Unemployment is a dynamic indicator, perhaps it starts as a lagging indicator, but it turns into a self-fulfilling leading indicator.

The government realizes if they convince enough people the economy is recovering, they will start spending again. After they do this they point to the fact people are spending as proof the economy is recovering.

It’s such circular logic: why is the economy recovering? Because people are spending.
Why are people spending? Because the economy is recovering….What a joke.

Are you living on the same planet as the rest of us? Granted, I’m in Japan now, where are you? And what are you smoking? And do you share it?

Before you label me as an Apple-basher, I’ll tell you I’m not. I did PR for Apple from the late 90s until just past the opening of the Apple Stores. I dumped my stock a while ago. As the other posters have mentioned, please please please stop drinking the Steve Kool-Aid. No more than 4% of your portfolio should be in any one equity. 30X earnings? Come on, man, how high do you think it’ll go?

People have cash? Who? Last I checked the whole consumer-led economy was based on housing, and that’s crashing hard, along with consumer lines of credit. Party’s over for like…10 or 15 years. Time for the hangover.

I believe you are confusing the initial effects of flooding the economy with new paper/credit with an actual recovery based on fundamentals.

Both will initially produce similar and positive economic effects. One is illusion, one is reality. Doubling note/credit supply in just months creates an ILLUSION of “recovery”. Restructuring the allocation of resources on a macro-scale (fundamentals) provides for a “recovery” based in REALITY.

The economic fundamentals, some of which were mentioned by Mr. Bonner above, HAVE NOT CHANGED. There is another steep decline coming in equities for that very reason. You are being pumped right now, and soon you will be dumped.

Stick with that Apple stock though – at almost 30 times earnings. It’s not like the earth isn’t completely flooded with “luxury” electronics in an economic downturn or anything, and their CEO’s health is certainly irrelevant to the valuation of the company…it’ll still be 30x earnings if he dies tomorrow right?

You might want to look at some different investing strategies Harry…

Apple is down 6% over the last year and pays no dividend. What does a bad stock look like to YOU?

My guess is 1970′s style stagflation. Gold if you all remember performed well in the 70′s, as did junior mining stocks. Banks did poorly. And we have all ready seen one oil crunch. More to come there, as tight supplies will act as a brake and put a drag on economic growth. I wish, I knew Mr. Bonner was in town. I could of invited him over for some smoked salmon!

You are a very complicated man.

Ed watkins
972 424 5999

What you didn’t state is the fact that, with the exception of unemployment, which is lagging anyway, all of those numbers are indeed getting BETTER. Not only that, the numbers are indicating that our recession ended in May. I agree. We’re out of it and into a slow growth phase now.

And, as I like to mention each day, my Apple stock is up nicely once again. If the consumers were dying, when then would they be gobbling up expensive phones with expensive plans?? Answer: most people have money and are spending it.