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AAPL Has Been The Mainstream Investment of the Decade
Has anyone had there eye on AAPL lately?! We have and looking at the charts, you really cannot help but wish that your money was invested in this stock from the turn of the century when you could have gotten into AAPL as it dipped below $10 per share and now knocking on $600. The last year has been the real shock in what seems to be a nonstop growth in AAPL. Their chart looks like something that you would only dream of, considering the stock has almost doubled in the last year at nominally astronomically high numbers. The question is how high and how far can this go. The person that could perfectly time the sharp correction that AAPL will inevitably have to have to compensate for the bullish speculators and short the stock accordingly is likely to make some serious amount of money. Of course timing the market perfectly is the million dollar question, because who really knows if it’s at its peak or if it’s going to $700 or if the stock is already heading back to the $400 range.
Seeing this bull rush in price appreciation over the last year is a foreshadow for what will eventually happen in the metals market. There will inevitably be that one final bubble mania phase where everyone and their neighbors are investing in metals and the price will increase exponentially like the way AAPL has done over the past year. The question at that point of course is when do we sell our gold and silver and transfer it over to real estate and other long-term investments. People respond to investments by being excited to buy at the high and fearful when prices are falling. This quote by Warren Buffett was very insightful to the actions of conventional thinkers.
“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.
” Warren Buffett
As much as Warren Buffett can annoy us on his politics, sometimes his insight on investing can be inspiring.
If the news stations start reporting gold and silver skyrocketing and America becomes GOO GOO for Gold, the time will be near to sell. Being that the world is still under major financial stress, CrushTheStreet.com does not believe that we will see this happen for at least another few years.
Spain Is Worse Than Greece
Spain’s eye-wateringly high unemployment and the collapse of its real estate market mean that Spain has significantly worse problems than Greece and could threaten the euro zone’s new-found, albeit fragile stability, an analyst told CNBC.com Tuesday. The country has the euro zone’s highest rate of unemployment – now over 22 percent. Spain is so much larger than Greece, so even if there is a small risk of a default or a bailout then it has much bigger implications for the euro zone than Greece had.
This week we saw the banks under go a stress test issued by the Federal Reserve. 4 out of the 19 banks did not pass the Stress Test, one of which being Citibank. It really isn’t saying much though since Bank of America was one of the banks that passed. Remember, they were the ones that took the Countrywide poison a couple years back.
Americans complained about higher gas prices last month, but it wasn’t enough to stop them from shopping. The Commerce Department said retail sales rose 1.1% in February, on top of a 0.6% improvement in January that was bigger than originally estimated. For some Americans, spending is an old habit that will have to die hard. When the burden at the pump starts to eat away through household’s “disposable” income into their “manditory” spending needed to pay for their groceries, cars, and mortgages you can expect retail sales to reflect it. Especially when gas gets into the $5 range. $6 gas will be unsustainable and send the economy into a tailspin.
Central Bank Mayhem
The bank of Japan plans to stimulate growth by increasing lending. Japan’s central bank plans to increase lending by $24.32 billion to stimulate the economy. Governor Masaaki Shirakawa said the effort is part of a package to cope with deflation. “Persistent efforts are needed to create growth potential and thereby defeat deflation,” he said.
China’s central bank indicated that it is ready to loosen monetary policy further to encourage lending by banks and stimulate the economy, as export demand weakens. Zhou Xiaochuan, governor of the People’s Bank of China, said the bank might continue relaxing the reserve ratio for banks. “We have a lot of room to adjust the reserve ratio,” he said.
Speaking of central banks and corruption, the Federal Reserve is trying to prevent Chairman Ben Bernanke from being forced to testify in a civil lawsuit about Bank of America’s purchase of Merrill Lynch. The lawsuit alleges that BofA and former CEO Kenneth Lewis withheld information about Merrill Lynch’s skyrocketing losses when they asked shareholders to approve the $19.4 billion deal. Talk about a conflict of interests. How much longer will this scam of an entity exist?! END THE FED!!!
Fitch Takes Britain From Negative To Stable
Fitch changed its outlook for Britain to negative from stable, indicating a “slightly greater” than 50 percent chance the nation will lose its AAA grade within two years. Longer-dated bonds underperformed two-year gilts as the debt agency sold 2 billion pounds ($3.13 billion) of December 2042 securities.
Seeing how the rest of the world seems to be falling quicker than the U.S., it is perfectly clear why foreign demand for U.S. treasury debt rose 9% in January. Seems like the best of the worst investment is about as good as it is going to get for conventional global investors.
VIDEO Posted On Our Front Page
CrushTheStreet.com posted a video on our front page where Peter Schiff goes head-to-head with Paul Volcker, former chairman of the Federal Reserve. There seems to be a bit of hypocrisy in the sense that he doesn’t like more debt, but when it came down to stimulus and artificial bolsters to the economy, he praises the actions of the current Fed’s decision.
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|Peter Schiff vs Paul Volcker
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