D&D Note (3-19-2012)
Apple dividend is $2.65 on July 1st. $10 billion in stock buybacks over 3 years. Total of $45 billion used of their $98 Billion.
None of this is using their cash stored off shore – and with record iPad sales (again) a lot of this could potentially be money earned this year!
The movement in High Yield Bonds seems to be telling us that infact a correction is coming. Their divergence is a preliminary signal that equities will follow.
Plus classic case where S&P is hitting multi-year highs and the VIX is touching multi-year lows. As Rodney Dangerfield’s character in Caddyshack would say “everyone’s buying? then sell! sell!”
Time to start moving to cash, focus on global equities that are correction resistant. Defensive high yielders like beverage/alcohol, tobacco, and food look good.
Gold is a good hedge for any headwinds coming like Iran. I’m still bullish on the semiconductors and storage equities – but wait for a pullback.
It will be interesting to see how stocks like Apple fair in a correction, especially now that they are going to offer a dividend ~ can we say Tim Cook might have a hunch whats coming up as well?
Jobs might have been the product visionary, but Cook looks to be a capitalism visionary.
D&D Investments 
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