Tag Archives: apple

Huawei P9 Imitates Apple: ‘New Dog With Old iPhone Tricks’

Chinese Huawei’s P9 is a “new dog with old iPhone tricks,” beating Apple ( AAPL ) to the smooth-backed punch, but including the usual chip suspects — Broadcom ( AVGO ), NXP Semiconductors ( NXPI ), Skyworks Solutions ( SWKS ) and Texas Instruments ( TXN ). But the iFixit teardown of the P9 smartphone did little for Broadcom stock was down a fraction in late-afternoon trading Friday, while NXP and Skyworks were both up a fraction. Texas Instruments stock, however, was up 1% on the stock market today . The Huawei P9 looks familiar , iFixit wrote, wondering, “just how far did Huawei go to imitate, and perhaps surpass, the iPhone?” IFixit notes the Huawei P9 camera is embedded within the body — as opposed to the bump in the iPhone 6S. Apple suppliers fill the inside of the Huawei P9, but their functions can vary from the iPhone 6S. Samsung supplies both — but it has a flash-memory chip inside the P9 as opposed to a RAM (random access memory) offering within the 6S, says iFixit. Huawei tapped SK Hynix for its RAM. Apple used Toshiba for its 6S flash memory. Texas Instruments supplied a fast-charging chip for the Huawei P9 vs. a power-management chip for the Apple 6S. And Huawei’s audio codec by HiSilicon is mirrored by Cirrus Logic ‘s ( CRUS ) chip inside the Apple flagship. Broadcom provides two chips for Huawei as opposed to a single chip for Apple. NXP, a single chip for the P9 and two chips for the 6S. The Huawei phone has three Skyworks chips vs. two Skyworks power amplifiers within the iPhone 6S. Huawei’s and Apple’s flagship phones both scored a 7 out of 10 on iFixit’s scale of repairability.

Diversification: The Only Free Lunch On Wall Street

The value of long term asset diversification , sometimes known as “the only free lunch on Wall Street” is discussed in a recent MarketWatch article offering “Five Steps to Beating the Market.” “Stock investors typically regard ‘the market’ as essentially the Standard and Poor’s 500 Index of large U.S. growth stocks.” The article tracks and summarizes financial performance records since 1928 for large-cap blend the (S&P 500), large-cap value, small-cap blend, small-cap value stocks and a four-fund combination of these asset classes. In every summary, the four-fund combination produced a superior return to the S&P 500 alone. However, the price investors pay for higher performance is higher volatility. “For patient investors, those temporary losses are a relatively small price to pay for tripling the long-term return.” The following “five ways to beat the market” are drawn from the data the tables below. According to the article, investors should realize: Outcomes are not predictable at the outset. Longer time periods make more dependable returns. The correlation between levels of risk and expected return may be less clear with a diverse portfolio over long investment periods. “When you compare the worst 40-year periods, you find that two of three other asset classes (SCB and SCV) had not only higher average returns but also better worst-case returns.” A diversified portfolio has a higher probability of meeting or exceeding 10% long-term returns. “Two of the other three asset classes, plus the four fund combo, had no 40-year periods at all with returns less than 10%.” “Wall Street tries very hard to convince investors they can beat the market by hiring ‘the right manager’ to choose stocks,” but the article suggests that “beating the S&P 500 index doesn’t depend on a manager. It’s the asset classes that do that. Click to enlarge Click to enlarge

Will Volatility ETFs Rule In May?

The start of May has been tumultuous for the global stock market with volatility levels flaring up once again. The sluggish manufacturing numbers from China and U.S., a bout of softer-than-expected economic readings out of Europe and a weaker-than-expected April ADP jobs report in the U.S. have data cast a pall over the market all over again (read: Manufacturing Churns Out Slow Growth in US–ETFs in Focus ). This is especially true as the major U.S. benchmarks nosedived in last two days (as of May 4, 2016). The S&P 500 has reached the lowest level since April 11 . In fact, the ongoing earnings recession, tepid economic readings along with global growth worries have rattled the faith of investors. They have taken somber economic growth on the chin for long and sent the S&P 500 rallying as much as 15% from a February low. However, investors should note that signs of stability in the oil patch have done a lot to cool jittery investors’ nerves in this timeframe (read: MLP ETFs–Time to Invest on Oil Rebound or Too Risky? ). Now with growth worries back on the table, volatility levels have heightened and exchange-traded products designed to track the market volatility have received a shot in the arm. Volatility level is best represented by the CBOE Volatility Index (VIX). This fear gauge measures investors’ perception of the market’s risk and tends to rise during a downtrend or when investor panic starts to set in. As U.S. equities faltered, the volatility index climbed 9.3% in the past two trading days (as of May 4, 2016), suggesting that risks are rising and investors could definitely benefit from this trend. There are several ETF/ETN options available in the market that can provide some exposure to volatility. These products have proven themselves as short-time winners in chaotic times. Below we have highlighted short-term volatility products that will likely spring higher as long as growth issues continue to unsettle the global markets. As a caveat, investors should note that these products are meant for short-term trading: Regular Volatility ETFs A popular ETN option providing exposure to volatility, the iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA: VXX ) . The ETN focuses on the S&P 500 VIX Short-Term Futures Index Total Return. The index gives exposure to a daily rolling long position in the first and second month VIX futures contracts and replicates ‘ market participants’ views of the future direction of the VIX index at the time of expiration of the VIX futures contracts comprising the Index’. There are other products like the ProShares VIX Short-Term Futures ETF (NYSEARCA: VIXY ) and the VelocityShares Daily Long VIX Short-Term ETN (NASDAQ: VIIX ) . Leveraged Volatility ETFs Investors seeking to earn exorbitant gains in a very short time frame could tap leveraged volatility ETFs. Currently, there are two options available in this category – the ProShares Ultra VIX Short-Term Futures ETF (NYSEARCA: UVXY ) and the VelocityShares Daily 2x VIX Short Term ETN (NASDAQ: TVIX ) . Both products track the S&P 500 VIX Short-Term Futures Index. Link to the original post on Zacks.com