Down goes the Dow

“The market will not go on a speculative rampage without some rationalization. But during any future boom some newly rediscovered virtuosity of the free enterprise system will be cited. It will be pointed out that people are justified in paying the present prices - indeed, almost any price - to have an equity position in the system. The newspapers, some of them, will speak harshly of those who think action might be in order. They will be called men of little faith.”

John Kenneth Galbraith, The Great Crash, 1955

Apple 3rd Quarter Year-Over-Year Comparison

Net Income

2015 $11.1 Billion

2016 $9 Billion

EPS

2015 $1.96

2016 $1.67

Using 2015 share count EPS would have fallen to $1.58. Long term debt increased by $22 Billion.

Igy

Didn't you recommend Apple?

The evidence is the faked posts and those that continue to perpetuate the slander. The Moderators are aware of these activities. I am collecting my own copies of these posts and I will use them.

Igy

Eye,

Bought some positions under $90 earlier in the year. The post was a illustration that earnings are less than the optimistic spin of others.

Igy

Eye,

Perhaps a representation of the future Apple earnings and market share growth.

https://mobile.twitter.com/hussmanjp/status/791078326232285184?p=v

Igy

More on the Apple conundrum:

https://mobile.twitter.com/hussmanjp/status/791080184749383680?p=v

Igy

Wall Street was set for a day in the red on Wednesday, with Apple posting one of the biggest premarket losses after a disappointing outlook for the current quarter.

A continued drop in oil prices and another round of big-name earnings results also kept some investors on the sidelines.

Futures for the Dow Jones Industrial Average slid 56 points, or 0.3%, to 18,041, while those for the S&P 500 index fell 7.25 points, or 0.3%, to 2,131. Futures for the Nasdaq-100 index lost 21.25 points, or 0.4%, to 4,864.75.

The indexes were weighed down by a 2.7% premarket slide for Apple Inc.(AAPL) after the iPhone maker late Tuesday posted quarterly earnings that slightly beat expectations and revenue that was just shy of forecasts. Investors also may have been disappointed that the tech giant's projections for the current quarter weren't more bullish, analysts said.

The market weakness on Wednesday comes after a downbeat day on Tuesday when worries about a string of lackluster earnings and a drop in consumer sentiment sent the S&P 500 0.3% lower and the Dow average down 0.3%.

Analysts: Apple's innovation will pay off... eventually

Despite another quarter of low year-over-year sales, Apple is looking ahead to longer-term ventures as future growth drivers, analysts say.

Read more:

http://www.cnbc.com/id/104050611

"Strikes me that global equity markets broadly peaked in Q2 '15 and recent marginal US highs were a "throw-over" on post-Brexit rate plunge."

John Hussman Tweet, 10/26/2016

"Strikes me that John Hussman is a one-trick pony who has been a failure as an investment advisor and anyone who follows him in Twitter is a moron."

Travis Kelce real words, 10/26/2016

In March 2000, I wrote “It can really seem like defensiveness is an enemy, and speculation is a friend. The same was true in the late 1960’s, when McGeorge Bundy of the Ford Foundation directed the managers of university endowments to become more aggressive: ‘We have the preliminary impression that over the long run, caution has cost our colleges and universities much more than imprudence or excessive risk-taking.’ In the plunge that followed, that preliminary impression turned out to be horribly incorrect.”

--John Hussman

Is he seriously trying to take credit for calling a plunge over 30 years after the fact?

Try reading: “It can really seem like defensiveness is an enemy, and speculation is a friend. The same was true in the late 1960’s....." As Hussman said the same was true in 2000. He said the same in 2007, and same today.

Igy

To be honest, he says that all the time.

🍒

So does he, just on the other side of the argument:

http://www.businessinsider.com/professor-jeremy-siegel-rip-2009-2

The question is who do you believe right now, today?

Igy

🍒

Say wha? wrote:

Is he seriously trying to take credit for calling a plunge over 30 years after the fact?

Sounds like somebody else who made a ridiculous (open ended date) prediction on here over 3 years ago. I'm sure he'll take credit for calling it if it happens 30 years from now.

“The failure of the general market to decline during the past year despite its obvious vulnerability, as well as the emergence of new investment characteristics, has caused investors to believe that the U.S. has entered a new investment era to which the old guidelines no longer apply. Many have now come to believe that market risk is no longer a realistic consideration, while the risk of being underinvested or in cash and missing opportunities exceeds any other.”

Barron’s Magazine, February 3, 1969.

"The S&P 500 had already started a bear market a few weeks earlier, which would take stocks down by more than one-third over the next 18 months. The S&P 500 Index would stand below its 1968 peak even 14 years later (with a real average annual total return of -3.4%, after inflation, over that period)."

--John Hussman, Weekly Commentary 10/24/2016

mellon wrote:

Say wha? wrote:

Is he seriously trying to take credit for calling a plunge over 30 years after the fact?

Sounds like somebody else who made a ridiculous (open ended date) prediction on here over 3 years ago. I'm sure he'll take credit for calling it if it happens 30 years from now.

Sh*t. If the Dow is under 13,000 30 years from now I would say whoever called it was damn prescient and deserves lots of credit.

If the Dow was at 15k at the time of the original comment and were to lose @ 13% of its value over the next 30 years then steering clear of investing in equities would be a damn good strategy.