A reader shares his take on our reader’s opinion yesterday:
“Your respondent who says that the U.S. is the ‘least racist country on earth’ is almost certainly Caucasian. I would expect his experience to be different [otherwise]…
“The U.S. might not be the most racist country but that’s miles from saying it’s where it could be.
Indeed. Or where it should be…
“As for Fed independence, given Trump’s erratic nature and near-zero knowledge of economics, I think that independence is a good thing for the moment.”
And we had a chorus of readers who said forget the Fed…
“Personally, I think the Fed should be abolished. It’s overblown the value of our money by 98% last I read…. A dollar in 1913 has the buying power of about $0.02 today.
“The reason the Fed was set up has never been achieved, and has usually been the reason some [economic] cycles get prolonged for the worse.
“It is the antithesis to freedom, free markets, capitalism, etc.
“Many other things from 1913 should be taken back, too… like the IRS and another big change — going from constitutional law to precedents (but I think that was a little later).”
Your Rundown for Tuesday, July 9, 2019:
“Cisco plans to acquire Acacia Communications [ACIA] for $70 per share in cash in a $2.6 billion deal on a fully diluted basis,” says CNBC.
“The acquisition of Acacia will allow us to build on the strength of our switching, routing and optical networking portfolio to address our customers’ most demanding requirements,” says David Goeckeler who oversees Cisco’s network and security division.
On the news yesterday, shares of ACIA rocketed almost 40% while Cisco shares dropped about 1%.
Cisco’s been wheeling and dealing recently: “Last year, Cisco announced plans in August to acquire cloud-based cybersecurity firm Duo Security for $2.35 billion in cash and stock.
“In December, Cisco said it planned to acquire semiconductor company Luxtera for $660 million in cash and assumed equity.”
So is Cisco a solid buy? The Nasdaq-listed stock — one of the few tech survivors of the dot-com era — has gained an eye-opening 30% year-to-date. Analysts expect more where that came from over the next 12 months.
Market Rundown for Tues. July 9, 2019
S&P 500 futures are down 10 points to 2,968.75.
Oil is up 44 cents to $58.10 for a barrel of WTI.
Gold is down $5.10 to $1,394.90 per ounce.
Bitcoin’s up $103.01 to $12,397.41.
Have a good day. We’ll catch up tomorrow.
For the Rundown,