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Shervin Pishevar decided to take his Twitter followers by surprise one day by sending out 50 tweets, all numbered, within the span of 21 hours. In this time, he called out five monopolies in the United States: Apple, Alphabet, Amazon, Microsoft, and Facebook. These are the biggest, most powerful companies and the investor explains why we should be worried.
They’re Too Powerful
Shervin Pishevar explains that these five monopolies have too much power. There are more powerful than Ma Bell ever was, and that telephone companies still lives on in history as being a dangerous monopoly for the United States. Consider how much information Amazon, Facebook, and the other monopolies have on us. They have more data and more access to data than even sovereigns have.
They are growing in power, too. The government doesn’t want to take them down. Further, there are cities across the United States crying out to receive Amazon warehouses.
They Don’t Have Competitors
If you take a look, there are no competitors for any of the monopolies, not really. As Shervin Pishevar points out, the monopolies are buying up all of these startups before they have a chance to become competition. He refers to them as silent assassinations. Although startups are constantly entering the marketplace, they are bought before they have a chance to do anything exciting. Entrepreneurs make the mistake that they are getting a great deal because they are being paid for their innovation. However, they are handing their innovation to the enemy.
What will happen?
If the government doesn’t intervene to take the monopolies down soon, they will continue to grow in size. Shervin Pishevar identifies that it would be best for consumers if there is more competition. He makes the comparison to Ma Bell once again.
It’s possible that there may not be another impressive startup like Uber or Airbnb for at least 10 years unless these monopolies are taken down. Although Shervin Pishevar doesn’t have suggestions on how to take them down, he is identifying the problem so that more people are aware.
During 2017 the stock market in the United States had one of the best years that it had in a long time. The stock market was influenced by a variety of factors that included tax law regulation changes, improvements in jobs data, and great earnings from many different companies. While 2017 was a good year, 2018 has been far more volatile.
The start of 2018 was just as good as 2017. The Dow Jones Industrial Average increased to its highest point of all time by hitting 26,000 points. While January was great, the month of February has been far different. During February a few piece of negative information hit Wall Street and it sparked a panic sell. During the week of February 5-9, the US stock market had its two worst days on record ever.
While the stock market appeared to be in free fall during the first week of February, it now appears that the declines have stabilized and values are beginning to get back to where they were a couple of months ago (https://www.marketwatch.com/story/dow-on-pace-for-4th-win-in-a-row-as-market-braces-for-inflation-data-2018-02-14). Just a couple of days after the markets declined considerably, all of the major indices are back up several percent during the second week of February.
The increase in values in the US stock market is attributed to a range of different factors. One of the main reasons is that there have been very good earnings results released. Over the past few weeks many different US companies, including those in the tech, auto, and other industries have reported earnings that were far greater than estimates. This has helped to fuel optimism over future growth for many companies.
Another reason that people are buying back into the market is that it appears that the stock market drop could have provided a lot of value. Many notable companies, including some of the top tech firms in the world, saw that their stock values had declined by more than ten percent over just a couple of weeks. While this makes some people jittery, those that are looking for value found those stocks to be great target options.
While the stock market has increased in value, there is still plenty of concern over the future. There are several upcoming factors that could lead to a rise in volatility.
During 2017, the stock market in the United States saw one of the best years on record. Shortly after the election of Donald Trump, a variety of pro-American regulations were set forth that did great things for business. Throughout the year, continued regulation changes and an overall improvement in the economy sent stocks soaring. While this continued for the first month of 2018, February has gotten off to a terrible start.
During the week of February 5 through 9, the stock market had one of its worst days on record. Prior to the start of that week, there had never been a 1,000 point drop in the Down Jones Industrial Average. However, that week alone saw two days with a drop of that magnitude. The reason for the decline is still not completely clear. After receiving some less than ideal news when it came to jobs data and earnings results, the stock market started to drop. This triggered some panic selling and volatility hast peaked to its highest point in years.
After a devastating week on Wall Street and for investors across the world, it appears that the week of February 12 was off to a good start (https://www.cnbc.com/2018/02/12/us-stock-futures-dow-data-earnings-and-politics-on-the-agenda.html). While the major indices are still 5-10% off of their all-time highs reached just a few weeks ago, it appears that the big drops may be behind us. On Monday, February 12, the Dow Jones increased by more than 400 points.
While the increase in stock market value is a good thing for investors, and much better than another big decline, financial experts are concerned about another wild swing in stock values. Those that are close to the market and have seen a lot of different markets in the past believe that the stock values could continue to be volatile for the foreseeable future. This could include seeing a big drop again in the coming weeks before prices finally stabilize. However, people are not urged to exit the market entirely. Overall fundamentals in the market are still strong and a rebound is bound to be on the way.