“Every financial era has its signature stock. It’s a company that defines an era. For market bulls who own stock in Apple (AAPL) that could be bad news,” Jeff Macke writes for Yahoo Finance. “Since early October Apple stock is down over 20%. Recently the S&Pc500 started a slide of its own, dropping 7% from recent highs. The question for investors isn’t whether or not Apple stock can regain its mojo, but whether Apple is the canary in the coal mine signaling another economic downturn.”
“Long-time Apple bull Todd Schoenberger, managing principal at The BlackBay Group is concerned. ‘Apple is a true proxy of the global economy,’ he says in the attached clip,” Macke writes. “If Apple is slowing down it could be an ominous sign for spending worldwide.”
Macke writes, “It’s a leap but flagging passions for all-things Apple may be a sign that the economic recovery has already come and gone. At the very least stock market participants are voting with their feet. It’s a risk-off world as investors brace for the unknowns of fiscal cliffs and global risk. Unless Apple can find a way to get traders excited again the company’s great bull run will be over.”
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MacDailyNews Take: Apple last quarter posted quarterly revenue of $36.0 billion and quarterly net profit of $8.2 billion, or $8.67 per diluted share, Apple Inc.’s all-time record for the September quarter.