The stock markets are sliding down but this is not the end of the world. There ain`t no doubt; the bear is here! Yesterday Nasdaq tumbled -1,08%, while Apple plummeted -7,7% in after hour trading. Dow slid -0,3%.
This is how it probably will be in the stock market now. Up and down, or what we call a volatile market. That`s why it is so important to know about stock picking. How to pick the right stocks, and that`s why I wrote about it last week.
In my opinion; U.S stocks is not cheap, so it is important to know what to do before any decision is made. The European stocks is twice as cheap as the U.S stocks. How is it going with Apple?
Apple reports yesterday:
iphone sales is $32,5B (+6% vs 17% in FQ4).
ipad sales is $11,5B (+7% vs -13%).
Mac sales is $6,4B (+16% vs -15%).
iTunes/software/services revenue is 4,4B (+19%).
iPod sales is only $973M (-55%).
78% of Apple`s cash/investment balance ($159B) is offshore. The iPhone sales is up +40% in Japan. Sales in China is up 20%. Europe is flat, while Americas sales is only +1%. Tim Cook didn`t say much about buybacks in face of Carl Icahn`s ongoing campaign. $7,8B was returned via dividends/buybacks. Apple need to release something new now, and I am not talking about a bigger screen or a different color. I am talking about innovation. Come On Apple: “think different”.
FQ1 EPS: $14,50
Expects FQ2 revenue of $42 – $44B.
How is the inflation? It is rising, but it is difficult to see it. Some people expect inflation and some expect deflation. Both camps see increase in general prices like visible money and credit prices. Hyperinflation is expected, but deflation is probably the biggest problem in the future in the long run. I think Janet Yellen will push the QE-button if the deflation ghost is here. As you can see; despite the QE programs, the growth is so far very slow.
If the Fed starts its tapering, how will that affects the emerging markets? Half of the global GDP comes from the emerging markets, and that moves the other markets in the rest of the world.
It seems like money is on the way back to emerging markets as the Fed announces their tapering. Let`s wait for the FOMC statements later on this week.
Reports today: Core DurableGoods at 8:30am, S&P/CS Composite at 9:00am, CB Consumer Confidence at 10:00am.
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