Weekend roundup: Musk’s ‘funding secured’ | Buffet’s market warning | A new trade war
MarketWatch rounds up 10 of its most interesting topics over the past week.
1. After Musk’s big tweet
Tesla TSLA, +1.15% CEO Elon Musk said in a Twitter posting on Tuesday that he was considering taking the electric auto manufacturer private, with “funding secured” at $420 a share. That would be a 23% premium to Monday’s closing price or a total of $72 billion. Steve Goldstein considers whether Musk had violated any public disclosure rules.
Here’s what others had to say:
• The junk-bond market’s reading on Tesla going private
• Tesla analysts say they’re ‘as confused as anyone else’
• Elon Musk takes Tesla on a strange route to a potentially smart idea, yet again
• Tesla’s stock is the company’s greatest marketing tool — what happens when it goes away?
• Here’s the lesson Michael Dell can teach Elon Musk about taking a company private
• Investors are overlooking this incredibly valuable part of Tesla’s business
• How Tesla going private could affect demand for its electric cars
• Why it is almost impossible to steal a Tesla (and get away with it)
2. Warren Buffett believes in this market warning
Followers of the financial media are aware that someone is always warning of a sharp stock-market decline. But here’s a simple method of measuring the valuation of the entire U.S. stock market that Berkshire Hathaway BRK.A, -1.05% BRK.B, -1.22% CEO Warren Buffett has called “the best single measure” of whether stocks look like a steal or are overvalued. This “Buffett indicator” points to a long period of subpar returns.
More on Buffett:
• Warren Buffett’s growing cash pile and the big read-in for investors
• This is the airline Warren Buffett’s Berkshire Hathaway should buy, analyst says
Another fascinating warning: Behold the ‘scariest chart’ for the stock market
3. A domestic trade war may be brewing
Visa V, +0.09% and Mastercard MA, +0.04% have been incredible stock-market performers over the past five years. The driver for the credit-card processors’ performance has been the interchange fees they charge retailers, which typically range between 2% and 3% per transaction. But now retailers are beginning to resist.
4. A new way to get quick medical help
CVS Health Corp. CVS, +0.28% is among several companies offering quick consultations with doctors that which might save you time, money or both.
5. Reconsidering treatment for Alzheimer’s
New drug trials are leading doctors and medical researchers to question a decades approach to treating the degenerative brain disease.
6. You are probably paying too much for financial services
Here’s a way to estimate how much you are paying and some tips on how to pay less.
7. Is this a sign that the housing market turning?
U.S. home prices rose at the fastest pace in four years, according to CoreLogic. However, Redfin CEO Glenn Kelman sees signs of “slowing traffic growth in a weakening real-estate market.”
8. Post mortem for a failed merger
Rite Aid’s RAD, -4.55% shareholders pushed back against the company’s agreement to be acquired by Albertsons Cos., and the deal was canceled on Thursday. Here’s why the merger probably wasn’t a good idea to begin with.
9. The stock market has recovered from its early 2018 dip — here’s what may lie ahead
Mark Hulbert calls the correction in the U.S. stock market following the Jan. 26 top for the S&P 500 “entirely average” and looks at how the market typically behaves after a recovery.
• Growth or value stocks? These companies may provide the best of both
10. Here’s where a billionaire hedge-fund manager focuses his investments
Hint: it isn’t the U.S.
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Philip van Doorn
Philip van Doorn covers various investment and industry topics. He has previously worked as a senior analyst at TheStreet.com. He also has experience in community banking and as a credit analyst at the Federal Home Loan Bank of New York.
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