Tag Archive for Dow Jones

Gold Prices and the "Grexit" Effect

Lately gold priceshave been affected by a strengthening dollar resulting from troubles overseas.
On Tuesday, Greek Prime Minister Lucas Papademos told Dow Jones Newswires that considerations were being made for a potential exit by Greece from the euro. He also warned that such an exit would be “catastrophic” for the country and that fallout across the entire Eurozone would be severe.

Why is Apple Inc. (Nasdaq: AAPL) Stock Falling?- Money Morning

Apple Inc. (Nasdaq: AAPL) investors have cringed as the stock slipped about 16% from its peak over the last two months.

But given the absence of any catastrophic bad news, why is AAPL stock tumbling? And where will it stop?

It’s important to note off the bat that Apple’s fundamentals are just as strong as they were last fall when the stock began its huge run-up from just under $400 to $636.23 on April 9 (it hit an intraday high of $644 on April 10).

In short: Apple still expects to make a mountain of profit this year. Apple still has over $100 billion in cash with no debt. The company’s price/earnings ratio is about 13.50 for the trailing 12 months and its forward P/E just 10.

So something else must be driving down Apple stock. Some of it is logical, some of it emotional – but none of it permanent.

Let’s take a closer look:

  • A Parabolic Rise: First and foremost, AAPL simply rose too far too quickly. Rapid gains beg profit-taking.

“It was clear to me that this kind of reversal was coming – and sooner rather than later,” said Money Morning Chief Investment Strategist Keith Fitz-Gerald when the selloff started in April. “The shares had soared 75% in just five months – one analyst actually described the performance as “euphoric.'”

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