There’s no shortage of good material from you folks. The comment boards are lighting up, and no surprise given the explosive reports I’ve filed for you in the past week on the European banking crisis, the Deutsche Bank bomb, and an official Super Crash warning.
In particular, I’m getting a lot of questions right now about big-name equities like Apple, Chipotle, Starbucks, Alcoa, and more – as well as the all-important precious metals and currencies.
I hope these answers help you make good decisions as you get your portfolio ready for the Super Crash.
Here’s what you need to know.
Q: How do you see the value of [Apple Inc.] AAPL in 2016 especially with ApplePay being launched? ~ Carl M.
A: AAPL is not an expensive stock but it has run into the problem that all huge companies ultimately face – how to keep growing from an enormous revenue and profit base.AAPL will almost certainly remain among the most profitable companies in the world, but at its current size it is going to be extremely difficult for it to grow at a high enough rate to gain a high earnings multiple.New initiatives like ApplePay just won’t move the needle on the stock.In a bear market, it is going to be difficult for AAPL to do better than the market.
Q: [Alcoa Inc.] AA is more tied to economic growth than any other company in this world. How can this be a long given your outlook? ~ Max K.
A: To be honest, I had a hard time finding ANY stocks to recommend to buy this year. I believe we are already in a bear market and it is going to get worse.But AA is a very cheap stock with limited downside and the potential for decent gains as a break-up candidate.It has attracted the attention of one of the most astute value and activist investors in the world, Elliot Management, which tells me that has good potential for gains.
Q: Your analysis of [Chipotle Mexican Grill Inc.] CMG is suspect, have you actually visited any location? They are still packed, maybe not the across the block long lines as before, but I think they will post a much smaller SSS loss than the Street expects… ~ Dan J.
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