Stock Market – Look Out Below (January 3, 2019)!?!

Before everyone goes and labels me a stock market hater, just know that I’m rooting for equities to do well and have absolutely no interest in seeing the economy (and stocks) tanking. After all, I’m also rooting (I like rooting, apparently) hard for this whole electric vehicle (EV) revolution and would really like to see it arrive sooner rather than later in my lifetime. I mean, just living in polluted Manila only further hammers home the importance of EVs and the breath of fresh air they will offer major cities across the globe, at least in my own eyes.

However, the recent smackdown in Apple (AAPL) stock, after hours, is most worth highlighting… and discussing.

Because AAPL just so happens to be the most followed, popular, and adored stock on the planet, of course, if this stock happens to experience some calamity (wobble wobble), then ALL market participants will need to be on high alert… AAPL is a market bellwether and we all know damn well that if this boat starts to take on water then we are all screwed…

I mean, does there even exist a single passive ETF/fund out there that doesn’t have AAPL stock as one of its (core) holdings?!?

So, we’ll see how AAPL reacts as the year unfolds… Let’s see if it can find solid footing and stabilize, for all our sakes…

Anyway…

Absolutely, by no means do I think Apple’s days are numbered (the company is essentially too big to fail now), I just think it’s more a reflection on a shifting macro trend…  In my own eyes, the decline in AAPL is in a way like waving the white flag and the market signaling “out with the old” and “in with the new”, especially as it pertains to the fast-changing paradigm shift in technology.

From BBC.

These type of events always look way more obvious with the benefit of hindsight, but I mean, it really doesn’t take a rocket surgeon to realize that smartphones are now kinda tapped out in 2019…

I mean, just take for following…

Keep in mind, I have a rather twisted sense of humor, and I’m poking fun more than anything else… Please try to not get offended AAPL fanboys… and my old co-workers *waves* (I still got love for ya’ll). As for iPhones, man, I just really don’t know how AAPL is gonna keep growing revenue and keep up that insane profit margin per phone when there’s a plethora of cheap Chinese look-alikes on the market that are almost a carbon copy of the original, selling for, what, 1/10 the price of an iPhone?

These days, even i’m tempted to just go with the cheapest “knock off” iPhone wannabe, for my next smartphone upgrade…

But please, take a look at the following two charts…

Exhibit A.

Screen-Shot-2014-04-07-at-7.55.13-AM

Exhibit B.

One is dealing with a past phenomenon and the other is projecting the hyper-growth profile of tomorrow’s flavor of the week.

For speculators, it might interest you further to know that both of them are now trading at essentially 52 week lows…

Now, everyone’s got different: goals, risk tolerance, and all that jazz…

But I know which one of the two I would be much more inclined to research, study study study, and put a gamble on, moving forward…

 

As is typical, I like to go where the crowds ain’t.

 

Regardless, I do hope both options do well for investors/speculators and everyone makes good $$$ in 2019 (and beyond).

 

Fight On!

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