Good Hospitals Exist
On VA hospitals, a reader says: “You can find plenty of dissatisfaction with the VA, but overall, its users are more satisfied than are users of regular hospitals. I’m not sure what that tells us.”
One thing it tells us is don’t generalize. There are good VA locations, and bad. Great people, and staffers who checked out years ago.
Another reader: “I have been depending on the VA for several years now and find the care extremely caring and of very high quality.”
A third reader: “The VA hospital in Houston, TX is a shining light for others to emulate.”
Clearly, the government can do it right. In the end, however, location by location, it comes down to people.
Who shows up and does their job? Who has compassion and expertise? Who puts the patient’s care and comfort first?
The government can write a manual. The government can wave its wand and implement procedure.
What the government can’t do is look in someone’s eyes and see how to address their pain.
That’s on us. You want to do something for America today? Thank a nurse.
Your Rundown for Monday, July 29, 2019:
Two High Conviction Predictions
How this works today is simple. Your editor’s going to give you two ideas.
Each idea comes with a chart and a few brief points of context.
Come Dec 31 of this year, your editor’s reasonably confident both ideas will have played out according to our thesis.
IDEA ONE: On December 31, Tesla Inc. (NSADAQ: TSLA) will be substantially lower than this morning’s $228 a share.
Barron’s yesterday said, besides whiffing on earnings, Tesla’s facing expiration of federal tax credits, increased competition, and the departure of a co-founder.
Tesla CTO JB Straubel stepped down last week to take an advisory role. That’s generally a soft first step toward a complete and total exit.
Tough sledding on sales, regulatory pressure, and decreasing industry uniqueness. Houston, we have a problem.
Dec 31 of this year, Tesla trades for less (maybe a lot less) than this morning’s $228.
And don’t even get us started on big picture “Musk Risk.” Tweeting about his rockets is great. But an ounce of pure focus on his part could give a pound of progress.
IDEA TWO: On December 31, Netflix, Inc. (NASDAQ: NFLX) will be substantially higher than this morning’s $329 a share.
See that recent dip in the chart above? Overblown market reaction to soft subscriber growth. Back home, we call that a buying opportunity.
The facts: Netflix is spending billions right now building a global marketing and content network that could fundamentally threaten the existence of major movie studios in the next decade.
The Financial Times last week had analysis on AT&T losing “more subscribers than expected” because of the continued rise of cord-cutting.
Before NBC and Disney get their act together on streaming, that cord-cutting money flow is going to Netflix.
By the time other streaming platforms are operational, it’ll be too late.
Netflix has the money to spend, the long-range plan ($3 a month streaming in India, for example) and the loyalty of millions.
Losing Friends back to NBC, for example, is a feature of the future, not a bug.
Dec 31 of this year, Netflix trades for more (maybe a lot more) than this morning’s $329.
Let’s take a look at the market this morning…
Market Rundown for Monday, July 29, 2019
S&P 500 futures are up 1.50 at 3,026.
Oil up a few pennies this morning at $56.28.
Gold’s up $0.30 at $1,419.
Bitcoin: $9,497. So much excitement here.
Bonus note: Fed rate cut this week? A CUT!
Chatter here at the office says the upside of a cut is already priced into stocks.
Now what if there’s no cut? Do the markets go haywire? Yes. They will.
Takeaway: Money’s still cheap. About to get cheaper. Are you seeking out opportunities to (smartly) use leverage to your advantage?
The countdown is on to 2:00 p.m. Eastern on Wednesday.
The biggest, messiest, most amazing monetary experiment in human history continues!
Have a great day. More tomorrow.
For the Rundown,