To the Editor: Regarding your cover story (“This Market Has Legs,” June 8) with the prominent illustration of the bull: The bull exudes anger, power, and a determination to charge ahead. Is there anything, any obstruction, that could possibly stop it? How about—a black swan?
Rob Suthe, Bethesda, Md.
To the Editor: During my 40-year...
To the Editor:
Regarding your cover story (“This Market Has Legs,” June 8) with the prominent illustration of the bull: The bull exudes anger, power, and a determination to charge ahead. Is there anything, any obstruction, that could possibly stop it? How about—a black swan?
Rob Suthe, Bethesda, Md.
To the Editor:
During my 40-year investment career, covers like the one in this week’s Barron’s have often occurred at market tops. I strongly agree with Louise Yamada’s recommendation of Treasury bills, as noted by Randall W. Forsyth in his Up & Down Wall Street column (“Bonds Are Entering a New Era. How to Play It,” June 9).
Bill Andrews, Whitehall, Pa.
To the Editor:
It isn’t every week that Barron’s contradicts itself in the same issue, albeit inadvertently. On page 14, we’re told that the market is headed higher. Fifteen pages later, Nicholas Jasinski writes that, for now, “the wall of worry the market has climbed is disappearing”—the hallmark of a top (“The Stock Market’s Wall of Worry Has Crumbled,” The Trader, June 9). The signs of complacency are everywhere, from the VIX to, for that matter, the cover of Barron’s.
Meanwhile, it’s rare that a bear market ends before the first Federal Reserve interest-rate cut and while the yield curve is badly inverted. The covers of Mad Magazine were graced by the visage of Alfred E. Neuman, who asked, “What, me worry?” I don’t know about Barron’s, but I’m worried.
Gene Sweet, Chicago
Crypto Speculation
To the Editor:
Lawyers will be the only ones laughing all the way to the bank—and perhaps investors in precious metals as an alternative store of value genuinely without a third party (“What’s Ahead for Bitcoin and Coinbase as the SEC Cracks Down on the Industry,” June 8). Bitcoin is the oldest and least well-structured token. There are now more than 23,000 crypto tokens. The exchanges are the third party and a pretty weak link in the ecosystem, albeit a well-capitalized one with real money. Tulips at least look nice. This is another speculation heading for the history books.
Cooper Peter, On Barrons.com
Apple’s Vision Pro
To the Editor:
I enjoyed the Tech Trader column with one issue—never sell Apple short on what its endgame is with this future technology (“The Vision Pro Headset Is Nice. But Apple Needs an AI Plan,” June 9).
A couple of use cases came to mind when having multiple screens floating in front of one with the ski mask on.
1) A chief information security officer looking at his information-technology security dashboard while enjoying a latte anywhere in world, drilling down into what is working on blocking the latest attacks.
2) Another killer app for Vision Pro could be a having a brokerage firm leveraging the cloud and offering a stock trader six or seven virtual screens with various tools, such as eight-21-50 day charting metrics up, fast trade windows open, portfolio positions, advance/decline metrics, SPY sectors going green/red and positive/negative, etc. I would easily spend the money to buy Vision Pro for these apps if they existed, since I would be reducing the cost of my on-premise server and screen infrastructure.
Larry Dannemiller, Houston
Trump vs. Biden
To the Editor:
Matt Peterson’s analysis of America’s mood strikes me as spot on, as far as it goes, and it’s true that the economy has often determined past elections (“Good Economic News Hasn’t Boosted Biden. Here’s Why,” Commentary, June 6).
But while former President Donald Trump has a fiercely loyal legion of supporters, there also are many Americans who fear his possible return to the White House, and if he is the Republican nominee, that very well could override any economic angst they’re feeling when casting their votes. I see the potential for another election in which normal political calculations don’t apply.
Don Wittenberger, Shoreline, Wash.
Merger Arb Funds
To the Editor:
Thank you for bringing merger arbitrage funds to the attention of your readers (“Regulators Have Cracked Down on Big Deals. Why Investors Might Try Some Merger Arb,” June 2). I have used these funds for over 30 years as a bond alternative for clients’ allocation to safe money to protect their assets. I don’t use them to maximize returns because I don’t think they compete with the S&P 500 index over long periods of time. I was quoted in your publication many years ago giving my opinion that the Merger Fund was as safe as U.S. Treasuries. For many years, the merger arbitrage funds outperformed bonds and Treasuries, which offered de minimis returns in a very low interest-rate environment. This has changed over the past year. With U.S. Treasury bills offering a guaranteed yield of greater than 4.5%, and the merger arbitrage funds down about 2%, the risk and reward has shifted.
The spreads on the mergers may have widened, offering potentially greater returns, but the regulatory challenges that Andrew Bary highlights increase the risk of the merger deals closing, while the guaranteed rate available from U.S. Treasury bills is relatively attractive. Over the past year, I have been reducing my exposure to these funds and purchasing Treasuries, but I expect that when the regulatory environment becomes more favorable, I will reverse course. In the meantime, the guaranteed 4%-plus rate is a great option.
Arthur M. Cohen, Northbrook, Ill.
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