So has the national debt, and how many times has the FED panicked since then? Too many to count. At some point, something will break and they won't be able to fix. I just hope people don't get caught off guard.This is exactly what people were saying 10 years ago and yet the market has tripled since then.
That's what the naysayers have been saying since 2009. And they missed the best rally ever.So has the national debt, and how many times has the FED panicked since then? Too many to count. At some point, something will break and they won't be able to fix. I just hope people don't get caught off guard.
Munster, Ives, Huberty, & Cramer are ALL "AAPL Cheerleaders" masquerading as so-called Pro Stock Analysts !
Those who write for MR should know that !
There are three good / legit ones:
● Toni Sacconaghi
● Jeffrey Kavaal
● Dan Niles
You're absolutely correct, but I could argue that some would like to invest in a healthy economy because the odds of something catastrophic happening are much less than in an economy that needs the FED to step-in at every downturn. Eventually, something that can go wrong will go wrong. Just look at how relentless the March sell-off was. What's to say it can't happen again, and stay down this time? Very dangerous stuff if on the wrong side.That's what the naysayers have been saying since 2009. And they missed the best rally ever.
In 2009, the fed started doing QE (prior to that the only tool was interest rates).
In 2020, the fed has started buying corporate and municipal debt.
Remaining bullets include yield curve targeting, negative interest rates, and buying stocks outright. Between those three, I think we have a few decades of runway.
Without fed support, stocks go to zero in no time. But the fed cannot afford to not support stocks because pension funds will turn into a mess as will the rest of the financial system.
They better sell and put it in something more safe, before things start crashing down. The Fed cannot keep pumping big money into an economy the coronavirus has shut down. The longer this goes, the worse it is going to be for us (well, everyone).Great for employees at Apple with stock options.
It also is great bargaining power to hire new talent and lure others away from competing tech companies.
Like I mentioned, fed has many remaining bullets in their arsenal and they will not let the market drop. (Including but not limited to buying stocks outright.)You're absolutely correct, but I could argue that some would like to invest in a healthy economy because the odds of something catastrophic happening are much less than in an economy that needs the FED to step-in at every downturn. Eventually, something that can go wrong will go wrong. Just look at how relentless the March sell-off was. What's to say it can't happen again, and stay down this time? Very dangerous stuff if on the wrong side.
Thus the pent up demand. I’ve been itching to buy a new phone for a couple of years now, but Apple hasn’t offered what I yet. Apparently I’m not alone in that sentiment.... and the company still offers (more or less) a similar product lineup after 5 years.
ABSOLUTELY. Look at Overstock.com’s stock price when COVID hit! I bought some as a joke way back but NOW it’s real money.Jim Cramer mentioned the other day that the reason the top tech companies are skyrocketing during this pandemic is that they’re simply in a better position while smaller companies are struggling. Have to work from home? Buy a new MacBook. Stores are closed? Buy everything on Amazon. Stuck at home? Subscribe to Netflix. It’s demand + serendipity. It shouldn’t and probably won’t hold - I mean I doubt every TSLA shareholder thinks it’s priced correctly right now.
Apple has added $440 billion to its market cap over the last month, which is more than the current market cap of 493 companies in the S&P 500.
I like Apple products, but this won't end well. Top-heavy S&P 500 is just like the dot-com bubble. The rest of the companies need to participate in the growth, unless they want the whole US to work for just 5 companies.
Nope, we're talking valuations, and Apple will still be worth the same % in the S&P 500 before and after the stock split. The DOW does get impacted in that Apple stock moves will affect it less than before.Doesn't the weighting get readjusted after the upcoming split?
Nope, we're talking valuations, and Apple will still be worth the same % in the S&P 500 before and after the stock split. The DOW does get impacted in that Apple stock moves will affect it less than before.
Basically most indexes are calculated using market cap of companies, so a simple way to think of each company's contribution to the index is:Makes sense.
I thought I read somewhere that the split may cause some selling - maybe index funds or mutual funds?
Or perhaps I'm misinformed...
Not really, it's not any different from being paid in USD. In fact you're more free to trade AAPL stock and options if you don't work there.Great for employees at Apple with stock options.
It also is great bargaining power to hire new talent and lure others away from competing tech companies.
I suppose there are people who care about not having 5G.The dreaded “super cycle” phrase ugh. I get there were a lot of people who wanted a bigger iPhone but how many really care about 5G?
It does have some effect because it makes trading more accessible. Options are priced in units of 100 shares and most brokerages, while they now allow one to buy a fractional share, only allow selling whole shares.There are clearly people who disagree, otherwise it'd already be up the 27%. Broadcasted investing advice isn't very useful. Funny how right now, half the investing articles I scroll past hype up stock splits. They don't matter.
The split matters, but not the timing of it. I'm just going to assume every company will split their stock periodically to make sure it doesn't get insanely coarse.It does have some effect because it makes trading more accessible. Options are priced in units of 100 shares and most brokerages, while they now allow one to buy a fractional share, only allow selling whole shares.
Only example I can think of is BRKA.The split matters, but not the timing of it. I'm just going to assume every company will split their stock periodically to make sure it doesn't get insanely coarse.
Not as a consumer products/services company.Today's market price is a better indicator than any projection.
And of course the key weasel word is "could" A lot of things "could" happen.
Apple has a lot of work ahead of them to deliver the earnings growth implied in a 38 PE ratio, as is.
Not as a consumer products/services company.
A 35X multiple is totally reasonable for Apple.
You want to talk multiple issues, start with TSLA, AMZN, NFLX, and many others.
Clorox trades at over 30X.
Did you miss the massive bond offering?I love Apple and I was a shareholder until this month, but I had to get out of the stock. Nothing has happened that justifies a 100% gain.