Posts By: Tyler Marpes

HP Divided In Hopes To Conquer

HP-LogoThe Great Depression scorched the 1930s like a wildfire, showing no bias and engulfing millions in the crippling flames of economic crisis. In 1939, as the Depression came to an end, a technology ingenue arose from the smog.On New Year’s Day in 1939, Bill Hewlett and Dave Packard founded Hewlett Packard inside a backyard garage. Now, after 76 years and periodic highs and lows, HP ceases to exist as the entity originally forged in Packard’s garage.

A company whose standard

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Global Internet Access – The Race Is On

48405289  ‘Global internet access’ has become a paramount goal of     humanitarian effort. Companies like FaceBook, Microsoft and Google are chomping at the bit to provide broad internet access in the most remote corners of the earth. Google’s latest initiative, Project Loon, sends balloons into the stratosphere to boost 4G signal to countries like New Zealand and, most recently, Indonesia. Facebook’s Mark Zuckerberg finds himself particularly concerned with connecting India to the internet, and ultimately of course to FaceBook. India has a population just north of 1.2 billion with less than 20% having internet access. A market of this size stimulates internet developers to pioneer the cause. However, FaceBook and Google may be late to the party, as far as India is concerned.

An Indian company based in Bangalore may have the necessary technology to provide access to most, if not all 1.2 billion people in the country. Saankhya Labs has developed Meghdoot, a transmitter that utilizes TV white space to provide and boost internet signals. At the core of the transmitter lies a microchip no bigger than a postage stamp. The Pruthvi chip powers the transmitter and allows it to convert the unused TV bandwidth into amplified internet signal.

A New Era for Birdmen

drone1As a child, I loved remote-control toys with complex mechanics. If the toy happened to fly, so much the better. Unlike most kids, I wasn’t too concerned with commandeering them for a role in my latest GI Joe reenactment. I took them apart and attempted to put them back together again, often finding myself in a Humpty-Dumpty situation…“all the king’s horses and all the king’s men….”

Although my RC car days are long gone, the rapidly growing drone market has peaked my interest, as it has with many other people. Drones – long used in warfare for their stealth, maneuverability and often undetectable nature – have become increasingly popular with the masses (looking to be the most popular Christmas gift of 2015). Current drone prices range from under $100 to upwards of $2,000. The majority of drones on the market offer the advantage of aerial pictures and 360° video capability. While these consumer drones are hardly military grade, it seems they pose a challenge for air traffic controllers and a safety hazard for aircraft. Air traffic controllers state that the minimum safe distance for any object to be near an aircraft is 1,000 feet plus.

Your Energy is the Key

green-energyFor Bill Gates, reinventing the wheel is unnecessary. His focus is on changing how the wheel runs. Over the last decade and a half, Gates has been one of the largest proponents of energy research and development. In 2000, he and his wife Melinda founded the world’s greatest transparently-run private venture: The Bill & Melinda Gates Foundation. BMGF concerns itself with the health and welfare of the world’s poorest communities. The foundation’s recent work includes the Omni Processor which aims to convert fecal sludge into pure clean water and a source of energy.

In order to meet basic human needs,

The Auto is “On Auto”

google-driverless_3147440bOver the better part of the last seventy-plus years, passing the driver’s license exam was a rite of passage. Teens longed for the day when they could get behind the wheel of Dad’s old Mustang and leave behind a cloud of dust as they raced towards the horizon. Sitting in the driver’s seat with a parent alongside yelling “Hands 10 and 2… eyes on the road… use your turn signal!” became quite the typical family outing. Eventually, that driver’s license brought you freedom and responsibility – road signs for an ‘Adult Life Ahead’. 

Patience Tames the Beast

 stock market crash illustration with graph going down and bear As a child, I often recall adults saying “Patience is a virtue,” or “Good things come to those who wait.” Living in a society whose zeitgeist revolves around the individual and instant gratification, patience tends to fall by the wayside. While there is inherent importance in risk-taking in order to achieve greatness, sometimes simply biding your time is the best thing to do. One of the caveats of playing the stock market is its incredibly volatile nature; you mess with the bull, you get the horns. To become a wise investor, you need an equal measure of risk-taking and knowing when to be patient. 

What Causes Volatility?

In terms of a volatile market, we have to look at both the short and long-term fluctuations of market value. The simplest way to address short and long-term volatility comes with an understanding of supply and demand. Prices are driven up when demand is higher than the amount being sold; inversely, prices drop when more people want to sell than buy. The effects of supply and demand on the market can be seen daily in the market’s closing numbers.

Many believe that a company’s valuation largely determines the stock price, but many are wrong! A company’s value (price multiplied by outstanding shares) does not determine the stock price; rather, it is the opposite. Another important key concept is a company’s earnings. In theory, earnings should be the limiting factor for why a stock rises or falls. Au contraire, mon frère. The earnings determine the ability for the company to turn a profit, while the stock price is determined by the interest placed in the stock by investors.

Long-term stock fluctuation (positive or negative) relies on supply and demand principles, as does short-term stock fluctuation. However, there can be factors outstanding as to why a market would go through a period of intense highs or lows. During times of war, low economic prosperity due to unemployment, or periods where foreign trade decreases, the market (usually) tends to take a decline due to investors not putting money back into the market. On the flip side, periods of intense prosperity seem to drive market values higher, due to investors having more money to spend.

How Do We Counteract Volatility?

Short-term volatility really has no way of being stopped or counteracted. The market will always undergo some type of decrease, increase and leveling out, stemming from fickle investors just like ourselves. We all try to increase our profit margins in the long term through wise investing, but short-term money can be made through incremental buying. If you don’t have a broker and rely solely on your own wisdom and whatever you can glean from your TV financial news channel, incremental buying should be the ace up your sleeve. As the market ebbs and flows from hour to hour, buying one-hundred shares per hour (more or less, depending on the current price) allows you to increase your chance of making larger gains. Buying stocks hourly allows you to decrease the overall money spent per stock when price decreases and increase overall profit per stock when price increases.

Incremental buying works nicely for the long-term effects of a volatile market as well. However, the best tool you can use to curb the effects of long-term volatility is patience. When experiencing a difficult market similar to the one we have now, sometimes the best thing to do is just wait. I would personally advise taking the incremental route, primarily as a mid-risk/high-reward option. There’s always the chance of catching the stock at a low point, right before the soar. But patience is one of the greatests tools in a good investor’s arsenal. I stress the importance of patience for two reasons. First, history shows that markets trend toward stability. Second, rash decision-making backed by poor market understanding makes you no money. Riding the wave to shore works better than fighting the current.

When Will It Stop?

BlackRock Inc. has called for a halt on the market if volatility increases. A halt on the market would cause a temporary cessation of trading in order for investors and companies to get things figured out and back on a stable track. This would include a ‘limit-up/limit-down’ clause where the market would be halted if securities drop or rise above a certain threshold. Experts are saying that the market should calm down once the Federal Reserve raises interest rates. An increase in interest rates would benefit those so-called thoroughbred stocks due to the sense of surety that investors attribute to them. The market beast may be wild right now, but it won’t stay that way forever. Starting this fourth quarter and looking towards the end of the year, keep an eye open for the market to be tamed.