Monday, September 9, 2013

Oddly Relevant (Sep-9-2013)

Quants-R-Us? Algorithmic Trading Trickles Down To Individual Investors: Armed with $4.5 million in funding, the 2011 Harvard grad recently launched a Web-based platform called Rizm, designed to let individual investors with no coding skills build computer programs that select and trade stocks automatically, similar to the trading programs used by quant funds and high-frequency trading firms. [Note: The alpha-capture game of trading is getting harder and harder, no?]…Source: http://www.forbes.com/sites/jeremybogaisky/2013/09/04/quants-r-us-algorithmic-trading-trickles-down-to-individual-investors/
The Dubious Future of the American Car Business—in 14 Charts: From GM Research, the overall recovery had been slow w/ weak job adds, but auto sales have kept pace with past recoveries as the total cost of operating a car keeps going up + inflation-adjusted price of an average new vehicle is near all-time highs. Meanwhile, inflation-adjusted gas prices have scarcely been higher – bringing us to an older and richer U.S. Car Market…Source: http://www.theatlantic.com/business/archive/2013/09/the-dubious-future-of-the-american-car-business-in-14-charts/279422/
Why Is Chicken More Expensive? Ask McDonald's: When McDonald’s (MCD) introduces a new menu item, the entire food industry feels it. The company added apples to its menu and became one of the country’s largest apple buyers. It put cucumbers on its new McWrap and now expects to buy 6 million pounds of cukes this year. Now Mighty Wings are coming back. From Sept. 9 through November, McDonald’s is expected to sell a grand total of 250 million wings, and some analysts say McD’s wing-buying spree for this promotion last year drove up wholesale prices…Source: http://www.businessweek.com/articles/2013-08-28/why-is-chicken-more-expensive-ask-mcdonalds
The biggest risk Zillow faces isn’t what you think it is: YELP. “All I’m pointing out is that in an increasingly social online experience, the value proposition of selling leads slowly gives way over time to recommendations, reviews & referrals from trusted online sources. Yelp is the leader in the overall online space, and at some point will need to think carefully about home to position itself in the real estate vertical. And if Yelp does make the decision to compete more forcefully, what does that do to Zillow?... But what if Yelp decides to disrupt that model, much like Zillow has do in the past to its’ former competitors? It’s not a stretch to see Yelp buying Move (Nasdaq: MOVE), which has the largest in-house proprietary database of listings in the online space. Yelp could then overlay its extremely large database of recommendations alongside all property searches. Looking up an apartment on Telegraph Hill? Yelp could provide you with the top recommended movers, painters and vermin extinguishers in the neighborhood. Wouldn’t that site be a better value proposition for the consumer long term? Source: http://www.littlebear.us/the-biggest-risk-zillow-faces-isnt-what-you-think-it-is/
Put away the knitting, Video games improve cognitive ability in the elderly: The prefrontal cortex, a region of the brain responsible for attention, is one area being explored by researchers. In the meantime, the gaming and brain-training industry might find new customers. With more disposable income, free time and discipline to play games in moderation, older people could be a healthy market for a whole new generation of video games.
Note: The 1980s mark the 1st decade where video games enter the masses; for the 18 year-olds at that time who grew up with this culture, 2020+ will be the decade when they retire and commit to video games en masse (at least some of them). To the video game industry, the biggest bull market is yet to come. And you want to long a platform company.

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