Friday Charts: Real Estate Recovery, Rotten Apple and Dividends
Thank goodness it’s Friday in the Wall Street Daily Nation!
This is the day we abandon long-winded analysis, and let some carefully selected graphics do the talking for us.
That means less writing for me… and less reading for you. But don’t let our brevity fool you. Most subscribers tell us this is the most insightful and useful column we write each week.
Yes, picture books can be educational for adults, too!
And here’s the latest proof, as we serve up a few timely charts on Apple (AAPL), the future of residential real estate prices and boring old dividends…
Down Goes Apple
Saying “I told you so” is childish. But… I told you so!
You’ll recall in April 2012, just prior to becoming the biggest company in the world, I predicted that Apple “can’t keep growing at its current breakneck pace.” I reiterated my stance in July 2012.
And guess what? Apple isn’t growing that fast anymore.
The company reported its results after the bell on Wednesday. And its quarterly revenue growth rate dropped below 20%. Worse still, its quarterly profit growth rate flatlined.
Bottom line: As Apple’s growth slows, look out below!
Boring, But Better
It’s time for some Aretha Franklin-style R-E-S-P-E-C-T for dividend stocks.
I know… they’re totally boring. But they deliver where it counts – to our bottom line.
Here’s the latest proof, courtesy of BlackRock…
Bottom line: Dividend stocks are truly all-weather investments. Whether it’s a bull market or bear market, they outperform.
Of course, this profound truth is precisely what prompted us to start Dividends & Income Daily last year. If you’re not onboard already, hurry up and join us on the max-yield hunt by signing up here.
It’s All About Supply, Stupid!
When I first declared that the real estate market had hit rock bottom, I told you that prices would be the last fundamental to recover.
Well, guess what? Prices are rising.
On Wednesday, the Federal Housing Finance Agency said that its House Price Index rose again in November.
Will the increases continue? Yuuuuup! And here’s why…
As you can see, the number of months’ worth of existing home supply keeps dropping.
Bottom line: Shrinking supplies plus increasing demand from new household formation equals higher home prices. Bank on it!
And if you want some specific ideas on how, check your inbox next week. I’m going to share at least five overlooked ways to play the real estate rebound.
That’s it for today. Before you sign off, though, do us a favor. Let us know what you think about this weekly column – or any of our recent work at Wall Street Daily – by submitting feedback, leaving a comment below, or catching us on Facebook or Google+.
Thanks and enjoy the weekend!
Ahead of the tape,