Maybe I’m the odd ball as I see Warren Buffett go out of his way to by into Apple stock at world record highs. Warren Buffett created his own bull market and the majority are falling into the same trap. What does Apple do with all this free money? They go out and blow it buying their own shares back at world record highs. It see it as a complete waste of money given to them by the share holders. Sooner or later Warren Buffett will have to take a rest, and when he does this Apple stock will crash! We now have another major AAPL stock peek and it has started to back off in the last few days. In the long run all asset classes are going to suffer a deflationary crash and Apple will not be exempt from this. You can pour over the fundamentals all you want, but fundamentals always tell us the wrong things at the extremes.
The Gold/Apple ratio speaks volumes if you know how to use it. A record expensive ratio has been at 7.29:1, this has now been blown out of the water and this morning this ratio stands at 5.48:1, which is the most expensive reading I have ever recorded with the Gold/Apple ratios.
We would have to get to 21.81:1 before it becomes cheap again. We would need a bit bigger decline so it has no more time to hit another new record top in 2018!