Archive - Oct 18, 2011 - Blog entry

Just another coup, which will scalp us of many billions of dollars ...

So, where else are people going to put their money if not into US equities?

Yes...flying midgets!

I often get the feeling that traders and investors have put too great a trust in the monetary magic of the Federal Reserve.

AAPL is well positioned to potentially be a big enough long-term winner to justify the risks, even at its current stock price.  It has a seasoned, motivated management team; a potentially hot product feature to roll out throughout its major product line in Siri, with years of improvements in that technology ahead; unbeatable financial strength; loyal and even super-loyal users;  a focus on secular growth fields; and a low price-earnings ratio based on reasonable earnings estimates.  All this is being said despite being bearish on the stock market as a whole and bearish on the U. S. economy; but AAPL is about as far from the central control of the economy exerted by Washington as can be; it is highly international; and periods such as this recent period of high correlation between stocks have always given way to periods of differentiation.  Looking out to mid-decade or so, there is a significant chance that AAPL can achieve the bifecta of much higher earnings and a nicely higher P/E.  This might yield the world's first trillion dollar market cap company. 

Greece is not the issue here. The issue is that Europe as a whole is broke, facing massive unfunded liabilities, and running out of viable creditors to band-aid its banking crisis. We are literally talking about a banking system collapse over there.

Hey, that FDIC insured hedge fund took massive prop trading losses despite many billions of $ in tax payer aid. If only I were as skilled... For those who believe Goldman is out of the hot water cauldron, all I have to say is watch out for that brother with the spear!

All you need to read.

The Eurozone debt crisis gets worse. Bankers interfere. And the truth comes out: "The dreams to see the crisis ended by Monday couldn't be realized," says the German government.