From the Wall Street Journal’s “Stock Futures Edge Up Ahead of Big Tech Earnings” posted early Monday:
U.S. stock futures drifted higher Tuesday ahead of earnings from more blue-chip companies and the start of the Federal Reserve’s two-day policy meeting…
A strong start to earnings season among U.S. companies and indications that the economy is rebounding have helped to lift stocks to a series of all-time highs. Still, some investors are cautious, pointing to risks stemming from elevated valuations, the potential for a jump in inflation and the raging epidemic in India.
“We’ve got a big week of tech earnings where valuations are probably a bit more stretched than in other areas,” said Stuart Rumble, investment director at Fidelity International.
Tech stocks have climbed in recent weeks, pushing the Nasdaq Composite Index to a record high on Monday for the first time since February. Mr. Rumble said he favors shares of banks and energy companies, economically-sensitive sectors that stand to benefit when coronavirus restrictions lift.
My take: Apple’s fiscal Q2 earnings drop tomorrow after the markets close. If Apple’s going to move ahead of the report, it’s running out of time.
The way herds protect themselves is to “circle the wagons”, with the bulls on the outside. The Apple “herd” used to be weak, and easily stampeded over the cliff. But no longer: The “bulls” (long term investors) have grown in number, and continue to do so. A few “yearlings” can still be panicked, but no longer nearly enough to move the herd.
It’s a marvelous sight, seeing the vast security Apple shareholders have been given take hold.
What’s truly amazing is that Apple pulled this off almost invisibly to the market. Only a few of us tumbled to their long term plan.
People hate being wrong, to the point sometimes when they literally start throwing good money after bad, or even going completely bonkers.
We’ve been seeing a lot of that last lately….