Apple’s results this week were absolutely dismal. Finally all the negatives that global market authority, Bert Dohmen, has warned about for the past 18 months are being recognized.
After forecasting its first revenue drop in 13 years, along with its slowest ever growth in iPhone
The Christmas holiday season will probably help produce an excellent quarter for Apple. After all, it is a technology icon. But it may be their last great quarter for a long time. Shareholders should note that when enthusiasm is highest, and everyone is in, it’s usually a good time to look for the exits. Rather than looking at what is now, investors should ask, “what’s for an encore?” The markets look ahead.
Remember, market tops are made when everything looks best, not when they are bad.
Here is an article by Bert Dohmen, our founder, on Forbes.com, of July 24, 2014.
Investors often ask me, “why is the stock market still going up after five years?” They think it must mean ‘prosperity is ahead.’ Actually, it’s largely due to financial engineering: stock buybacks.
It’s important to see who has been doing the big buying. The only big buyers of stocks over the past five years are the Sovereign Wealth Funds of countries and corporations buying back their own stocks (buybacks). The amount is well over $1 trillion per