Today’s close of business marks the half way mark for November and a plethora of news including the Fed Chairman stating that he does not expect a major setback in equity markets is giving all markets encouragement on the economic front. From a political perspective however it is a different story with markets nervous about Hong Kong, the Middle East, the UK election and the potential Impeachment of POTUS. Yen and Swiss Franc initially led the way yesterday before falling back with the USD that natural safe haven strengthening later in the day as expectations of an early settlement of the US-China trade war receded with still no mention of a meeting between the two Presidents scheduled in December. GBP vulnerable to a setback and is considered fully priced with the results of the UK General Election due out 4 weeks today.
The over hyped virtual spin class equipment company is belatedly some would think, introducing other sports equipment at a more reasonable price-maybe. Currently their treadmill costs $4,000 which by any definition is steep, if not overpriced and the stationary bike costs $2,245. A new treadmill will be joined by a rowing machine. Like all these wonder stocks which burn through money, the race is on to sign up punters before the music stops. Meanwhile CEO John Foley is doubling down by announcing an expansionary investment strategy. Helmets recommended for all equipment.
Fashionistas among you will no doubt be celebrating Roberto’s 79th birthday today. Recently his fashion empire has fallen on hard times and filed for bankruptcy in March this year. Roberto Cavalli is known as an inventor, artist and fashion designer but some of you may recall that 15 years ago he came up with the idea of ladies underwear imprinted with the head of a Hindu Goddess. This turned out to be a bum idea and fulsome apologies were furnished to the Hindu community for printing these (presumably) big pants. However despite this, the bottom line was not seriously impacted with Roberto Cavalli worth a conservative $500 Million today. Fundamentally RC remains very very rich.
Ok I’ll stop now!
Discussion and Analysis by Humphrey Percy, Chairman and Founder