Apple Loses $445 Billion: 90 Days Oct.3-Jan.3 / Dividend cut?

[Microbio-glutonist + 61]

The once most valuable, "trillion dollar company," was at a high on 3 Oct. 2018, just 90 days ago, selling at $233.47 /share. 

Apple closed at $142.19/ share today, 3 Jan. 2019. But, there's always tomorrow!

$445 Billion, almost half a trillion in market cap loss, which is also close to half, 39.7% of total market cap value.  

Tesla, another high flying stock, and short seller favorite, dropped intraday to just $297.38 / share, down from the recent 13 Dec. 2018, $376.79 /share close and the infamous Musk August 2018 "taking it private" tweet close of $379.57.

If you were a short seller, you are happy; otherwise, most retirement savings and investors are losing their shirts. 

Even The Oracle of Omaha, Warren Buffet, is not safe. https://www.forbes.com/sites/antoinegara/2019/01/03/warren-buffett-down-43b-in-a-day-was-right-to-downplay-berkshires-apple-gains/#66ff42d7906e

The lessons of the 18-19 crash will be debated and exhaustively analyzed. What is true is that the international dollar, the underpinning of the global financial system, is no longer economically sound. 

America went bankrupt first in 1971 (USD Removal from Gold Standard). In 1973 the world turned to the Saudi's for petrodollar backing. By the 1990s, the oil-rich grew tired of sanctions and angry with American seignorage and excess. On 11 Sept. 2001, America went to war against terror, which meant it needed a new paradigm to continue its largesse. China became America's manufacturer on 13 Dec. 2001, its entry into the WTO, just months after 911. Soon, America imported deflation from China and waged war on the middle east and Persia.

By 2008-09, America faced bankruptcy a second time, which would have caused a global financial collapse and WWIII. Global dependence on the dollar meant everyone wanted the dollar to survive. Too much wealth is measured in the USD. 

Barack Obama and the Fed began a decade of QE. QE and internationalization efforts severely expanded the Feds balance sheet and the deficit. Today, America owes $22T in debt and another $210T in unfunded mandates. It's tough to Keep Hope Alive!

The answer, Donald Trump? At least enough people thought he is the answer to elect him, until November 2018. 

The slow and no growth Obama years, coupled with massive deficit spending, QE, and anti-business policies escalated America's demise. The American people wanted more social welfare, so they have returned to the Democratic Party. 

It is no coincidence that the Democrats are taking over today, the same day the global economy is tanking. It is almost certain that the anti-business environment will return. Climate Change (Global Welfare), sanctuary cities, drug legalization, gender fluidity, socialized healthcare, increased minimum wage, tax increases, union protections, corporate board equality, Social Justice / Equity, and many other programs will soon return. 

What is about to happen is going to shock the far-left. Printing money, QE, FOMC activities, fiscal policies changes, infrastructure spending, and lower interest rates could extend the dollar's eventual demise by a few years; however, the coming collapse isn't potential, it's a certainty. America owes a quarter-quadrillion dollars, enough money to stretch Subway sandwiches to Mars. 

What Apple and other companies will have to decide is if they will be forced to cut dividends, causing a further slide in equities as they continue to fight a war they cannot win.

If Trump is impeached, Senate ratified or not, the markets will further dive.  

Russia, China, Iran...will soon look next door for resources. When dictators think they can take something, they normally do. 

Edited January 4, 2019 by Microbio-glutonist