Today we are watching…
1. Siemens (#siemns)
Siemens wants something for nothing, and investors are buying it! In order for the industrial conglomerate to fund its future projects, it’s offered investors a bond that pays practically no interest whatsoever. Obliging investors are either genius, crazy, or both, lending their money to a company full in the knowledge that they’ll get nothing in return after inflation! However, don’t laugh too soon. These market players know that a Siemens bond won’t make them instantly rich, but it may lose them the least money. Recession fears plague the stock market, and that’s why Siemens can enjoy the cheapest loan in all-time market history!
2. Volkswagen (#vw)
Bugatti… In the mind of a petrolhead, that brand name is synonymous with power, speed, and engineering achievement. As part of the Volkswagen family, Bugatti hasn’t slowed down. Since its flagship ‘Veyron’ model, it’s smashed records with the ‘Chiron’ and the ‘Centodieci,’ of which only ten models have been made. Despite the $9 million price tag, investors shouldn’t fret about demand. The independently wealthy don’t agonize over recession indicators. VW shareholders can instead focus on how, these days, the company is reaping more value from the PR that so few Centodieci’s bring, than the revenue from selling them.