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As Goes AAPL, So Goes The Wealth Of America's 0.1%
Given this morning's jubilant celebrations over the surge in household net worth - which as we noted earlier reflects the riuch getting richer (and implicitly the poor getting poorer) - we thought a quick look at who (or what) is responsible for this. It turns out that the correlation between AAPL and the stock market has never - ever - been higher.
h/t @ReaperCapital
In other words, as goes AAPL, so goes the wealth of America's 0.1%...
Charts: Bloomberg
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So how's that iwatch working out for them?
I'd bet not as bad as *you* think.
http://www.cnet.com/products/apple-watch/
That said, they need to come down in price. HTC is and will be coming on strong. Samsung, of course, too.
And no - personally I see no need for it.
But I never let what *I* see a need for blind me to what the mob might be into.
How many black kids from poor homes are going around with Beats by Dre headphones all of a sudden - tons of better headphones. The whole thing is the gimmick.
They're still selling lots of luxury cars and yachts, too.
There's no accounting for taste, Frodo.
Remember Newton's revelation when the Apple fell on his head. Maybe another epiphany will occur when APPL falls on the .1%'s collective head. (Humbly submitted as an owner of the stock. And no... I'm not of the .1%.)
Sour Grapes, Prickly Pear, Banana Skin.
correlation not being causation it is worth noting that while inflation figures have been cooked, most of that cash went into buybacks and otherwise into sovereign IOUs and the stock and bond market.
Everything is over-valued.
Here, AAPL's rough correlation to the market as a whole doesn't at all mean AAPL stock prices are the cause, or effect, of QE, or anything else, and you could certainly find other stocks that also so correlate.
Tylers know this.
But the tight correlation also likely suggests a very strong stock, one that would recover quickly after a downpour sell off.
As we saw just this morning.
"most of that cash went into buybacks" - by cash do you mean all the billions in bond issuance? Becuasefrom here looks like cash went nowhere ,exept for executive pay.
no, you're right, I'm conflating different things...
That was the Swiss central bank disposing of their holdings.
the wealthy aren't the ones buying all that overpriced chinese made crap. just sayin'.
Hence, Uncle Carl's infatuation with keeping AAPL on a "permanently high plateau."
Big deal, I already made a killing going long Leased Sofa Futures, its a new product offered by the CBOT. Only potential downfall is the decay rate on the 28% simulated leather trim.
A stripper said that exact same shit last night.
"decay rate on the 28% simulated leather trim. "
wtf?!
HELOCs are adjustable rate mortgages, or ARMs, tied to the prime rate, but they are much riskier than standard ARMs. Because rates adjust daily, changes in the market impact a HELOC very quickly. If the prime rate changes on April 30, the HELOC rate will change effective May 1. Don't be duped by the stability of the prime rate in recent years - it last changed on December 16, 2008. In 1980, it changed 38 times and ranged between 11.25 percent and 20 percent. Unlike standard ARMs HELOCs have no adjustment caps, and the maximum rate is a much higher, 18 percent in most states.
http://www.charlotteobserver.com/homes/article23741446.html
My financial buddies tell me we're about to finally see a serious housing correction, the so-called, "reversion to the mean."Time will tell since I've heard it all before.
fuck apple. i hate their overpriced electronic toys.