Apple of Our Eye

Apple Computer came through with strong numbers again but clearly had cautious comments. Even in these tough economic times, Apple sold 6.9 million iPhones last quarter which on the face of it is enormous. What is more impressive is they outsold Blackberry. Can Apple alone keep us out of recession? There aren't many companies showing growth like them. Google is the other exception. Many companies are reporting numbers that beat analyst estimates but it is still All About The Economy.

In that light, most companies , including Apple and Google, expect a slower economy and an uncertain future. We are also seeing a slew of announcements about layoffs. The stock market may have risen on Monday, as expected, but the economic realities have set in and the markets swooned yesterday and will follow that trend this morning. As we have said in the past, don't get anxious to buy into the rallies. Be patient and buy quality. The recession is here and having strong liquidity is the most important position to be in. It is better to miss the run up in a stock than to run out of cash. New opportunities will always appear but one needs to have the resources to take advantage of them.