That is not natural. Let is slide a bit, some profit taking and up we go again.
That was the slap in God's face. i suggested why God makes hurricanes, floods, etc...All he needs to make is one swift market crash (25% worth) overnight and he'll get his revenge. Ones who are heavily invested are the ones that decide everything.
That is way larger issue than Greece. Way too many companies have borrowed to buy back at record highs. Now they have to pay the debts back and rates for refinancing will be higher. Sort of like the 0% credit card. Got them on the hook. We are moving to a very low margin environment so I don't know how debt service will be done without a big crunch to cash flow.
This is not looking good but I have faith that FED will save us once again. Just watch.
I doubt it they need saving. Ones that need saving are Jewish bankers and they don't care much about Jesus.
Everyone has been conditioned in the past 8 years that any trade long if it starts losing will be saved by jawboning. One of these days that will prove to be a wrong conclusion.
Something tells me it may be tomorrow. Here is why. Despite the Greek turmoil and probably down open in Europe tomorrow FED's Dudley (just on Bloomberg) said that FED should hike in September give that the data continues to be strong. So even the FED doesn't want to see the market overheated. They won't cushion the fall.
No Black swan event is people are slowing down in Smartphone purchases or are switching to cheaper models. Margin drop continues as world gets saturated with offerings. Mobile phones to retain pricing of a calculator eventually.
AAPL has about 550BIL in equity resting on 1 product for 60% of its sales and 75% of profit.
AAPL's debt is growing quite large (although most is overseas) all sunk into buybacks at sky high prices.
In any case you must subtract debt from cash to get to the pure cash number.
I was short all along and picked the only freaking week to do a call spread betting on Greek bailout.
How unlucky is that.
I agree that FED won't hike rates. Market will do that for them. Why keep your money in 10 year bond for 2.5% when you can do that with selling covered calls in 1 week.
10 year should be at about 4.5%. Once that happens stocks will be about 40% lower.
Healthy economy without debt. They could actually cut taxes and economy would rebound.
FED should let it fall where it may. There is so much dependence on FED it is unbelievable. Whey don't they let investors bare some risk for the first time in 8 years.
Because many are conditioned and most likely stuck in the trade waiting for some sort of bailout by central bank jawboning. Reminds me of drug addicts, always need a fix.
China cut rates just before they published a report that many companies audited by state auditors reported fraudulent financials and fabricated revenues and earnings. I don't think 0.25 rate cut will prevent people from dumping stocks built on foundation of fraud with current PE of 89.
Only to pay interest to Bundesbank.