Fed's near free liquidity and Corporate Buybacks debt will eventually turn into diminishing stimulus when growth decreases; Apple's EBITDA shows negative growth rate and current price seem overvalued
Apple has been growing at the super-exponential rate since the crash of 2008, i'd like to take another opportunity to short this one
It is difficult to quantify a bubble, everything that goes either way will correct or fail eventually, we should always study risk learn to live with it and take many opportunities (safely)! and repeat
Don't relay on this price action, my entry and stops may vary in time
Aapl stock has gone really mad. On a day when the market is down, aapl still finishes in green at a record high. It seems to be levitating better that Houdini. What’s going to bring this stock down you wonder? We have crazy Gene Munster who is constantly touting appl has 50% more room to run it seems he is on daily at some major network or publication. This frenzy is either one unbelievable bubble or something is up that I’m not seeing. Anyone has any thoughts?
itburnz
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I think Apple is a great company but it is not a 1.5 Trillion company when it's growth decreases(i think any rational investor(buffet) considers that).
Ask yourself, Who is buying the apple stock?
I think the answer is mostly the general public and huge institutions, ETF's 401k's etc. they usually buy or increase their portfolio at late stage of the cycle without assessing risk or evaluating better value for growth companies(well, they don't need to, in terms of long term(life))
I don't have 30 years to wait for apple to be worth 50% more. my strategy is to learn risk and understand how the world works. look for high risk and extreme reward kind of opportunities
In short, long term Apple can be good. short case, this looks like a good opportunity to short while everyone is hooked in a finically instruments economy. study recessions, maybe you'll get a more thorough answer there (:
crus10
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@itburnz, thanks for the reply sir. I’m in with a short at $290 ish and am amazed it blew past $300 mark. Oh well. I’m gonna hang on because this is just ridiculous. Nothing goes up forever ... at least that’s what common sense says.
itburnz
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@crus10, should be okay, i would reduce risk if it gets past $321 in your case
My fib level is at around $315, most likely others have it somewhere at the same level