• Nick Sorrentino

Apple shares drop like a rock, Dow falls more than 400 points at mid-day

There is no doubt now that we are seeing legitimate economic turbulence at the moment. Part of this, a big part of this, is the Fed raising rates. This is what the Fed does, it undershoots out of arrogance and overshoots out of arrogance. We should have market based fundamental interest rates that adjust more naturally and more incrementally. But, that is unlikely to happen anytime soon.

Apple shares, one of the most widely held stocks, are being beaten like a rug during spring cleaning. (-8% at this moment.) Many a retail investor popped a Tums this morning. The same can be said probably for at least some of the institutional investors too.

Will this be the big change? Are we seeing it happen? It's too soon to know. But rising rates (though they came off of recent highs in some areas recently) and trade wars are generally not good for the economy.

On another front gold and silver are making moves upward.

(From CNBC)
“While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China,” Apple CEO Tim Cook wrote in a letter to investors on the warning. “We believe the economic environment in China has been further impacted by rising trade tensions with the United States. As the climate of mounting uncertainty weighed on financial markets, the effects appeared to reach consumers as well, with traffic to our retail stores and our channel partners in China declining as the quarter progressed.”

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