For years the most exceptional of corporate brand names, Apple Inc. (AAPL) is now the quintessential company of the current bull market, relying on the kindness of the bond market to fund an aggressive stock buyback. This maneuver is perfectly in sync with today’s financial-engineering fashion.
A year ago Apple stood astride the financial markets, attaining the highest market value ever as it topped $600 billion. The iJuggernaut’s fabulous profitability, stupendous share-price gains and cult-inspiring products nearly consumed all the capitalist oxygen in a world of muted economic growth, range-trapped stock indexes and plodding technological advances.
More than 90% of brokerage analysts were recommending the stock, it was the most heavily owned name by hedge funds and, at its $702 peak in September 2012, was up 70% for 2012 versus less than 15% for the other 499 stocks in the Standard & Poor’s 500 combined.
A well-known comeuppance
Then came the well-known comeuppance, with stifferRead More »from With Big Bond Sale, Apple No Longer ‘Thinks Different’