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UBS: Janet Yellen's testimony was both dovish and hawkish

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Janet Yellen Portrait Illustration Hawk and Dove

On Tuesday, Janet Yellen spoke to lawmakers on Capitol Hill. 

In a note to clients following the report, UBS' economics team said it thought the testimony had a little bit of something for everybody.

UBS said that Yellen's phrasing on how the Fed will change its language ahead of rate hikes is both hawkish and dovish. 

UBS wrote:

[Yellen] also spoke at length about how the Fed will signal upcoming rate hikes: Before the FOMC begins considering an increase in the Federal funds rate, 'the Committee will change its forward guidance. However, a modification of the forward guidance should not be read as indicating that the Committee will necessarily increase the target rate in a couple of meetings.'

That phrasing is both dovish and hawkish. 

Here's how UBS breaks that down:

  • On the hawkish side, Yellen sounded eager to get rid of the "patient" language that had signalled at least a couple of FOMC meetings before a rate hike.
  • On the dovish side, Yellen bought some time for the FOMC — indicating that dropping patient means no time commitment to immediate rate hikes. 

And in sum, the firm thinks Yellen, "appears to believe that economic activity improving at a pace that seems consistent with dropping 'patient' and beginning rate hikes, but can't/won't/shouldn't commit to those rate hikes now."

Either way, the firm still expects the Fed will raise rates in June. 

SEE ALSO: The most important sentence from Yellen's testimony

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Ireland field against the UAE in Cricket World Cup clash

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Ireland's Paul Stirling (L) listens to captain William Porterfield during a training session ahead of their Cricket World Cup Pool B match against the UAE, at the Gabba in Brisbane, on February 24, 2015

Brisbane (Australia) (AFP) - Ireland captain William Porterfield won the toss and elected to field against the United Arab Emirates in a World Cup Pool B match in Brisbane on Wednesday.

Porterfield said he hopes his seamers could make the most of the initially humid conditions at the Gabba ground. 

Ireland beat the West Indies by four wickets in their opening pool fixture while the UAE, like Ireland a non-Test nation, gave Zimbabwe a scare before losing by four wickets in their first match of the tournament.

Both sides made one change apiece as they bolstered their seam attacks.

Ireland recalled Brisbane-born Alex Cusack in place of Andy McBrine while the UAE -- an amateur side -- called up left-arm fast-medium bowler Manjula Guruge, with off-spinner Nasir Aziz omitted.

 

Teams

Ireland: William Porterfield (capt), Paul Stirling, Ed Joyce, Niall O'Brien, Andrew Balbirnie, Gary Wilson (wkt), Kevin O'Brien, John Mooney, Alex Cusack, Max Sorensen, George Dockrell

UAE: Amjad Ali, Andri Berenger, Krishna Chandran, Khurram Khan, Swapnil Patel (wkt), Shaiman Anwar, Rohan Mustafa, Amjad Javed, Mohammad Naveed, Mohammad Tauqir(capt), Manjula Guruge

 

Umpires: Nigel Llong (ENG), Michael Gough (ENG)

TV umpire: Kumar Dharmasena (SRI)

Match referee: Ranjan Madugalle (SRI)

Weather: Cloudy, chance of showers. Maximum temperature 30 Celsius.

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Marijuana legalization takes effect in Alaska

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Alaska became the third American state to allow the recreational use of marijuana, following in the steps of Colorado and Washington state -- and soon to be joined by Oregon

Los Angeles (AFP) - Alaska became the third American state to allow the recreational use of marijuana, following in the steps of Colorado and Washington state -- and soon to be joined by Oregon.

The changes in the remote frontier state's law come after voters in November narrowly approved a ballot measure making it legal to smoke, grow and own pot, though the drug remains illegal under federal law.

From now on, people in Alaska aged 21 and up can legally possess up to one ounce (28 grams) of marijuana and grow up to six plants, according to a summary provided by the official Alaska state website.

Under the state's new law, private consumption will be legal but public consumption remains illegal.

However, Alaska still must pass rules governing the sale of marijuana, and for now adults are only allowed to "give" another adult up to an ounce of marijuana -- and up to six plants.

Governor Bill Walker this week introduced legislation to create a Marijuana Control Board that would regulate marijuana sales similar to how alcohol is controlled, "while protecting the health and safety of all Alaskans," according to a press release.

While marijuana remains illegal under federal law, 23 states have allowed it for medical use and many other states are considering legislation to legalize it.

According to a recent report by the ArcView market research group, 14 more US states will legalize recreational marijuana by 2020. 

Voters in November supported legalizing the drug in Oregon, where the new law is due to take effect July 1.

The nation's capital Washington DC has also voted to legalize pot but the US Congress, which has jurisdiction because DC is not a state, is trying to block the move.

Colorado's neighbors, Oklahoma and Nebraska, filed a lawsuit in the US Supreme Court in December protesting that the western state's legalization of marijuana was harming them.

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Texas man convicted of killing 'American Sniper' Chris Kyle

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**** DO NOT DELETE OR REMOVE - BREAKING NEWS LOGO ****

Washington (AFP) - A Texas man was convicted of killing the US Navy Seal whose story inspired blockbuster movie "American Sniper," according to court proceedings broadcast nationally. 

Eddie Ray Routh, 27, was immediately sentenced to life in prison without the possibility of parole for the killings of famed sniper Chris Kyle and his friend Chad Littlefield at a Texas shooting range in February 2013.

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Investors should always remember that the stock market can wipe you out

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max drawdown

It may sound obvious. But when you invest in stocks, you're at risk of getting wiped out.

That really is the single most important risk to investors.

Even when you think you're well-diversified, you could see the value of your investments quickly plunge or perhaps slowly bleed 90% of its value over years as the Greek stock market did during the eurozone crisis.

Citi's Jonathan Stubbs addresses this in a recent research note about asset allocation. He included a chart highlighting some of the ugliest maximum drawdowns of in the global stock market.

"Figure 45 shows various markets and industries which have suffered severe losses in relatively short order in recent decades, e.g., the UK (1972-74), the Nasdaq (2000-03), Greece (2008-12) and Mining (2008-09)," he writes.

"Hence, buyer beware."

Because many of these stocks are of companies that don't go bankrupt, the losses are just paper losses that you don't realize until you sell. If you have a long investment time horizon, you might think it wise to wait for the value to come back.

topixHowever, an investor must be willing to be extraordinarily patient if he hopes to recoup his losses.

"It can sometimes take many years for investors to make their money back after suffering big losses," Stubbs writes. "For example, US equities only made it back to the peak 1929 total return levels in 1945, more than 15 years after the Great Crash. Kenji Abe, Citi’s Japanese strategist, highlights that Japanese equities are still a long way short of end-1989 peak levels."

These are all things investors need to consider very carefully before they commit their life savings to the stock market.

SEE ALSO: This Crazy Chart Perfectly Illustrates Why You Should Never Expect 'Average' Returns

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NOW WATCH: Nationwide's Super Bowl commercial about dead children is about corporate profits ... in a way that we can all appreciate

The new euro banknotes feature a disturbing Greek myth (EUR)

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europaAmid Greece's approval from the European Commission on its proposed reform measures to extend its bailout program, the ECB released new banknotes named after the Greek mythology figure "Europa"— which the continent is obviously named after.

bull europa.In a speech on Tuesday, ECB President Mario Draghi said, "The inclusion of the mythological figure Europa, who gave her name to our continent, shows how Europe draws on its shared history."

Ironically, the mythical story of Europa is as scandalous as the sovereign European debt crisis.

As the tale goesEuropa was a Phoenician woman who was unwillingly abducted, sexually abused, and impregnated by Zeus who disguised himself as a bull. 

While Europa does not function as an official symbol of the EU, modern Europe still references the story near its government buildings. 

Here is a better look at the new banknotes which will enter into circulation in November:

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 As an added security feature, a hologram of Europa appears on a silvery stripe on the right of the bill.

euro gif

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Scientists are beginning to understand why we settle for less than perfect relationships

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Couple on Date

Dating is hard.

Once you finally find someone you're pretty compatible with, you'll might just throw in the towel and settle into a long-term relationship.

It turns out that humans may be programmed to do this — or at least, this approach is the savviest move for the survival of the human species.

Settling for someone we're happy with, even though there might be a better match out there somewhere, could be a learned behavior that's been passed down for generations, recent research suggests.

From an evolutionary standpoint, settling for Mr. or Ms. Right Now is a better strategy than waiting around for Mr. or Ms. Right. It's far less risky.

Researchers from Michigan State University figured this out by creating a computer model that simulated the risk-taking behavior of thousands of generations of digital organisms. Each digital organism was programmed to make decisions in a way similar to humans. Each organism in the simulation had to take one high-stakes gamble that mimicked real life-altering decisions, like choosing a mate.

Organisms in the simulation only evolved to take fewer risks when they were faced with a rare, once-in-a-lifetime decision that came with a potentially huge payoff.

"If the stakes are sufficiently high, people prefer the safe option,"the researchers write in in their paper. "They are therefore risk sensitive (risk averse)."

If organisms in the simulation were faced with lots of little decisions with small payoffs (like betting $50 on the outcome of a sports game), they did not evolve to take fewer risks.

The researchers also discovered that the simulated organisms were more likely to play it safe and settle on the first available mate when living in small groups. Populations with less than 1,000 members, or groups with less than 150 people were much more likely to avoid taking risks. Smaller populations meant fewer resources and fewer mate choices, so the simulated organisms were more likely to settle for the first available mate.

Many of our ancient ancestors lived in small groups with less than 150 people. That means they were much more likely to settle for Mr. or Ms. Right Now rather than Mr. or Ms. Perfect.

This kind of play it safe behavior evolved because our ancestors had a lot more at stake than we do now. They spent most of their time searching for food and shelter, and their primary goal was to pass on their genes to the next generation. They learned to take the safe road and choose the first available mate to guarantee they could successfully carry on their lineage.

"[Our ancestors] could either choose to mate with the first, potentially inferior, companion and risk inferior offspring, or they could wait for Mr. or Ms. Perfect to come around,” Chris Adami, one of the authors on the new paper, said in a statement. “If they chose to wait, they risked never mating."

Even though circumstances are very different now, we could still be genetically programmed to settle.

"This behavior [avoiding risks] will still give your genes a higher probability to move to the future, which is evolution's goal," Adami said. "Your goal today may not be the same."

So even though we don't live in such small groups anymore, and passing on our genes may not be our number one priority anymore, the behavior may have stuck with us.

Of course not everyone is equally likely to risk holding out for the perfect match. Some of us are naturally more gutsy than others. And there are many other factors that influence how likely we are to take a risk, like age, individual circumstances and how much value we personally give each outcome. A simulation can't possibly capture all this nuance, and it's a simulation, not a time machine that can explain exactly how we evolved or what's in our genes (versus our culture and our environment).

But while some admire the most daring among us, the ones who refuse to settle, being risk-averse has its benefits — especially for the species as a whole.

"There will always be some agents that are extremely risk-seeking," the researchers write. "Such agents can do extraordinarily well by chance and persist, but their genes are ultimately destined for extinction."

SEE ALSO: Scientists say this one behavior is the 'kiss of death' for a relationship

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NOW WATCH: Research Reveals Why Men Cheat, And It's Not What You Think

Porn stars have started selling 10-second videos on Snapchat using a new payment feature

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stripper pole dancer

Porn stars have begun selling 10-second porn videos on Snapchat using the app's new payment feature, Snapcash.

The feature, which launched in November, allows users to send each other money instantly within the app using payments platform Square. 

Strippers and porn stars have taken advantage of the feature to discretely distribute adult content to users for a small fee. 

Nick Bilton at the New York Times reports:

Some transactions are as inexpensive as $1 to $5 for a few personalized photos. The prices can reach double digits for personalized sex shows. One brunette on Snapchat this week, most likely in her 20s, wore nothing more than skimpy underwear and offered to send pictures personalized for a person’s proclivities for $5. Men offer similar products at comparable prices.

Snapchat does not support or condone this use of the app. Most of Snapchats core users are teenagers or young adults, and posting pornography clearly violates the company's community guidelines“Don’t use Snapchat for any illegal shenanigans and if you’re under 18 or are Snapping with someone who might be: keep your clothes on!” the company recently posted. 

Bilton reports that within a week of adding 30 Snapchat accounts that promised to share porn pictures, 28 had been deleted.

"But... while sexting is no longer the main use on Snapchat," Bilton says, "it’s ludicrous to think that an app that allows you to send videos and photos that automatically disappear won’t be used to also transmit nude images." 

SEE ALSO: How one man's stolen iPhone made him an internet celebrity in China

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NOW WATCH: This guy went from homeless to making $25,000 per Vine


BuzzFeed just launched its second app — and it's like a Tinder for pictures of people's adorable pets

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buzzfeed appBuzzFeed has launched its second-ever app called Cute or Not, which lets you swipe through pictures of people's adorable pets.

The concept for the app is pretty simple: You swipe right if you like a picture of a cute pet, and left if you don't.

You can also upload pictures of your own pets, share your favorite pets on social media from the app, and earn badges as you keep playing.

You can also have your pet discovered and featured on BuzzFeed's website. Cute or Not, which won't have advertising, lets you vote on the cutest animals every day, and the top pets wind up on BuzzFeed.

BuzzFeed actually launched a conceptual version of Cute or Not in 2012 on the animals vertical of its website, so the app starts with the idea of a cute pet-centric game and takes it one step further by putting it on your phone. 

Cute or Not is BuzzFeed's first venture into apps outside of the main BuzzFeed app. And it's pretty on-brand with the viral side of BuzzFeed's content.buzzfeed app

Cute or Not is just the beginning of BuzzFeed's app rollout: This year, the company plans to release more apps in news and video. BuzzFeed has been beefing up both the product and editorial sides of its mobile app team. In October, BuzzFeed hired Financial Times' Stacy-Marie Ishmael to spearhead the editorial side of BuzzFeed News' app.

Cute or Not is an iPhone-only app, and you can download it here.

SEE ALSO: 2 dozen millennials explain why they're obsessed with Snapchat and how they use it

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Morgan Stanley to pay $2.6 bn to settle mortgage bond probe

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Morgan Stanley said Wednesday it had reached a preliminary agreement with the Justice Department to pay .6 billion to settle a probe into its marketing of mortgage-backed securities

New York (AFP) - Morgan Stanley said Wednesday it had reached a preliminary agreement with the Justice Department to pay $2.6 billion to settle a probe into its marketing of mortgage-backed securities.

Morgan Stanley trimmed its 2014 earnings from continuing operations by $1.35 per share due to the settlement, it said in a securities filing.

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A breakdown of the 5,000 Airbnb listings in San Francisco

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san francisco painted ladies

It's no secret that San Francisco housing is pricey, but a San Francisco Chronicle report sheds light on one factor that could be limiting housing supply: Airbnb rentals.

There are nearly 5,000 Airbnb rentals in the city, according to the Chronicle's report.

Renters are increasingly listing whole properties rather than extra rooms. Of San Francisco's 5,000 rentals, nearly 3,000 are entire houses and apartments, meaning that nobody else is living there.

Most of these listings probably would not have been long-term rentals anyway. The article notes that two-thirds of the listings had only a few reviews, suggesting that owners were using Airbnb for its intended purpose — to rent out their place when they weren't there.

But about 300 listings had more than 50 reviews, implying heavy usage.

The Chronicle also discovered that 513 of Airbnb's San Francisco hosts control multiple properties. 

However, the report did not find widespread abuse of Airbnb listings being used like hotels, unlike a similar study in New York did last year.

San Francisco has sought to regulate Airbnb like other area hotels. Last week the company paid the city "tens of millions" in owed hotel taxes. 

Before San Francisco passed the so-called "Airbnb law,"hosts were being evicted for violating the city's ban on short-term housing.

The Chronicle report has lots of other information, like which neighborhoods have the most expensive rentals. Read it here>>

SEE ALSO: Airbnb just paid tens of millions in hotel back taxes to San Francisco

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Incredible Vine shows an icy blue sunset on Mars

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NASA's Mars Exploration Rover Opportunity has been exploring the Red Planet for more than a decade, and just last year set a new record for traveling farther than any other off-world rover in history.

The rover has driven more than 25 miles on the surface of Mars and during its travels it has taken countless selfies and panoramas, but perhaps the most stunning images in its collection are of this blue Martian sunset, which NASA has compiled into this stunning movie, shown in the Vine below.

 

Opportunity has been exploring a region near Mars' equator, where an average temperature on a summer day can reach up to 70 degrees Fahrenheit. Not bad for a planet more than 140 million miles from the sun. However, without any clouds and only a thin atmosphere to help insulate the planet, after the sun sets, Mars temperatures readily drop to minus 100 degrees Fahrenheit.

And the blue sun in the stunning sunset above is a chilling reminder of the cold temperatures that will follow. The reason that Mars' sky appears red during the day and ignites with a brilliant blue during sunset is because of the red dust drifting through the thin atmosphere.

"The blue color comes from the way Mars' dust scatters light. The blue light is scattered less, and so it stays near the sun in the sky, while red and green are all over the sky," said Mark Lemmon, an associate professor of planetary sciences at Texas A&M University, in a university state mtn. "On Earth, blue light is scattered all over by gas molecules, but there are not enough of these on Mars, which has less than 1 percent of Earth's atmosphere, to accomplish this."

Check out this 50-second video of the Martian sunset:

CHECK OUT: The closest images ever taken of the sun show just how powerful it really is

SEE ALSO: The physics of Mario World show the game has a fundamental flaw

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NOW WATCH: Scientists are dumbfounded by a mysterious cloud on Mars

These are the hardest things to get used to when living in space, according to astronauts

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astronaut nasa spacewalk

Above a door on a platform standing 200 feet in the air that connects to the NASA space shuttle that ferries astronauts to the International Space Station (ISS), there's a sign that holds some serious significance for astronauts. It reads: "Last bathroom on Earth."

Living on the $1 billion space station that floats 260 miles above Earth is clearly a once-in-a-lifetime experience, but it takes a lot of getting used to.

Astronaut Ron Garan, who spent 6 months on board the ISS in 2011, wrote a book called "The Orbital Perspective" describing the time he spent living in space and how the experience changed his outlook on life. But in the seconds before his first launch, Garan caught himself wondering what he was getting himself into.

According to Garan's book, and the experiences of other astronauts, here are some of the hardest things to get used to when living in space:

1. Weightlessness

After taking advantage of the last bathroom on Earth, Garan blasted into space for the first time ever.

Unfortunately his first few hours in space were full of nausea. Astronauts train extensively for zero-g, but training for a few hours is very different than living in it 24/7.

Garan described the initial moments of weightlessness as pleasant, but it didn't take long for the nausea to kick in. Garan said it was as if his body was saying "'Hey, zero-g isn't suppose to last this long. Something must be wrong.'"

By the end of the first day his body had adjusted enough for the nausea to go away.

But dealing with zero-g on a day to day basis is an adjustment too. In June 2014, astronaut Reid Wiseman chronicled his first experiences in the weightless environment on Twitter:

"Still adjusting to zero g. Just flipped a bag upside down to dump out its contents. #doesntworkhere."

2. Sleeping

You can't actually lay your head down to sleep in space, so it makes sense that it's a challenge to get some solid shut eye.

The first night Garan spent in zero-g, he said "We staked out spots on the floor, walls and ceiling, attached our sleeping bags, and called it a night."

But there was a problem. What are you suppose to do with your head? You can't lay it down on a pillow, it just drifts there awkwardly, Garan said.

astronaut sleeping, sleeping in spaceIt took several weeks before the muscles in his neck adjusted to the bizarre sleeping position and before he could finally get a decent night's sleep.

Canadian astronaut Chris Hadfield also recently gave a description of life in space and the trouble with sleeping. One strange thing about living on the ISS is that the cycles of day and night are different. The station orbits the Earth about every 90 minutes, so every 45 minutes astronauts see a sunrise or a sunset. Hadfield says they still turn out the station lights before sleeping.

"We shut off most lights at bedtime — it feels right to do it," Hadfield said.

3. Keeping track of time

In space you don't keep track of the days of the week. Instead, you keep track of flight days (FD). The first day that Garan stepped on board the ISS was referred to as FD1, the day after that FD2, and so on.

American astronauts Barry Wilmore and Terry Virts who are currently living on board the ISS said that on New Year's Eve they counted down to midnight and rang in the New Year 16 different times. That's because the space station passed over a part of Earth during midnight 16 different times that night as it orbited the planet at about 17,400 miles per hour.

4. Dealing with body fluids

In space, your nose doesn't run and you can't cry. Tears will still form, but they don't fall. Instead, they congeal into sticky balls, Hadfield said.

Like the ominous "Last bathroom on Earth" sign suggests, using the bathroom in space is an ordeal. When liquid or solid waste comes out of the body in space, it has to get sucked into the toilet for fear it would escape and float around the chamber. Urine gets purified into drinking water. Poop gets collected onto an unmanned space ship that jettisons from the space station and burns up as it returns to Earth. So yes, that shooting star may have been burning poop.

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There are no showers since all the water would end up floating around the station in clumps and destroying the equipment that's all over the station walls. Instead, astronauts take sponge baths.

5. The view

There's a windowed dome on the ISS that many astronauts have said is their favorite spot on the station.

Cupola international space station It's called the Cupola, and the view from this window is unparalleled. Looking down at the Earth astronauts can watch breathtaking aurora displays, lightning, and cities sparkling at night.

nasa space aurora australis

This view from the ISS completely changed Garan's outlook on life, and turned him into an activist after he returned to Earth.

"Seeing Earth from this vantage point gave me a unique perspective — something I've come to call the orbital perspective," Garan writes. "Part of this is the realization that we are all traveling together on the planet and that if we all looked at the world from that perspective we would see that nothing is impossible."

SEE ALSO: Pizza Hut once delivered to the International Space Station

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The personality types of all 50 states

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We've all heard the stereotype of the friendly Midwesterner, or the neurotic New Yorker. They're stereotypes, yes, but it turns out there may be some truth to them.

Personality and career assessment site Truity surveyed more than 12,000 residents in all 50 states and D.C. to find out if where you grew up has any bearing on your personality. Truity ranked the states based on the Big Five dimensions of personality: engaging with the world, getting along with others, responding to stress, using your mind, and organizing your life.

Truity found that states like Nevada, home to Sin City Las Vegas, is the most extroverted state in the US, and that the Dakotas were the "friendly conservative" states in the country. Not surprising. But the most neurotic state, the survey found, isn't New York — it's South Dakota; and the friendliest state of the bunch is Montana. No Midwestern states fell in the top five there.

Take a look at Truity's infographic below to see the results in full.

State personalities infographic, Truity

SEE ALSO: The best careers for your personality type

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The West Coast port strike will squeeze the trade deficit

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shipping, california

Shipping companies and a powerful dock workers' union in West Coast ports reached a tentative deal last Friday after a nine-month slowdown.

In a note Tuesday, Goldman's Kris Dawsey wrote that although an agreement has been reached, shipments slowed in January, and likely February. The US international trade balance for January, out March 6, may send the trade deficit to its lowest level in a year.

"The case for a narrower trade deficit in January was already strong, in our view, given the suspicious jump in real petroleum imports in December and the continued drop in petroleum import prices through January," Dawsey wrote. 

"Adding in the effect of port disruptions, our preliminary forecast for January is a large $8.6bn improvement inthe nominal trade deficit to -$38bn."

Dawsey continued: "However, any 'benefit' from the smaller trade deficit will probably begin to reverse by the end of March, by which point substantial progress should have been made in processing through the backlog of ships waiting to unload at West Coast ports."

The trade deficit unexpectedly widened by 17% to $46.6 billion in December, from $39.8 billion in November, and compared to a $38 billion forecast. That was the biggest deficit since November 2012.

Dawsey wrote that the slowdown could reduce first quarter GDP by two-tenths of a percentage point, although "the estimated effect is highly uncertain at this point in the quarter."

Meanwhile, Deutsche Bank forecast last week that the port slowdown could shave up to 1% off Q1 GDP.

Via Goldman, here's a chart that shows the fall in the value of imports that came through three of the largest US ports in January.

Screen Shot 2015 02 25 at 6.28.44 PM

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30 years ago, Warren Buffett gave away the secret to investing and correctly predicted no one would listen (DIA, SPX, SPY, QQQ, TLT, IWM, BRKA, BRKB)

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In May 1984, Warren Buffett laid out everything you need to know about his investing philosophy.

In a speech at Columbia Business School, later adapted into an essay, Buffett introduced what he called, "The Superinvestors of Graham-and-Doddsville."

Buffett writes:

"The common intellectual theme of the investors from Graham-and-Doddsville is this: they search for discrepancies between the value of a business and the price of small pieces of that business in that market."

And that's pretty much it. Buffett doesn't think about buying a stock; he thinks about buying a business. 

benjamin ben grahamThe name "Graham-and-Doddsville" comes from Benjamin Graham — whom Buffett studied under at Columbia — and Dave Dodd, with whom Graham literally wrote the book on security analysis.

In Buffett's essay, he asks readers to consider a group of investors who outperformed the S&P 500 year in and year out.

"In this group of successful investors that I want to consider," Buffett writes, "there has been a common intellectual patriarch, Ben Graham ... They have gone to different places and bought and sold different stocks and companies, yet they have a combined record that simply can't be explained by random chance."

Buffett explains that the investors of Graham-and-Doddsville don't care when they buy stocks, or worry about a stock's beta or the "covariance in returns among securities." He says these investors are businessmen buying pieces of businesses, not traders buying stocks

And the strategy seems to be working out OK: On Thursday, Class A shares of Buffett's Berkshire Hathaway eclipsed $200,000 per share for the first time, and $1,000 invested with Buffett in 1984 would've been worth $155,301. 

And since 1969, the book value of Berkshire Hathaway — which Buffett acquired in 1964 — has beaten the S&P 500 43 out of 44 years on a five-year rolling basis. Said more simply, the relative value of Berkshire Hathaway shares have been worth more than the S&P 500 collectively every year but one. 

Not to mention that Buffett's personal wealth is estimated by Forbes to be more than $66 billion.

In July, we featured a chapter from Cullen Roche's new book, "Pragmatic Capitalism," which debunked the myth that "you too" can be like Buffett.

You can't, of course. But Roche's point isn't that Buffett's ideas about investing aren't sound, just misunderstood.

Many think Buffett was a simple "buy and hold" stock investor, but his investing is about way more than that — or way less, depending on how you look at it. 

Buffett concludes his essay by writing that some may wonder why he is giving away this basic investment philosophy of a number of investors who have outperformed the market.

Isn't he just giving away the secret?

"I can only tell you that the secret has been out for 50 years," Buffett writes, "...yet I have seen no trend toward value investing in the 35 years I've practiced it. There seems to be some perverse human characteristic that likes to make easy things difficult. The academic world, if anything, has actually backed away from the teaching of value investing over the last 30 years. It's likely to stay that way. Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace, and those who read their Graham & Dodd will continue to prosper."

Indeed, all of the research continues to show that the vast majority of professional and retail investors are underperforming.

The whole essay is embedded below.

 

 

SEE ALSO: 17 Facts About Warren Buffett And His Wealth That Will Blow Your Mind

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The $9 billion reason why Salesforce CEO Marc Benioff is so confident (CRM)

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Salesforce.com Marc Benioff

Salesforce's stock went crazy in after-hours trading the company reported its year-end earnings. As we write this, the stock is up 11% to a new all-time high of $69.80.

Salesforce posted a good year, meeting analysts' high expectations exactly — it grew top-line revenue 32% to $5.37 billion and non-GAAP EPS to 14 cents.

But that's not what made investors so bullish.

CEO Marc Benioff promised that Salesforce would hit about $6.5 billion in revenue by the end of its 2016 fiscal year, while growing growing non-GAAP profits to $0.67 to $0.69 per share.

More importantly, he promised that $6 billion was just a speed bump on the way to $10 billion.

He promised that the 15-year-old Salesforce will be the fastest software company in history to hit $10 billion.

He didn't say exactly when the magic $10 billion year will happen, but he did point out the reason he knew it would, and soon: Salesforce already has $9 billion of revenue under contract right now.

It has deferred revenue of $3.32 billion on its books — that's money that has been billed to customers, but not yet collected. It also has another another $5.7 billion of unbilled revenue (not on its balance sheets) that it's counting on from long-term contracts.

All of that obviously won't be collected next year, or possibly even in the next two years. Most large enterprise software contracts are for at least three years, and 2015 was a standout year for signing million-to-billion deals.

Top sales guy Keith Block said on a conference call to analysts that the company signed "550 7- and 8-digit" deals 2014 fiscal year, 100 more than last year and not only are the number of the deals growing, but the average size of them.

Benioff emphasized:

This is the fastest software company to reach $5 billion and in 90 days, we're going to be on the phone with you talking about the fastest software company to reach $6 billion. And if you look at our deferred revenue of $9 billion of booked business on and off the balance sheet, you can just straight line out– my dream is crystal clear to be the first one in the cloud, and the fastest software company, to $10 billion.

SEE ALSO: The little-known nice guy who helped turn Salesforce into the most powerful tech company in San Francisco

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These tech companies stocked up on the most patents in 2014

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future technology

The number of patents a company files can show both how innovative and protected it is.

Some people in the tech industry have shied away from building up war chests full of patents. In a bold move last year, Elon Musk announced that Tesla would give away all of its patents for free. 

Tech companies are being pulled in two different directions — they stock up on patents or give them up in the name of "co-opetition."

Using IFI Claims, we took a look at the tech companies that filed the most U.S. patents in 2014. 

 

No. 21 Toyota: 1,502 patents. Just recently, Toyota gave away 5,600 of its hydrogen fuel cell patents, similar to what Tesla did. Included in the patents given away for free were patents for the 2016 Toyota Mirai, the company's first fuel cell vehicle.



No. 20 Samsung Display: 1,511 patents. And going strong, as people are saying that the upcoming Samsung Galaxy 6 will have a three-sided touch display interface.



No. 19 Foxconn: 1,537 patents. The Taiwanese electronic-maker known for making Apple's iPhones and Sony's PlayStations is making a push into high-end manufacturing — it recently patented a solar-power data center container that would benefit any company that runs large data centers.



See the rest of the story at Business Insider

Salesforce boss Marc Benioff just SLAMMED Oracle and SAP (CRM, ORCL, SAP)

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Marc Benioff Salesforce.com

On the back of a great a fiscal year and projections of more to come, Salesforce cofounder and CEO had some cocky things to say about his biggest rivals, Oracle and SAP.

He particularly slammed Oracle, his former employer, who has turned into his most heated competitor.

Wall Street analysts on the quarterly conference call were asking Benioff to defend his assertion that Salesforce has enough desirable products to grow into a $10 billion company and beyond, as he had just boldly promised.

"If you look at our competitors, and their work in this customer service [cloud software] area. No. 1: Oracle. They bought RightNow and they have their own Fusion Service product. They took Fusion and turned it into confusion. Oracle keeps saying they're growing more quickly than anyone else in the cloud. Well, that's very easy to do when you're starting at zero." he said, slamming the name of Oracle's home grown cloud computing products, called Oracle Fusion Applications.

The battle between Oracle and Salesforce is so heated, that after Oracle bought RightNow, a company that offered customer service apps through the cloud, Oracle even renamed it "Service Cloud."

That's exactly what Salesforce calls its customer-service cloud: Service Cloud.

Benioff boasted that Salesforce's version is doing a lot better. "And Service Cloud from Oracle, that's a great example. This is not a multi-billion business for Oracle like it is for us. They have not been able to execute," Benioff said.

Service Cloud has become Salesforce's second-biggest business, and brought in $1.32 billion of revenue in its last fiscal year, announced this week. 

Benioff also had some choice things to say about SAP, his original rival.

"And then move onto to SAP. They will come into customers and say, 'just use HANA.' But for what, and how? And unload the software into your company," Benioff said, referring to SAP's newfangled database that is so fast, it changes how companies can use SAP's software.

SAP has bet its soul on the success of HANA, with SAP's billionaire co-founder recently admitting, "If this doesn’t work, we’re dead."

Benioff continued, "The No. 1 thing about this customer service revolution and why [Salesforce's] Service Cloud is delivering phenomenal results is that the traditional keepers of customer service information for these customers, Oracle and SAP, have just not delivered. And we have.... They are delivering new versions when our customers want new vision. And that is where we are right now."

Benioff got his start at Oracle, becoming the youngest top executive there, a millionaire by age 25, working for Oracle cofounder and then-CEO Larry Ellison.

Ellison even originally invested in Salesforce.

The two were close friends until their companies began to compete more directly with one another. These days, they are more likely to poach each other's sales people and trash talk each other's companies than to publicly hang out together.

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Breaking Bad-ness: NY cherry factory hid drug op

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A New York factory that cranks out maraschino cherries gave up its sweetest secret when police raided on an unrelated environmental matter only to uncover a large-scale marijuana operation, before the owner promptly killed himself

New York (AFP) - It could almost be a scene out of hit television program "Breaking Bad."

A New York factory that cranks out maraschino cherries gave up its sweetest secret when police raided on an unrelated environmental matter only to uncover a large-scale marijuana operation, before the owner promptly killed himself.

Arthur Mondella, 57, owner of the family-run Dell's Maraschino Cherries in Brooklyn, calmly excused himself to police, headed to the restroom, and shot himself dead, local media reported.

Investigators were about to find marijuana being grown and sold from a basement cellar that was hidden behind a fake wall and shelves at the plant, one of the largest processors of maraschino cherries in the United States.

A faint smell alerted them to the marijuana, one news report said, while another said that they were acting on a tipoff that the warehouse was a front for drugs.

New York police confirmed Tuesday's incident but gave no additional details. 

However local tabloids reported that police seized 36 kilos (79 pounds) of pot and massive amounts of cash -- hundreds of thousands of dollars.

Several luxury cars were also recovered, including a Rolls-Royce, a Porsche and Harley-Davidson motorbike.

Before shooting himself once in the head, Mondella reportedly told his sister: "Take care of my kids." 

The company's website says it has been in operation for over 67 years.

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