Premarket: Apple is green

apple premarket green 8-21From wsj.com’s “U.S. Stock Futures Point to Tepid Weekly Gains for S&P 500” posted early Friday:

U.S. stock futures wavered Friday, indicating that the S&P 500 index may end the week with muted gains as trading volumes remain thin during the peak summer vacation period…

Investors continued to try to reconcile signals that the economic recovery may be uneven with expectations of further stimulus from governments and central banks, which might push more cheap money into financial markets. With government bonds in many developed countries offering yields that are below expected inflation levels, investors in recent months have been flooding into risky asset classes including stocks in a search for higher returns.

“More so than ever before, equity markets probably are not the best reflection of real economic conditions in the U.S.,” said Derek Halpenny, head of research for global markets in the European region at MUFG Bank. “The market’s convinced that the Fed will do more if required, and therefore the risk of not being long equities is higher than not being in it. That helps to keep the market supported.”

My take: The sun’s not up and Apple is already in record territory.

12 Comments

  1. Romeo A Esparrago Jr said:
    The sun will come out
    AAPL
    Bet your bottom dollar
    That AAPL
    There’ll be sun!

    AAPL!
    AAPL!
    I love you!
    AAPL!
    You’re only this day away.

    – apologies to “Annie”

    1
    August 21, 2020
  2. Jerry Doyle said:
    Apple

    “…You Are My Sunshine
    My only sunshine
    You make me happy
    When skies are grey
    You’ll never know, dear
    How much I love you
    Please don’t take my sunshine away

    I’ll always love you
    And be there for you
    I’ll protect you from harm’s way
    ‘Cause I adore you
    You’re my dream come true
    You’re my beautiful sunshine”

    Little did the country singer who wrote and sung this song know that one day he would be elected twice as governor of his state serving two four year terms and that the song would become the state’s song. It’s my Apple song 🙂

    1
    August 21, 2020
    • Romeo A Esparrago Jr said:
      Love it, Jerry.
      Love AAPL because the sun always rises each time night retires.

      1
      August 21, 2020
  3. David Emery said:
    Up almost $15 at 10:47 this morning. P/E is 37, valuation is $2.09T At what point do you-all think Apple becomes over-valued? Near term, I suspect we’re at that point. It’s not because Apple doesn’t deserve a P/E of 35, as much as the rate of change in P/E is likely unsustainable in the short term.

    But hey, we’re more than $100 over my “very optimistic” prediction of $376 in the April Fools contest, so what do I know?? 🙂

    The really interesting thing to consider is the likelihood that increasing number of Apple shares are being bought and held, rather than actively traded. That includes not just Berkshire, but also various ETF/index funds.

    0
    August 21, 2020
    • Bart Yee said:
      @David I don’t know the % increase in new retail and young investors, but I’ll propose that a significant % of them will be buy and hold long term (>1 year), but there will be quite a few owning or trading shares as part of new-found knowledge (but perhaps limited understanding and experience) in stock market trading, not investing. Many will feel like its easy money to get in and get out with short term gains, others will learn from dips how their risk exposure, emotions, and short vs. long term thinking evolves.

      Lots of internal and external event risks still loom in view over the next 6-9 months offset by Apple’s own product, hardware, software planning and execution. I’m still betting on Apple itself.

      0
      August 21, 2020
  4. Michael Goldfeder said:
    Apple will be overvalued when it receives a PE of 222 like Tesla. I’m enjoying this August ride. 26 Million shorts are still looking to cover.

    1
    August 21, 2020
    • David Emery said:
      Are there any restrictions on those options? Is it possible for Shorts to be looking to cover -more shares than are actually available-?

      0
      August 21, 2020
  5. Mordechai Beizer said:
    Short squeeze? Or maybe some sovereign fund decided that they just needed to own Apple.

    1
    August 21, 2020
  6. John Konopka said:
    Amazing run up today. I wonder what is driving it? Where will AAPL plateau?

    0
    August 21, 2020
  7. Kirk DeBernardi said:
    Geaux longs.

    Patience pays.

    1
    August 21, 2020
  8. Steven Philips said:
    Could it be called an Epic run-up? 🙂
    In your face, Epic.

    1
    August 21, 2020

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