Apple refuses to provide forward guidance off the back of weak iPhone sales, and, of course, all the uncertainty stemming from COVID-19. Yet, they order more iPhones, along with running a convincing PR campaign, to promote that fact, and pump the stock, of which, they are one of the largest buyers. Over the next 12 months, revenue is obviously going to disappoint vs the previous 12 months, so why wouldn't that have a negative impact on the company's valuation? Imo, it does, and it will.
Investors who pay $2 Trillion dollars for a company whose demand relies heavily on customers' appetite to shop, off the back of easy access to credit, should understand the sensitivity of Apple's business model to tighter monetary conditions. The 25 year growth farce (credit cycle) is finally coming to an end with the onset of the post March crash irrational exuberance. The FED and Government have nowhere else to hide. When rates rise, and the 10Y yield is back at 1.25%, let's see how much money flows into risk, particularly when $18 Trillion globally is happy to sit in bonds right now, and endure NIRP.
Rates will rise, folks, and bagholders beware - growth will get hit first, and the hardest of all. Trade accordingly.
Thanks for your time today guys. I thought it fitting that on the day SPY makes new all-time high's, to rant about how overvalued growth still is. If you enjoyed today's analysis, please hit the Like button, and Subscribe to our profile. The information and analysis shared in this post is not financial advice. Always conduct your own analysis and research.
Investors who pay $2 Trillion dollars for a company whose demand relies heavily on customers' appetite to shop, off the back of easy access to credit, should understand the sensitivity of Apple's business model to tighter monetary conditions. The 25 year growth farce (credit cycle) is finally coming to an end with the onset of the post March crash irrational exuberance. The FED and Government have nowhere else to hide. When rates rise, and the 10Y yield is back at 1.25%, let's see how much money flows into risk, particularly when $18 Trillion globally is happy to sit in bonds right now, and endure NIRP.
Rates will rise, folks, and bagholders beware - growth will get hit first, and the hardest of all. Trade accordingly.
Thanks for your time today guys. I thought it fitting that on the day SPY makes new all-time high's, to rant about how overvalued growth still is. If you enjoyed today's analysis, please hit the Like button, and Subscribe to our profile. The information and analysis shared in this post is not financial advice. Always conduct your own analysis and research.
