This morning Apple hit another price peak before it reversed. Any new record high could be the last record high that may take decades before it is ever achieved again. Warren Buffet is sitting on a big pile of cash, and that alone should be a warning that stock market investors should be building up cash positions. Just about every tech titan have massive cash positions, so they are already to buy low once the opportunity arises again. The peak seems to be $209.50 so far and Apple would have to crash to $190 to close off this huge gap. By any metric you want to use all the markets are in the biggest inflated stock market in history and when it gets serious in correcting, prices will head south.
Even the Warren Buffet indicator is flashing serious downside warnings as it shows extreme valuations. The Gold/Apple ratio also created a new record high at 5.84:1 this morning so. The lower the price of gold goes and Apple does not follow, then this Gold/Apple ratio will only get worse.
I’m sure you are reading about all the share buy back programs being implimented, with Apple being no exception. I think company initiated buyback programs rips off all those rich investors as it is a clear signal that they can waste their money buying their own shares back at world record highs. All their trying to do is manipulate their own stocks higher to appease rich investors. The amount of money big corporations spend to prop up their share price, Apple alone could have launched a mission to mars many times over, and even stop of on Titian for a little sidetrip. 🙂 Hey, I would love to see that Apple Logo on a big Falcon 9 heavy rocket.
When high tech companies start paying dividends, then this company is signaling that, “Hey we got so much money we don’t know what to do with our cash”! So they give cash away to investors, who do and have done absolutely “nothing” to enhance the company itself. Did investors work on the production line? No, they are leaches and are just along for the ride. If investors ride along with a trillion dollar company, then how much will they lose once Apple stock crashes by 70%?
Running with the bulls is dangerous, as it takes nothing to get trampled to death by the herd!
High inflated stock prices, ridiculous high real estate prices is not good for anyone escpecially for the younger generations. 2-3 years from now I’m sure we will have a new reality that no one expects today. Deflation is the real threat to investors and the Fed is fighting the very same inflation that they created in the first place.