Apple (AAPL) Stock: The Case for Up

With the VIX at lows, and central banks across the globe printing money at breakneck pace, it seems a great time to be long equities. Not that I think this is good for the long run, but for at least a couple years this should be great for equities.

Specifically, Apple (NASDAQ:AAPL) has decline 25% from its peak in September, probably due to investors with large gains taking their capital gains before 2013 when such capital gains rates will go up.

Given so many interest groups have an interest in asset prices rising, and the central banks across the world have this as their priority, I think once banks get some of their final legacy lawsuits off their backs they will start lending again, M2 will explode, and prices will rise. First in assets.

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About Eric Falkenstein 136 Articles

Eric Falkenstein is an economist who specializes in quantitative issues in finance: risk management, long/short equity investing, default modeling, etc.

Eric received his Ph.D. in Economics from Northwestern University , 1994 and his B.A. in Economics from Washington University in St. Louis, 1987

He is the author of the 2009 book Finding Alpha.

Visit: Eric Falkenstein's Website

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