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Morning Commentary

Ride a Painted Pony

By Charles Payne, CEO & Principal Analyst
9/20/2019 9:35 AM

What goes up must come down

Spinnin' wheel got to go 'round

Talkin' 'bout your troubles it's a cryin' sin

Ride a painted pony let the spinnin' wheel spin

Blood Sweat & Tears

Talk about spinning your wheels, the market continues to bounce around a very narrow range.  Investors are trying to understand what’s going on, what might be happening and what the next catalyst could be for major indices are to clear the hurdles of new highs.   The S&P 500 closed unchanged yesterday with six sectors higher and five lower.

S&P 500 Index

+0.00%

 

Communication Services (XLC)

+0.10%

 

Consumer Discretionary (XLY)

 

-0.27%

Consumer Staples (XLP)

 

-0.02%

Energy (XLE)

 

-0.26%

Financials (XLF)

 

-0.46%

Health Care (XLV)

+0.47%

 

Industrials (XLI)

 

-0.51%

Materials (XLB)

+0.17%

 

Real Estate (XLRE)

+0.33%

 

Technology (XLK)

+0.22%

 

Utilities (XLU)

+0.47%

 

Portfolio Approach

We haven’t added news positions, but we have reiterated several open positions and think current entry points are very attractive so make sure to contact your rep or research@wstreet.com.

Communication Services

Consumer Discretionary

Consumer Staples

1

2

1

Energy

Financials

Healthcare

1

1

2

Industrial

Materials

Real Estate

3

2

1

Technology

Utilities

Cash

3

0

3

 
Today’s Session

While the media celebrates the iPhone 11, I think this is a great time to remind individual investors not to  take their investing cue from local news.  It’s always better to be part owner of stuff the masses are going nuts over (although not sure that’s the right description for the new Apple (AAPL)smart phone, which has a great camera but probably benefits more from elongated replacement cycle) not just another consumer.

In the early summer days of 2007, everyone was pumped about the new iPhone, which was a true global event.

I had a conversation with my niece that I had with so many others back in the days leading up to the unveiling.  “Why not buy a cheap smart phone and take your $599 and buy Apple stock?”

She pondered it for a few nanoseconds, and then kissed me on the cheek saying, she had to get down to the store and get in line.

IPhone on sale June 29, 2007

Apple Share Price

My nieces $599 would be $6,413 today, which means she could get the most expensive version of the newest phone and still have five grand left over, presumably to buy AAPL shares with.

A $5,000 investment would be worth $53,528, which is enough money to help cover college tuition or a more golden retirement.

Apple Stock Since IPhone (see arrow)

https://www.tradingview.com/x/SOxZXxJS/

 


Comments
VERY IMPRESSIVE, GREAT WAY TO SEE HOW AN INVESTMENT ACTUALLY WORKS. BEING PATIENCE PAYS A GREAT PRICE

PHILIP W. DAVIS on 9/20/2019 10:58:05 AM
Hi.
I'm concerned about the fact that the Fed has had to inject billions into the overnight lending market for 4 days now. What's your take on that?

Marcelo Montecinos on 9/20/2019 10:58:42 AM
Charles - I have the same problem with our grand children about these type of financial problems. The good news here is that they are starting an economics-financial class that kids have to take starting in the 8th grade through high school. Long over due!!

William S. Brown on 9/20/2019 11:37:59 AM
Great idea, but you have to invest in new technology. You need to buy an iWatch to keep up with the world. My 65-year-old brother still has a flip phone. It's over. He's lost. He'll never going to know apps. You can't give up on investing your brain into technological advancements. Unless you want to get off the ride.

Mike Woods on 9/20/2019 12:17:26 PM
Except that, if people followed Charles' advice , the stock would not go that high... You have lost that debate...

Andrew B Newallo on 9/20/2019 12:53:30 PM
Ha! The masses will be the masses and most will be spenders and not savers and fewer investors so anyone that wants to be more of the latter will be way ahead of the game. Of course there are many times when we can all buy the product and become part owners of the stock as well - which is something everyone should consider. Pay yourself. #UnstoppableProsperity.,

Charles Payne on 9/20/2019 12:58:15 PM
Charles, thank you for always telling the FACTS, and putting a learning on the so called analyst and other people pushing a fake RECESSION depression. Now that you are a #1 financial show & #1 author Unstoppable PROSPERITY, have you been approached by Tim Cook, or someone else who is buying TALENT to make programming on Apple TV STREAMING, you could even use fir a show weekly , audition from grandkids on Apple arcade, esports, stadium championships with viewer and paid attendance that surpasses our The Super bowl . If you want a few show ideas, we can help, but your manager will and should get you a great contract deal for Apple TV STREAMING content. Thank you Charles PAYNE & FBN. Thank all VETERANS and EVERYONE who voted for president Trump.

Ed on 9/20/2019 3:29:07 PM
 

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