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Re: The Fed, Snowflake, and Stocks

Posted: Mon Sep 21, 2020 7:32 am
by Robot Monster
garlandwhizzer wrote: Sun Sep 20, 2020 9:29 pm I do not believe that Warren has abandoned his value slant in favor of tech high flyers. Instead I believe he anticipated this price action on opening day. I suspect he views Snowflake very positively as a long term investment IF PURCHASED AT A 100% DISCOUNT TO MARKET PRICE. Whether he views it as a long term holding I don't know. He can sell his stake at any time now and make a killing. He's the same old guy, with a sharp eye out for unusual opportunities and not afraid of taking risk when he finds one.
It's not all about Buffett, is it?

See:
Warren Buffett's Lieutenants Are Increasingly Running Berkshire

and,

"In an interview with Yahoo! Finance Friday, Snowflake CEO Frank Slootman was asked about the Berkshire investment and what might have led the company to invest in Snowflake. Slootman had said that most of Snowflake's interactions had been with Todd Combs, one of Buffett's younger lieutenants."
Now We Know Who at Berkshire Invested in Snowflake, and Why

Re: The Fed, Snowflake, and Stocks

Posted: Mon Sep 21, 2020 9:18 am
by Robot Monster
Had not previously heard any worry lately from the Fed regarding bubbles, have you?
Kaplan was one of two dissenting voters at last week’s Federal Open Market Committee meeting, where policy makers took a more dovish tone...Kaplan said he would prefer to retain “greater policy-rate flexibility” in his dissent...Since markets were already expecting the Fed to keep rates low for an extended period, Kaplan said he’s not sure if there was a great additional benefit of firming up forward guidance at this point. He’s wary that the commitment will encourage further risk taking at a time when the stock market is near record highs, even amid a catastrophic pandemic. “My concern is about building up excess risk taking, which can create fragilities and other excesses in the system,” Kaplan said. “It could create issues for us to meet our goals. I felt that the costs were not worth the benefits.”
from Bloomberg article, "Fed’s Kaplan, Wary of Bubbles, Dissented to Preserve Flexibility"

Re: The Fed, Snowflake, and Stocks

Posted: Mon Sep 21, 2020 11:40 am
by Seasonal
Robot Monster wrote: Mon Sep 21, 2020 9:18 am Had not previously heard any worry lately from the Fed regarding bubbles, have you?
Kaplan was one of two dissenting voters at last week’s Federal Open Market Committee meeting, where policy makers took a more dovish tone...Kaplan said he would prefer to retain “greater policy-rate flexibility” in his dissent...Since markets were already expecting the Fed to keep rates low for an extended period, Kaplan said he’s not sure if there was a great additional benefit of firming up forward guidance at this point. He’s wary that the commitment will encourage further risk taking at a time when the stock market is near record highs, even amid a catastrophic pandemic. “My concern is about building up excess risk taking, which can create fragilities and other excesses in the system,” Kaplan said. “It could create issues for us to meet our goals. I felt that the costs were not worth the benefits.”
from Bloomberg article, "Fed’s Kaplan, Wary of Bubbles, Dissented to Preserve Flexibility"
It's not that unusual for someone to dissent on the grounds that the policy is too dovish. The statements for the majority are important for expectations, which is a large part of the mechanism by which the Fed operates. I wouldn't focus that much on a dissent, beyond whether the dissenter would have done more or less. The minutes of the meeting might provide additional information beyond the official statement and Powell's press conference (or not).

Re: The Fed, Snowflake, and Stocks

Posted: Mon Sep 21, 2020 12:28 pm
by mptness
Tingting1013 wrote: Wed Sep 16, 2020 9:06 pm
Dottie57 wrote: Wed Sep 16, 2020 8:35 pm What the heck is snowflake?
Data warehousing in the cloud
Snow forms when tiny ice crystals in clouds stick together to become snowflakes. If enough crystals stick together, they'll become heavy enough to fall to the ground. Is every snowflake unique? I think every snowflake eventually falls and every bubble eventually bursts. My weather predictions are mostly inaccurate though.