insiders out there. They inflate something, sell it to you, and then disappear. That is the name of the game, and it is one of the ways to make money on Wall Street. 

See, I didn’t have an ethical bypass at birth. That’s something I can’t do. That’s something Markowski Investments will never do. As an independent financial advisor, we can give you information without trying to sell you anything. This is because ethics and integrity are paramount to our business. 

We, at Markowski Investments, started this business because we thought that big Wall Street firms didn’t meet the needs of individual investors well enough. Our goal is to teach, inform, and enlighten you while making sure your money stays safe and grows in line with your goals.

12/8/2022 Why you should be careful of celebrity endorsements

Today, Kevin O’Leary, known for his role on Shark Tank, answers questions on CNBC regarding his involvement in FTX. He was shilling for FTX and got paid $15 million for it. That’s right, $15 million to be the spokesperson for FTX. People are now upset for the same reason they’re upset with Larry David and Matt Damon, the other ones who endorsed FTX as well. But these individuals should have known better, right? Kevin O’Leary was claiming that he fell victim to “groupthink.” He wouldn’t be the first and he is not going to be the last. In fact, Stanley Druckenmiller, one of the best investors of all time, fell victim of the Dot-Com run-up. Again, be careful of celebrities pitching things.

12/9/2022 Why Fed cannot fix inflation

The PPI numbers that came in were a little hotter than expected, but they were still moderate compared to the previous year. I’m looking at the inflation figures, and TVs are 20% cheaper than they were a year ago. Prices on smart phones are down. Even the prices of tickets to baseball games have dropped. The bare necessities, however, have once again increased in price. 

Chair J. Powell and the Fed cannot fix inflation. They can’t. Raising interest rates is a blunt instrument. They can’t handle this situation. It’s not a MacGyver kind of situation; where all you need is some bubble gum and some duct tape to fix it. 

You want to help in dealing with labor costs and maybe labor getting out of control? You want to solve the problem? So let’s fix it in Washington. How about some immigration reform? Novel concept? How about donkeys and elephants? Figure it out!