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Don Bauder

Don Bauder is a Reader contributor. See staff page for published articles.

Broadcom makes another Qualcomm offer

MARKET DOESN'T TAKE BROADCOM'S NEW OFFER SERIOUSLY. OVERALL MARKET PLUNGES AROUND 4 PERCENT WHILE QUALCOMM DROPS 6.57 PERCENT DESPITE THE OFFER ON THE TABLE. Right from the outset, it appeared the market did not take the new Broadcom bid seriously. Early in trading, Qualcomm stock was down a bit and Broadcom's stock was up a bit. Normally, the bidder's stock is likely to go down and the target's stock is likely to go up. The overall market continued its plunge. The Dow Jones Industrial Average was down 1,175 points, or 4.6 percent today (February 5). Nasdaq was down 3.78 percent. Qualcomm's plunge was eve worse. The stock dropped 6.57 percent to $61.73 and kept falling in after-hours trading. The Dow has dropped 8 percent or 2,100 in the last six trading days. One big loser is President Trump, who foolishly kept boasting that stocks were rising because of his policies. In the past, savvy presidents have generally avoided taking credit for a rising market, knowing that markets go down, too. They knew that a lot of factors, particularly monetary policy, go into stock market performance. Actually, presidents normally do not take a major role in movement of the stock market. The rising economy, for which Trump takes credit, ironically may be a factor in the plunge of the stock market. Investors fear rising inflation and possible rising interest rates -- both of which would be negatives for the market. Best, Don Bauder
— February 5, 2018 2:03 p.m.

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