Has the Tech Deflation Arrived? Is it the end of an era? The markets haven’t seen higher numbers since the crash in 2008! The Standard & Poor’s 500 index closed above 1,500 on Friday for the first time since 2007. The index rose for the eighth straight day, its best streak since 2004. That sentiment helped the Dow Jones industrial average rise 70.65 points, or 0.5%, to 13,895.98 on Friday. That put it within 269 points of its October 2007 peak. Apple shares have fallen 37% since September.
So why is Apple doing poorly and what could that mean for the markets? Will Apple spark a giant sell-off in a time that is supposed to be good for markets? Many analysts are worried because Apple didn’t meet their very very high expectations, which caused Apple’s loss and poor outlook. This caused more panic on the street as people are not as excited about what Apple has been offering lately and top investors are saying that Apple needs a catalyst to get people interested again. What will it be?
Remember Apple has more cash on hand than the US Government. A $137 Billion surplus in fact. Will Apple try to buy a major company to get back on its feet like Netflix or VISA? Or more likely Apple actually knows that it’s market cap is artificially high and has already braced and covered its loses from this artificial fear? Or worse, could the Apple sell off be so deep inside the Technology World that it will be a mini tech bubble burst? I say, it would be more like the Tech Deflation, as companies Dell, HP, Lenovo, Blackberry, Facebook, and now Apple are all struggling to please investors.
Will we see a major tech sell off in the next few weeks Or is it all fear mongering?