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FINIMIZE'D FOR NOVEMBER 10th
 2:33 MIN READING TIME
Read over an espresso at Freemont Coffee Company, 459 N 36th St, Seattle, WA 98103, USA info

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"Work hard, have fun, make history."
Jeff Bezos is an American entrepreneur and investor. He is the founder and CEO of Amazon.com. info
Gold Fears Higher Interest Rates
What's going on here?
Gold is having a rough go of things lately: on Friday its price fell to a three month low and it’s now down 8% this year in US dollar terms (although it did rebound a little bit on Monday).

What does this mean?
The recent sell off is largely because investors are now expecting the US Federal Reserve to raise interest rates at its December meeting. A report on Friday saying that the US added many more jobs than expected has increased the likelihood of an interest rate rise. Gold is negatively affected by rising interest rates because gold itself does not pay any interest to its owner (unlike, say, a bond). So the “opportunity cost” of owning gold increases as the returns of other investments go up (and rising interest rates cause bond yields to rise). Also, rising interest rates increase the value of the US dollar, which causes gold to move down in price relative to the US dollar.
Why should I care?
1. The bigger picture: The market now thinks the Fed will raise interest rates in December. The exact expectation can actually be seen by something called the “implied Fed funds rate." It is saying that there is a 68% chance of an increase in December (it would be the first increase since 2007 – so it would be a big deal).

2. For the stocks: Many advisors still advocate owning some gold. The consensus opinion is that gold will continue to go down in price in the near term. But the overall theory is that gold as an investment provides a “hedge” against stocks, such that it offers investors some protection in the event of a stock sell off. Indeed, gold went up when stocks sold off in August and September. There’s no guarantee, but if stocks sell off again, the price of gold should, in theory, rally.
Do you have questions or comments on this subject? Join the discussion here (anonymously if you'd like!)
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A Strategic Move Behind The Curtains Of The Internet
What's going on here?
Do you know how your internet actually works? How you managed to download this email? It was largely thanks to companies like Ericsson and Cisco – and they agreed to a “strategic partnership” over the weekend so that they can keep up with your (a.k.a. the consumer’s) future demands.
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What does this mean?
Ericsson is one of the world’s biggest suppliers of wireless equipment. The 4G wireless broadband on your new iPhone? Ericsson has probably provided it to your cell phone carrier, e.g. AT&T or Vodafone.

Cisco makes the actual hardware that runs the internet, like that router sitting beside your TV (except it makes routers and other things that are A LOT more complicated than the gear found in your living room – these things run international networks not just your Netflix connection).

There is actually not much overlap between what the two companies do. By joining forces, they can market their combined strengths to their mutual customers (telecom companies like AT&T and Vodafone). They will also work together to develop new technologies, especially for the burgeoning Internet of Things.
Why should I care?
1. The bigger picture: This is not a merger. It’s a “strategic partnership.” Competitors Alcatel and Nokia did merge recently, creating exactly the sort of combined company that neither Ericsson nor Cisco wanted to compete against on their own. But strategic partnerships are often difficult to maintain as the two companies keep their independence and, therefore, inherently different interests.
2. For the stocks: A lot depends on the implementation of the “partnership.” Most analysts feel the deal makes strategic sense because the two companies have complementary products. But they are worried about the long-term feasibility of the partnership. Some argue that a merger (or Ericsson buying Cisco’s competitor Juniper) would have made more sense.
Do you have questions or comments on this subject? Join the discussion here (anonymously if you'd like!)
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TODAY WE HONOUR
Martin Luther (November 10, 1483 – February 18, 1546) wiki
was a German friar, priest, professor of theology, and a seminal figure in the Protestant Reformation.
"Faith is permitting ourselves to be seized by the things we do not see."
 
 
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