This morning’s news brought a couple of headlines that are relevant to the last post on The Changing Structure of Technology Companies. The first article is from the Nikkei Asia Review which states that “…Global consumer electronics makers HP, Dell, Microsoft and Amazon are all looking to shift substantial production capacity out of China, joining a growing exodus that threatens to undermine the country’s position as the world’s powerhouse for tech gadgets.”
Working through a framing exercise of a series of cross market observations connecting to several historical corollaries to produce the following hypothesis: there will be an acceleration of change with regard to corporate structures, with emphasis on technology companies. The change that will occur will be impactful on a broad scope to include the private-equity association that has become integral to the technology market segment. The resulting reversal of off shoring to on shoring will have significant effects across the technology industry.
35,000 feet over Utah, one glass of scotch down, ear buds in and my internal notes sent; it is time to write some VMworld 2015 impressions for the blog. In no particular order, here they are: Continue reading
Ahead of the NFP, I prefer be short the SPX and YEN and long VOL. I am going to look for some stupid strong GOLD day and will short GOLD when I see it. I think GOLD is going to $1000. Regarding my prior post on the carry trade being blown up and the change from duration to economic targets and what this did for gamma…blah, blah…read this article on Bridgewater interest hedging.
The following is from my friend and former investment manager Doug Rudisch. The essay has already been reblogged on ZeroHedge.com I asked Doug to post it to my blog a few weeks ago when I read an early draft. Even though it is now replicated on few major financial sites, I thought it was worth posting here for the technology focus.