The Law of Large Numbers

Apple and Google are approaching market caps of $200 billion. Once that type of size is reached it is a lot harder to move in the manner they have been. Especially, because they don't pay dividends and therefore are excluded from many portfolios.

8 comments:

Anonymous said...

Doesn't really make any sense to me that AAPL has a market cap twice that of Samsung Electronics when it doesn't do a third of its revenue and only sells like 3 products.

Goog really has no comparison so I'll leave it at that. But that's probably a giant bubble as well.

CP said...

Everything is a bubble. Did you see the REITs today?

nicasurfer said...

The fact of the matter is people are going to sell non performing assestts and equities that do not pay dividends wil suffer.

Tsachy Mishal said...

I thought that after two bubbles burst that we would not see this type of exuberance and recklessness for many years.

Anonymous said...

too easy to be a bear now. market continues to climb...

Tsachy Mishal said...

too easy???

PJ said...

Tsachy, I thought the same, thought we wouldn't get a third bubble. But everyone's jumped on the momentum train. They must think that after being burned twice, they're now going to jump off quicker than before, and get out early ... That suggests to me that the next move down could be see a lot of volatility -- sharp downdrafts punctuated by sharp rallies.

Financials have been safe shorts for a while but tech is getting to attractive shorting levels now. REITS are crazy expensive, not sure how they'll roll over their debts. In a double dip recession they'll be huge movers down.

Anonymous said...

January 26... be prepared.