One Stock Proves This Market Bull Is Exhausted

One doesn’t have to look much further than one of the market’s most popular stocks to read the tea leaves that we could be on the verge of a slowdown in markets.

If you want the full “fear-mongering” bang for your buck, you can go back and read this piece I wrote about 48 hours ago, describing why I think the next market crash—likely already well on its way—is going to break the brains of a lot of market participants.

But yesterday, the inspiration to write about one example of this supercycle peaking came to me ever so delicately, as it often does—while I was frustratedly cursing out one of my home appliances. Because nothing says “we’re at the top of a stock market supercycle” more than a balding 42-year-old man, in the midst of his 390-square-foot apartment, screaming at an inanimate object made in China out of plastic.

Perhaps it is apropos that this name is one of the top names in the S&P 500 index and the NASDAQ, because its story provides a good analogue to the market overall—still generating cash and earnings but extremely aggressively valued while at the same time not showing any clear pathway for a reasonable bull case going forward.

Not unlike the tech sector as a whole, it’s difficult to map out where the next “killer” piece of hardware or software is going to come from. How will this company grow revenue again?

Because of not only its popularity but also its inclusion in almost any ETF you can imagine, the adage of “so goes this one company, so goes the market” has never seemed more appropriate than right now.