Investment Insights

Latest Investment Insight - 04/11/14

A Macro View – Trouble

Trouble, trouble, toil and trouble. So it wasn’t quite as dire as Macbeth but it was indeed a troubling week for equities. Thursday’s rout of the Nasdaq index, and the concomitant slide in biotech and technology names, was especially severe, with the overall market posting one of its...


The economic backdrop in the first quarter was muddled, with extraordinarily severe winter weather throughout much of the country adversely impacting economic reports into March. Early in the quarter the uninspiring data, combined with concerns about emerging economies, was enough to prompt a sell‐off in the stock market. Investor angst was already elevated due to the Federal Reserve’s (“Fed”) decision in the previous quarter to begin tapering its asset purchases.


Facebook (FB) recently offered $19 billion to acquire WhatsApp, a five year old company with 55 employees. Analysts have come down on both sides as to the value of this company. The Wall Street Journal noted that ConAgra, a company with 26,000 employees, can only claim a $12.27 billion market cap. A $19 billion transaction will create a huge amount of tax revenue for the federal and state (CA) governments.