Apple shares tumble on U.S. recession worries

8 Comments

1. MDN Take: The good news is that Apple’s customers are the least affected by inflation and recession:

   There are stats showing this?

   From 1995 to present, I’ve owned five Apple desktop computers and two Apple laptops, four iPads, one iPad 4 Mini and one iPhone. In fact, still have them all, but just don’t use most of them

   I got to tell you, as a Mac customer, trying to survive in ice cream eating, recession redefining, inflation creating, half brain dead pedo Joe’s world has taken its toll on me in general and as a Apple customer specifically, as it has others, I’m sure.

   And Apple’s stock also, for that matter.

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2. wait I thought things where now turning around ?

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3. You don’t get the liberty of definite what an American is, the Constitution does that. You also can’t legislate culture and claim to have liberty at the same time you fascist jackass.

   Every syllable you wrote is a lie.

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4. I wouldn’t say Apple customers are least recession proof. I am an Apple customer and Apple share holder. I have a professional engineering career. This past year and a half, my income is back to what I made over 10 years ago; however, my expenses are exponentially higher. Property taxes are way up, electricity costs are way up, fuel oil costs are way up, grocery costs are way up, I can go on and on… This next few years is going to be very tough on more people than we think.

   My personal opinion is the root of the problems stems from greed and corruption between corporations and politicians. Things must turn more in favor of the average worker rather than pushing the money up to the executives and share holders. Instead of always trying to cut costs to increase profits (that ultimately go to the top), we need a better balance of ensuring good, well paying jobs for citizens. After all, if the middle class disappears, ultimately corporate profits will eventually decrease.

   This is not a political statement nor slated to one party or another.

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   1. I’m also a bit cynical about MDN’s “Apple customers” claim, particularly since there’s also been much loud touting in the past about how every young person has an iPhone.

      Sure, you could have rationalized that under age 18 was bought by Mom & Dad, but the job security was in the Baby Boomers and that generation’s now all 60+, so if anything, they’re the grandparents now buying stuff (maybe – – because the 2008 Recession hurt the youngest tail at age ~50).

      Insofar as personal income levels, I’ve also been an Engineering professional. Perhaps it was because of working at a large Enterprise, I never saw my wages decline (and they never were big on bonuses for that to be a factor), so CoVid was largely a shift to telework and money saved from less driving & fewer paid lunches. The reduction in driving alone saved $250/mo; lunch savings was offset with higher booze expenses in 2020 & 2021, to be honest, and higher grocery prices now.

      For Utilities & Property taxes, its been pretty typical creep (although I am now seeing Natural Gas starting to bump up … we got rid of oil decades ago). The big exception is at our Florida property, which thanks to FL Legislative inaction on cracking down on systematic insurance claim fraud has had consecutive +30% YoY increases in P&C insurance (now over $2500/yr). The TL;DR there is that FL’s no longer an inexpensive place to retire, so we’re going to be selling our place there (should have sold it last year, in retrospect).

      Finally, on the erosion of the Middle Class, yes, its a huge problem. I do think that the recent trend of re-onshoring thanks to deglobalization will help stabilize this, there’s still the problem of inequity in income distribution which is enabling excessive concentrated wealth that functionally does not get reinvested into the Country.
      Between that and interest rate hikes to counter inflation, the only political solution that’s available will probably be tax rate hikes, which are already “on Automatic” for 2026 because of how the 2017 TCJA was structured to self-expire with Congressional Inaction. Also not being political, just identifying the facts and how contemporary politicians aren’t known for being deceive, brave, or self-sacrificing like we are.

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5. The problem is the fiat financial system. It’s a system where there’s no scarcity of “The Asset,” meaning it can be “printed” (expanded) to meet any need, with results in ebb/flow cycles where holders are gleeful because of false asset growth, or in duress because the dilution decreases purchasing power (inflation).
   Since the Fed’s creation in 1913, the dollar’s value has dropped over 90%. The Fed & Central Banking System are material players in the falling fiat system. Congress/Treasury are fellow collaborators.

   We need a hard money. “Scarcity” is critical in the true definition. By definition, inflatable $$ is not “hard.”

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   1. Good luck with that. Until currency becomes global, any one nation’s fixed reserve currency can no longer work well. The world has become orders of magnitude too complex for that.

      Credit agencies expand the money supply by extending a bazillion forms of credit, and stupid consumers continue to sign up for it no matter what the fine print says. Gullible people “invest” in crypto ponzi schemes, driving instability to real currencies. Legitimate and illegitimate trading firms attempt to profit by jumping between hard and soft assets, public and private, with increased velocity every year. Obstinate nations use currency manipulation games to exact pain on other nations. Personal loans and black markets flourish. In short, as long as there is an increasing population of humans who can do real work (or fool others into paying for imaginary work), there will be inflation and it will be dramatically worse inflation if you rely on a fixed asset that cannot grow at the same pace.

      That doesn’t mean it’s not theoretically impossible to have a hard currency that works. You’d have to support international cooperation and globalism if you want a completely stable currency, and you’d have to have an international government that cracks down hard and fast on the many get-rich schemes that you see all over the world, from FTX to your local church raffle fundraiser that pays out little to take in huge profit margins in ticket sales for nothing but the promise or a possible payout. Faith instead of reality, right?

      Like it or not, the US Fed has done a pretty decent job tracking to their 2% inflation goal for many years. The US dollar, since it has been allowed to float, has been objectively more stable than it was prior to 1970. Yes we are dealing with a mess thanks to pandemics and Putin’s stupid war, but you’d be ignorant of history if you think a return to the gold standard is a cure.

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6. Might be an excellent time for The Board to increase the AAPL dividend to a beautiful, nice round number? Say, $1/share?

   Keep doing the stock buybacks if you must (they help), but spread the love during this Holiday Season Apple. There’s a giant pile of cash that even an 11% increase in the yield couldn’t dent. Seems a wonderful time to release some of those strategic reserves from the war-chest.

   💰💰💰

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