The market is not a naturally safe place. One must tread with caution, not fear. Fear is debilitating, yet there are times when I feel fear, that cold sense of dread, that inkling that bad things lurk out there. This morning, when I read the words below, I felt that tingle on the back of my neck, the alarm from my sixth sense that tells me danger is still at hand.
- If confirmed by the Senate as chairman of the Commodity Futures Trading Commission, Massad would lead an agency that was given vast new regulatory powers after the 2007-09 crisis, and is now tasked with reining in the relatively uncontrolled trading of complex derivatives – a $630 trillion global market.
No, the nomination of the man does not frighten me. I know nothing of him. What frightens me are the words that speak to the fact that much of what happened in 2008 and 2009 came out of the huge, and I mean huge, derivatives industry and nothing major has been done to regulate that industry. Greed still reigns.
- The CFTC, long an unexciting agency overseeing agriculture futures, has only just been put in charge of the swaps markets, and has yet to write some of its planned rules.
I understand that the derivatives industry alone did not cause the financial collapse. A host of bad things came into confluence in the most extraordinary way, but underpinning that flow were the trillions in bundled derivatives that spread out about the globe and ended up being worthless. So, I will keep an eye on the CFTC to make sure that the “planned rules” are, in fact, written …
I am still looking into the mobile device industry, specifically, what opportunities are found in the verticals that support the increasing use of mobile devices. I came across a recent study (August) conducted by AOL, in conjunction with the University of Virginia School of Engineering and Applied Sciences, that speaks indirectly to my research. Although the study does not directly lead me to opportunity, it does confirm that I am going in the right direction.
- Consumers are now spending one-quarter of their digital time at home on their tablets or mobile phones, according to the study, and three-quarters of the mobile ad impressions tracked were viewed inside the home.
I interpret this conclusion to mean that “mobile devices” are, actually, “home devices” as well. I intuitively understood this, but the actual data confirms the ubiquitous use of mobile devices. It also points to the fact that online shopping (actual purchases) via mobile devices is a tangible reality.
- A study of 100 million “conversion events” across 4 major verticals (telecom, retail, auto, and travel) and multiple devices – including mobile phones, desktop computers, and tablets – reveals that 31% of said conversions took place on a mobile device.
Further data points to a sizeable increase in the “conversion” rate relative to mobile device usage.
- The proportion of conversions taking place on a mobile device has grown by 28% over the past year.
The above data presents four broad verticals to research for opportunity. Of the four, the telecomm and the auto industries are the most interesting for me. I will keep on looking and when I find what I want, I will let you know.
In the meantime, consider the economic data below. I suspect the dollars saved on fuel will convert to retail dollars soon enough.
- The national average price for a gallon of regular gasoline stood at $3.18 Tuesday, down from $3.24 a week ago and $3.34 a month ago, data from AAA’s Daily Fuel Gauge report show. About one in four U.S. gasoline stations is selling regular gas for less than $3 a gallon, and about 10% are selling it for more than $3.50 a gallon.
The price of a gallon of gas is now at the price it was 33 months ago. Yup, the price of gasoline is now almost at a three-year low. This news is, arguably, the best economic news of all the good economic news of late. After all, corporate profit is all about consumer spending, so lower gas prices are good news for consumers, as well as the market.
Speaking of good news for consumers and the market …
- US Airways Group and American Airlines will be allowed to merge to become the world’s largest airline after they agreed to give low-cost competitors more access to several key U.S. airports, including in New York and Washington.
Could the above mean consumers will now have more opportunity to find cheaper airfares? Certainly some will, but how many (me?), only time will tell.
Trade in the day; Invest in your life …
