Posts by Henry Blodget
- Henry Blodget at Yahoo Finance6 days ago
I'm an Apple customer and shareholder. I watched parts of the live-stream of the launch yesterday — when it wasn't crapping out. I looked at pictures and videos of the new products. I read some early "takes" on the products.
So it's time to rush to judgment.
And here's my judgment — as a customer first, and then as a shareholder.
My judgment as an Apple customer...
THE iPHONE 6: Yay!
Apple has finally caught up with the rest of the market and launched a smartphone that isn't tiny. I've been a loyal iPhone user for 5 years, and I've been waiting for this particular upgrade for the past two. The faster processor, better battery, and better camera are also appealing to me. Great job, Apple.
THE iPHONE 6 PLUS: Yay!!
- Henry Blodget at Yahoo Finance28 days ago
The U.S. economy is still sputtering. Why is growth so slow and weak?
One reason is that average American consumers, who account for the vast majority of the spending in the economy, are still strapped.
The reason average American consumers are still strapped, meanwhile, is that America's companies and company owners — the small group of Americans who own and control America's corporations — are hogging a record percentage of the country's wealth for themselves.
In the past 5 years, American corporations have boosted their profits and share prices by cutting costs (firing people) and buying back stock. As a result, unemployment remains high. And wage growth for the Americans who are lucky enough to be working has been pathetic — the slowest since World War 2.
Meanwhile, America's corporations and their owners have never had it better. Corporate profits just hit another all-time high, both in absolute dollars and as a percent of the economy. And U.S. stocks are at record highs.
Even Scrooge would be appalled.
Many people seem confused by this juxtaposition. If corporations and shareholders are doing so well, why is the economy so crappy?
- Henry Blodget at Yahoo Finance1 mth ago
Ultimately, stock prices are determined by supply and demand. When more money is seeking fewer shares, stock prices go up. And vice versa.
So when you're trying to get a sense of what is driving stock prices, it's smart to look at the changing sources of supply and demand.
One big source of demand for stocks in recent years has come from companies buying back their own shares. These buybacks have not just provided extra demand — they have decreased the total supply of shares available. So the buybacks have shifted the supply-demand balance and helped drive stock prices higher.