Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
AI Stocks Strength vs Weakness - Why Selling Google or Facebook is a Big Mistake! - 14th Jun 21
The Bitcoin Crime Wave Hits - 14th Jun 21
Gold Time for Consolidation and Lower Volatility - 14th Jun 21
More Banks & Investors Are NOT Believing Fed Propaganda - 14th Jun 21
Market Inflation Bets – Squaring or Not - 14th Jun 21
Is Gold Really an Inflation Hedge? - 14th Jun 21
The FED Holds the Market. How Long Will It Last? - 14th Jun 21
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21
Why Tether USDT, Stable Scam Coins Could COLLAPSE the Crypto Markets - Black Swan 2021 - 6th Jun 21
Stock Market: 4 Tips for Investing in Gold - 6th Jun 21
Apple (AAPL) Summer Correction Stock Trend Analysis - 5th Jun 21
Stock Market Sentiment Speaks: I 'Believe' We Rally Into A June Swoon - 5th Jun 21
Stock Market Russell 2000 After Reaching A Trend Channel High Flags Out - 5th Jun 21
Money Is Cheap, Own Gold - 5th Jun 21
Bitcoin and Ravencoin Cryptos CRASH Bear Market Buying Levels Price Targets - 4th Jun 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Apple Vs Gold, Silver and Past Market Bubbles

Companies / Company Chart Analysis Feb 19, 2012 - 07:29 AM GMT

By: Willem_Weytjens

Companies

Diamond Rated - Best Financial Markets Analysis ArticleApple (Ticker: AAPL) is doing great these days. In January, the company reported that profits for the holiday quarter more than doubled.

The stock price shot up 8% on the news, and rallied all the way to over $526 per share in the days that followed.


On July 10th 1997, the stock was trading as low as $3.16. From $3.16 to $526+ is an increase of 16,554.75% in 15 years time.
The chart is starting to look like a bubble in the making, as price is starting to go parabolic.

Chart courtesy Prorealtime.com

When we take a look at past bubbles, we can see that Apple has now reached the top 3 of all “Bubbles”. Only eDigital and the Poseidon bubble did even better, with returns of 45,400% and 34,900% respectively…

Chart courtsey Sharelynx.com

Could Apple go even higher? Sure! Imagine it would rise to $1,000 per share. It would then have gained 31,545.57%, which would be close to the Poseidon Bubble.
In order to beat the eDigital Bubble, AAPL would almost have to tripple to over $1,437.80.


Chart courtesy Prorealtime.com

Is it possible? Yes… AAPL is trading at historically low price-to-Forward Earnings levels, as can be seen in the chart below.
If instead, AAPL would be trading at a Price-to-Earnings Ratio of let’s say 30, and we assume profits would remain flat over the next 2 years, then Apple would be trading close to the $1,437.80 level.

In addition to the low Price-to-Earnings valuation, AAPL has a war-chest of $97.6 Billion (of which $64 Billion is off-shore), which it could use to make acquisitions, pay dividends, buyback shares, buy patents, and so on, so Apple has a lot of possibilities to grow even further.

Chart courtesy Zacks Research Wizard

To put things in perspective: During the Tech Bubble, Cisco Systems (Ticker: CSCO) was trading at an insane 150 times Forward Earnings:


Chart courtesy Zacks Research Wizard

Apple’s gains dwarf those of Gold and Silver, even though those two assets also had a very impressive run since the beginning of the 21st century:


Chart courtesy Prorealtime.com

Gold was up 663,87% from its low in 1999 to its high in 2011, while silver was up 1,130.12% from its low in 2001 to its high in 2011.

When we compare Gold to Silver, we can see that Silver also went parabolic in April 2011 and has come down sharply since.

Chart courtesy Prorealtime.com

If silver would rise as much as during the ’70s (3,099%), it would have to rise to $129.56 per ounce.
Gold (Up 2,276% in the seventies), would have to rise towards $5,975.65.

Please notice that Alf Field has often called for $6,000 gold (link).

Martin Armstrong has also had a terrific track record. Here were his predictions he made in 1998 (see the last slide of this presentation):

1998 = Collapse of Russia
1999 = Low Gold & Oil
2000 = Technology Bubble (Like Railroads in 1907)
2002 = Bottom US Share Market
2007 = Real Estate Bubble, Oil hits $100
2009 = Start of Sovereign Debt Crisis
2011-15 = Japan Economic Decline
EURO begins to crack due to debt crisis
2015.75 = Sovereign Debt Big Bang

All of those predictions up till 2011 have come true. If the last one also comes true, then the above targets for Gold and Silver would become extremely likely as faith in paper currency would likely smelt like snow in the sun.

Good luck investing.

For more articles, trading Updates, Nightly Reports and much more, please visit www.profitimes.com and feel free to sign up for our services!

Willem Weytjens

www.profitimes.com

© 2012 Copyright Willem Weytjens - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in