Did we finally hear a ‘less hawkish’ Jay Powell yesterday? For the first time in months the Fed Chair may have slightly lowered his guard. But barely… as Powell is far from being a dove. A dovish Fed is one that is (a) cutting rates; and (b) ending quantitative tightening. Neither of those things are happening soon. But it wasn’t just Powell’s language which fired up the bulls. Janet Yellen also played a role – suggesting the government plans to sell less debt than expected… sending bond yields lower.
Apple: An Incredible Business – But Don’t Overpay
This week the final two mega-cap tech names reported Q2 earnings. Amazon handily exceeded what were very low expectations. AWS (Cloud) sales rose 12% year over year – much better than feared – given the soft results reported from Microsoft’s Azure. This sent the Cloud and eCommerce giant higher by ~11% . On the other hand, investors had a very different reaction to Apple’s earnings. The iPhone maker’s results were mostly inline. But “inline” is not good enough when it’s trading ~30x to 31x forward earnings. So what is the right multiple to pay for Apple? And can it reignite growth looking ahead?
For a full list of posts from 2017…