Apple surprised me with its upbeat earnings. It reports every part of its business is booming. Which shouldn’t have surprised. Wherever I go — in airports, on buses, on subways — everyone has something Apple. iPhones. iPads. Macbooks. Here’s yesterday on the subway — sharing their favorite music. Young love. Remember then?
Apple will hit record highs today. Apple is an important part of our portfolio — see right hand column.
I suspect that the roaring economy (reflected in today’s employment numbers) and the upcoming tax cuts should keep the stockmarket chugging along nicely for the rest of the year.
I have no idea, at this stage, how the new taxes might affect me personally. But I live in a high-tax state — New York — and I pay a lot of local real estate taxes. Killing their deductibility would materially hurt me. If it wil hurt you also, please lobby your congresspeople.
Here’s CNBC’s simple summary:
I tend think of how the tax changes would affect me if I were Donald Trump. Which suggests to me that local real estate tax deductions won’t go away. Irrespective, I’m still going to send a few letters to Washington.
The big news for me is the estate tax. First, they’re doubling the exemption and then getting rid of it altogether in six years. (Must be when Donald figures he’ll croak.)
Excluding the local taxes — state, city, county and local real estate taxes — it seems like the proposed new taxes (see chart above) will be a wash for me personally. But it’s early and Congress still faces oodles of futzing around.
I do like the drop in corporate taxes. That’ll boost corporate profits. Maybe we’ll see more share buybacks. They’re talking about a cheap holiday on corporations bringing back monies from overseas. Business Insider has a piece here in which it lists companies with the most money overseas, including Microsoft, Oracle, Amgen, Apple, Qualcomm and Cisco.
The New Yorker has a piece “Donald Trump (personally) Stands to Gain Millions from the Republican Tax Bill.” It’s worth reading. Click here.
I can’t see doing anything different at present because of these proposed tax cuts.
Useful stuff
+ I’ve been taking 24″ and 25″ wheelies onto planes and storing them in the overhead racks. No problem. These bigger bags carry lot more stuff. You can easily go for an entire week.
+ Lightweight flannel shirts are not non-iron. That means they aren’t stiff and soaked in terrible formaldehyde. Uniqlo blocked me buying some of their cheap shirts — until I used PayPal. I suspect the reason for the blocking was because I’d frozen my accounts at all five of the credit reporting agencies — though why that should affect my long-standing MasterCard, I have no idea.
+ If you run a business, send your bills by email and offer your customers a discount if they wire you money within five days. Saves oodles of precious collection time and horrible paperwork.
For your kids education
Last night Susan and I went to the 92nd Street Y and listened to a discussion between Neil deGrasse Tyson and Walter Isaacson, author of:
Isaacson has written 11 biography books including Steve Jobs, Ben Franklin, and Einstein.
He told us he likes to write about people who meld science and the arts and are curious about both. When asked by an audience member, what’s the lesson for the kids’ education, he answered: Make sure they take classes in science and art. Mathematics and music. Computer science and art design.
I love Isaacon’s biographies. Susan and I listen to them on long car trips.
My bank is dragging its feet
I’ll name my bank if it doesn’t get with the program. To wit:
+ I asked my bank for two factor authentication in order to log in. So far, no luck.
+ I asked for an outbound call verification on transfers bigger than $500. So far, no luck.
The reason for all this? Yesterday’s column, which I reprint because it’s very important:
I just saw the best Internet hacking I’ve ever seen.
A crook sent an email to a friend’s banker asking her to send a wire and FedEx a cashier’s check to an address in Beaumont, TX.
The format of the email was perfect. It was the exact format my friend emails his banker.
Fortunately, the banker called her client (my friend) seeking permission for the wire. My friend said “NO.”
And no money was sent. $20,000 plus saved.
How did it happen?
Someone hacked into my friend’s computer or another computer at his company with HisCompany.com email address.
But how? Here are the most common ways. Pay attention:
+ Some moron in his company opened an attachment to an incoming email.
+ Some moron went to a web site that was highlighted in an incoming email.
+ Some moron inserted a flashdrive into a USB port on his computer.
The result of all this idiocy is that a piece of software code got dumped onto the moron’s hard disk, from whence it flew to other computers at the company. The code’s main purpose was to copy emails to and from bankers and then send them secretly out to an address on the Internet — i.e. the hacker’s computer. Once there, the hacker can, at his leisure, study the emails for their format and style. When ready, the hacker can then send a “perfect” email request for a wire and a FedExed cashiers’ check to the banker.
OK. Harry, a crook is really going to go to all this trouble? Yes. Millions of dollars are stolen in precisely this way every year in the United States. Legitimate-looking emails to bankers are easily forged, especially if you have originals to copy from.
Will your company be hit? Yes. Perhaps not today. But definitely at some stage.
What can you do?
Let’s start at the beginning. There are two types of email:
+ Emails downloaded from your sender to your computer, using software on your computer. The most common method uses Microsoft Outlook, which is part of Microsoft Office.
+ Internet browser webmail. The classic is Google’s gmail. You use your browser to get your email. You use Google to open your email and deal with any nasties in it. This is the safest form of email.
What should you and everybody in your firm do?
+ Don’t open attachments to your emails.
+ Don’t go to web sites you get recommended to.
+ Use gmail.
+ Tell your banker NOT not to send your money out — by wire or FedEx — without first calling you on the phone and getting your OK.
If you do all the above, then you don’t need to run Norton or any of the other virus catchers. They all slow your computer down. Speed is an extra benefit.
Bitcoin — help me, please
Has anyone cashed out their bitcoin profits and tried to get the money in real American dollars?
Have you had any difficulties actually getting your hands on your dollars?
Favorite New Yorker cartoons this week
Harry Newton, who will shortly visit the most important art discovery ever —
It’s Leonardo da Vinci’s (1452-1519) painting of Salvator Mundi, painted circa 1500. Oil on walnut panel. This work will be offered as a special lot in the Post-War & Contemporary Art Evening Sale on November 15, 2017 at Christie’s in New York.
It will go for at least $100 million. That’s serious money.
You can read the fascinating story of this incredible painting on Christie’s site. Click here.
Please buy the painting for me for Christmas. Please. Pretty please.
Apple and Square are up today. Maybe I’ll buy the painting for myself? Yes and guess what will fly?
Hi Harry – while I have no sympathy for high-tax states, I think it is fundamentally wrong to tax a tax. Who would even consider it? I think that if you are paying more than 50% of your money in taxes that you are serving the Government rather than the Government serving you. So If I were king, I would put a cap on ALL federal taxes such that everything you pay to the federal Government – income tax, Social Security, Medicare, IRMA, whatever – would be capped at 40% in order to leave 10% for state tax, sales tax, real estate, etc. Then if you live in a high tax state that is your choice. I also think that inheritance tax with a high exclusion is not a bad idea but I suspect that anyone with that much money figures out a way to avoid it anyway – put the money into some sort of foundation that allows your heirs to live like kings without paying anything.which brings me to my next pet peeve – why do 501 c 3’s and similar organizations get off without paying tax? What is the point? why should PACs, churches, and charities not pay their “fair share”. If you want to balance the budget, that alone would do it.
After the Tax Cut takes effect…states like New York and California will have a field day taxing the hell out of all people and corporations in their states.
I am slowly getting out of real estate so not so concerned about real estate tax deductions…down to one rental condo and moving into one, selling our house to eliminate maintenance issues…going into 80s for wife and myself we don’t need yard work, tiles blowing off our roof…water leaks etc. One water leak this summer, while we were spending the summer at our mountain place, cost me a jump of over $150. in one month.