Alchanati Campbell & Associates
Competitive edge. How is it created? Speed. Money. Power. Influence. Better physical, mental and emotional capability. Diverse connections and a wide network. Having more knowledge that is well-rounded and vast, and having better access to information. Having an edge is how you win more customers, increase your top-line (revenue/sales), beat your competition, gain status and power... making yourself a somebody in this world. Knowledge: turning data into applicable information that is then manipulated for your particular use. It’s knowing how things are connected together. How A affects B and how C can be used to avoid A and B altogether. How people behave in certain situations, and how and why they react. Knowing which market to target and knowing how much time, capital and energy to allocate in every endeavor you pursue. Knowing who to be connected to and knowing which strings to pull to make the puppet show have a standing ovation at the finale. It’s a strategy and a skill set learned from years of experience. Experience of booms and busts from working with different people with different cultures in different places all around the world.
The Market. Oil prices and Sterling affect the UK’S inflation rate. Inflation rises when demand hits a “potential level”. Companies don’t necessarily respond to higher demand by raising prices. Stock prices have shown uncommon strength. The stock market expresses the culmination of real-time money-backed decisions made each day by tens of thousands. My theory: The global economy is slowing down, debt is starting to be harder to pay off and more individuals and corporations are in debt, and the US economy’s recession is at a hold due to politics. The Feds are being controlled by the government and they are not doing their job properly. California’s drought officially ended after being in a drought for 7 years. Lyft filed to go public. Levi Strauss just became publicly traded. A quadruple Witching Day: A day on which four asset types (stock index futures, stock index options, stock options, and single stock futures) expire simultaneously. Volatility is a measure of the breadth of movement in the market, an index of an individual asset is currently experiencing. Implied Volatility is a measure of the expected volatility the market, an index or an individual asset is going to experience in the future. If investors believe a stock or an index is going to make a large move in the future, its implied volatility is high. Higher prices for oil and gold have been responsible for the outperformance in commodities. No more interest rate hikes in 2019 which means the lower interest rates will incentivize borrowing and raise the prices of stocks. The 90-day and 10-year Treasury yields are .05 basis points away from each other.
Case Study: Vietnam. Corruption is embedded into the government in dozens of countries around the world, but it happens in every single country undoubtedly. Vietnam is one of these countries. Vietnam is a developing economy and relatively a 3rd world country. It’s mostly a cash society, but the government has this almost impossible goal of making it a cashless society. Vietnam is a net exporter and specializes in tourism, manufacturing (electronics, metals, rubbers, and plastics), textiles and agriculture (fruit, coffee, pepper, rice). Total population of 95.54 million(with 70% of the population under 40 years old) and GDP of 223.9 billion USD in 2017. Forecasted, Vietnam will the second best-emerging market in regard to growth with an estimated yearly growth rate of 6-8% for the next 30 years. About 80% of the economy consists of small to medium-sized local businesses with the rest of the GDP coming from trade and foreign investors. The biggest mafia in the world is the communist party. They kill sparingly, but they are vicious all the same. Corruption in developing countries enables growth in order to compete with other nations and the economy might depend on corruption to keep themselves in the global race, but it only benefits a select few. Imagine corruption as a big spider web with thousands of different end point connected to one another. If you are having a million dollar debt issue with another individual and that individual “employs” the economic police to collect, all you would need to do is know which higher up official you need to pay off (of course for less than a million) and your problem is solved. Money starts at the bottom and is fractioned off on its climb to the top. Public officials are on pay-rolls and “envelopes” is a term that’s used not in the way you know it as. Vietnam’s industrialization was delayed due to international embargoes, countless wars, lack of trade in the past and their bad relationship with China, and in order for Vietnam to become developed they need to fix their corruption, improve their human rights, increase their education, divest from state-owned businesses and have a free-market with the support from a communist-free government.
History: Vietnam. The dispute of power and values. The influence of strength and control. The longing for freedom, safety, and peace of mind. With the hope and goal of prosperity, independence, and unity. The effects of the Vietnam War still cast a shadow on this country. It stunted its growth, scarred its citizens and left the country in a continuous recovery. Read up on history, educate yourself, remember those who lost their lives, respect the culture, but in the end, all they want is to forget and forgive.
The Alchanati Campbell and Associates Team
WHAT'S UP FRIDAY? is a weekly newsletter that will give you a summary of "What's up?" on Wall Street, in the US and around the World written by The Alchanati Campbell and Associates Team. What makes us unique is we focus on long-term knowledge; knowledge that will still be useful to you 10 years from now.