Amidst a slew of earnings and economic reports this week, Twitter, of all sources, managed to dominate the headlines after a false tweet nearly derailed the markets. During the afternoon hours in Tuesday’s session, the Twitter account of the Associated Press was hacked, and a tweet claiming that there were two explosions in the White House and that Obama was injured sent the Dow Jones Industrial Average tumbling 145 points in a span of two minutes. Though markets managed to bounce back, the overwhelming knee-jerk reaction raised red flags concerning the impacts of social media, high frequency trading and the overall atmosphere of the financial market [see 10 Questions About ETFs You've Been Too Afraid To Ask].
Below, we outline seven insightful articles circulating around the financial space this week:
- What Can You Buy With Apple’s Cash? at Dividend.com
Tech-giant Apple (AAPL) reported earnings after the closing bell on Tuesday, announcing that it will begin paying a $10.60 annualized dividend. Though a 3% yield is quite enticing, Apple is still sitting on a $145 billion cash pile. If you ever wondered what that amount of money could buy you (for example, you could bailout Cyprus 11 times), check out this great visual article by Michael Flannelly.
- The Hyperinflation Bet Never Made Sense at The Armo Trader
Inflation has always been a cause for concern for investors, as it can have significant impacts on bottom line returns. In this article, Jerry Khachoyan makes his case for why he thinks the U.S. will never see the extreme form of inflation: hyperinflation.
- Living in a High Frequency World at The Minimalist Trader
It was a rather bizarre trading session on Tuesday, after a false tweet from the hacked Associate Press account managed to nearly derail the markets. In this article, Sean McLaughlin discusses his thoughts on the incident, and takes a closer look into the high frequency culture dominating today’s markets.
- Kass: On The Leading Edge at The Street
Though U.S. equities have continued to push into uncharted territory, there are still some corners of the market that have not kept up with the bullish momentum. In this piece, Doug Krass highlights the “Fab Five” stocks that have exhibited relative strength during 2013′s strong uptrend.
- Public Debt, Inflation and The Stock Market at CXO Advisory Group
In this insightful piece, Steve LeCompte discusses the relationship between the level of U.S. public debt, interest rates, GDP, inflation and the Dow Jones Industrial Average, highlighting the evolution of these metrics over time.
- Is It Time For A Cup Of Coffee? at Andrew Thrasher: Technical Analysis
Commodities investing can sometimes be a crap shoot as this asset class often exhibits volatile price swings on both fundamental and non-fundamental reasons. In this article, Andrew Thrasher gives us his technical analysis of coffee, which has declined significantly in recent years.
- Currencies For The Stock Investor at Sizemore Insights
Currencies is perhaps one of the most misunderstood corners of the market, as investors often struggle to wrap their heads around how to “price” a currency. In this article, Charles Sizemore makes his case for why investors may want to invest in currencies, and discusses why the asset class really does matter.
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Disclosure: No positions at time of writing.