The Investor Advocate

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Facebook (FB) a bad investment? There’s a great deal of hate about Facebook’s stock, and I simply do not get it. Personally, I am not a enthusiast of using Facebook, but that’s not FB’s problem. I can’t stand how many people appear to won’t communicate using any method.

It formed another coating of peer pressure which makes each folks decide whether to conform or confront it–no room for anything in-between. That’s a mark of something that has developed market share, which is precisely the business design that developed from FB. I keep hearing that FB isn’t worth anything, but technology stocks aren’t “value” stocks–They’re “growth” stocks, and I have no idea anything with more growth potential than a communication device utilized by almost 1 billion people.

FB just got a lot of money, and they have intelligent enough management to know how to use that money–like buying their competition and companions to improve what they provide. Their business design is stronger than Google’s since they have actual user data. Google (G) must think like an insurance actuary–just guessing which “types of individuals” are “likely to type” in certain keywords.

Facebook has real data. I realize that people “Like” things for all sorts of reasons–discount or peer pressure–that do not relate with buying tendencies. However, they know what gender you are, in which location you’re centered, and where location you are seated as you’re using your computer. Facebook has grandparents engaged.

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They aren’t jumping to that “new” social media platform. Facebook is for a while here. Many people have a tendency to be socially motivated to remain on there. They’re not going anywhere. So targeted advertising there is the perfect model. Plus, they have A lot money. Do you consider that they’re going to go bankrupt anytime soon?

While some think this is the time to join global equities, their theory is merely based on mean reversion, and I would disregard their advice. Risks are increasing all over the world, deflation demons are awakening using their nap, and they’ll feature a vengeance over another two years back again.

You can take dangers in the stock market but be careful not to overstay your pleasant. These markets are extremely illusory, all seems fine until it isn’t. Keep that in mind the next time you read an article about the “longest bull market in history”. It’s all bull and it’s really bad for you! Below, St. Louis Fed President James Bullard joins CNBC’s Steve Liesman to go over the produce curve and the neutral fed money rate from the Fed’s Jackson Hole conference.