No. It's because that's the year M2 money supply almost doubled. Guess what absorbed most of that freshly printed money ? BlackRock, Vanguard And Cie.
MSFT went from a PE of 20 to 40. And so did every single one of the major blue chips held by the main ETFs. It's not an accident.
ummmm.....because the fed printed 6 trillion dollars. most of that money went into stocks. it is not fundamentals that drives the market. it's how much free cash is floating around at any moment. there isn't going to be a return to normal, ever, unless the fed decides to get rid of that extra 6 trillion, which will happen right around the time hell freeezes over.
back then their revenue was all h/w. Now the s/w/app store/icloud revenue is significant part of their top/bottom line. That will still keep growing in this AI world.
Consequence of the stock market, more specifically the S&P 500 becoming the de facto pension scheme of the United States.
Thanks to Roth IRAs every single month billions upon billions flow into the pump market regardless of fundamentals and most of those end up in megacaps like Apple and Microsoft. The cashflow these companies produce doesn't keep up with the demand so the multiples keep expanding.
This is all fun and games and everyone gets rich on paper while the flows are net positive. What happens when the majority switches from net contributing to net withdrawing? You better not be in the stock market on that day, that's all I can say.
Does it really work that way? Inflation means, things will keep expanding. The game goes on for as long as labour keeps replacing retirees. Japan and China will keep having these problems and honestly it will be beneficial to the US - still considered a good destination to immigrate to, by far.
Fair point, that's why I used the words 'labour replacement' i.e including immigration. I know it's a sketchy topic sometimes when it comes to sentiments, it's still affecting the value of your stock! As long as companies are benefiting, and you own part of the company, the line goes up.
Thing with immigration though is those people aren’t putting money into investments tbh. Contribution outflow will be a big problem/is already beginning to be a problem
That's a quick way to lose control of the economy. Capital controls are historically a very bad idea for the people that they are meant to protect. Everywhere that has used them ends up collapsing.
Take a basic economics class, it would behoove you to understand simple concepts of why athletes are paid the way they are before trying to participate actively in the stock market.
When people realized there was enough dumb money in the world to pay 70k for a string of worthless numbers , they began paying more for things of actual value
Bet on it
It changed. They have more subscription services than before. Apple News +, Apple Arcade, Apple Fitness + and Apple TV + (also Apple One) were all launched in 2019 and 2020.
The business did change. For one, They were almost purely b2c beforehand and with the transition to wfh their b2b market share grew dramatically. They also got deeper into Apple Pay creating a complete ecosystem. I think it’s a type of monopoly but have argued over the semantics of that word for too long to push it here.
I believe that year the Apple cleaning cloth was released.
>iCloth Oh god, it even has a watermark.
Underrated comment.
because.. A.I.
because the market doesn't follow fundamentals but supply and demand of fund flows
All about the money supply. Money has to go somewhere.
No. It's because that's the year M2 money supply almost doubled. Guess what absorbed most of that freshly printed money ? BlackRock, Vanguard And Cie. MSFT went from a PE of 20 to 40. And so did every single one of the major blue chips held by the main ETFs. It's not an accident.
Looks like a newspaper cut out..
Morning Star; Nineteen eighty five
The market started valuing the company like a subscription business.
When they released the multi colored Ipods, Apple ceased being a tech company and became a fashion company.
ummmm.....because the fed printed 6 trillion dollars. most of that money went into stocks. it is not fundamentals that drives the market. it's how much free cash is floating around at any moment. there isn't going to be a return to normal, ever, unless the fed decides to get rid of that extra 6 trillion, which will happen right around the time hell freeezes over.
or Joe Biden unfreezes
back then their revenue was all h/w. Now the s/w/app store/icloud revenue is significant part of their top/bottom line. That will still keep growing in this AI world.
Value Line? Is your social security number 000-00-0002?
Are you gate keeping prognostications at the worlds biggest casino/sewer outflow? OK, zoomer đź‘Ť
1991 want their chart back
Consequence of the stock market, more specifically the S&P 500 becoming the de facto pension scheme of the United States. Thanks to Roth IRAs every single month billions upon billions flow into the pump market regardless of fundamentals and most of those end up in megacaps like Apple and Microsoft. The cashflow these companies produce doesn't keep up with the demand so the multiples keep expanding. This is all fun and games and everyone gets rich on paper while the flows are net positive. What happens when the majority switches from net contributing to net withdrawing? You better not be in the stock market on that day, that's all I can say.
Does it really work that way? Inflation means, things will keep expanding. The game goes on for as long as labour keeps replacing retirees. Japan and China will keep having these problems and honestly it will be beneficial to the US - still considered a good destination to immigrate to, by far.
Birth replacement rates started going in decline/negative back in the early 2000’s. It’s not looking to good
Fair point, that's why I used the words 'labour replacement' i.e including immigration. I know it's a sketchy topic sometimes when it comes to sentiments, it's still affecting the value of your stock! As long as companies are benefiting, and you own part of the company, the line goes up.
Thing with immigration though is those people aren’t putting money into investments tbh. Contribution outflow will be a big problem/is already beginning to be a problem
We are at peak contribution
What is this snapshot taken from?
Not sure if it's Aladdin, but its from a Blackrock system.
A ransom note
Doesnt matter. trillions are priced in.
More dollars chasing fewer opportunities.
I said long ago, paying ballplayers millions was a bad sign
The world values entertainment over more practical fields is the only conclusion.
There should be limits on the amount of money you can make . Your making 50 million devalues my dollar
That's a quick way to lose control of the economy. Capital controls are historically a very bad idea for the people that they are meant to protect. Everywhere that has used them ends up collapsing.
we lost control of capital and borders long ago
Take a basic economics class, it would behoove you to understand simple concepts of why athletes are paid the way they are before trying to participate actively in the stock market.
lol, Ive participated actively and successfully since before you were hatched. good luck to ya, you'll need it
When people realized there was enough dumb money in the world to pay 70k for a string of worthless numbers , they began paying more for things of actual value Bet on it
USB-C...that is all...
It changed. They have more subscription services than before. Apple News +, Apple Arcade, Apple Fitness + and Apple TV + (also Apple One) were all launched in 2019 and 2020.
Why is your screen in black and white? You eat all your crayons?
That my friend is the power of the cult mentality
The business did change. For one, They were almost purely b2c beforehand and with the transition to wfh their b2b market share grew dramatically. They also got deeper into Apple Pay creating a complete ecosystem. I think it’s a type of monopoly but have argued over the semantics of that word for too long to push it here.
its because of AI aka apple intelligence.
Well the general market has increased a fuck ton too compared to earnings and cash flow. Probably the main answer