A few thoughts on Apple's $1.5 trillion market cap

On Wednesday June 10th, as Nasdaq hit a new all-time high of 10,020, Apple also made history when its stock price went up to $352. With that price Apple became the first US company to reach a $1.5 trillion market capitalization. With the current erratic behavior of the stock market, who knows what happens next. it could very well be that Apple hits the $2 trillion milestone a lot sooner than anybody thinks.

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Is the stock market completely decoupled from reality?

But has the economy recovered at all? Is the COVID-19 crisis really over? Nobody can know for certain what will happen in the autumn, but many researchers and medical professionals are warning about the possibility of a serious second wave of the virus. And in the US they have – on top of all the misery caused by a pandemic – massive civil unrest and political uncertainty ignited by the killing of George Floyd. Yet, if you look at the stock markets and the US markets in particular, it would seem as though everything is just as rosy as it was in January. I find this completely absurd.

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The Art of Sitting on Your Hands

2016 has started roughly for stocks all around the world. The chaos in China spread quickly to other continents and demonstrated brutally how interconnected the global markets are today. Oil is crashing to new lows and is currently trading close to $30. The S&P500 index had its worst-ever first week and went down roughly 10% from autumn highs. The noise is getting louder and louder and stock market investors are faced with a dilemma: should I sell everything or just sit on my hands and keep it cool.

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