During the first half of the 2012, Apple could be described as none other than a bank. A Bank in which investors’ money was safe and offered a high rate of return. For some time I have been leery of Apple, not because the company doesn’t differentiate itself as one of a kind, rather, more headwinds are outshadowing the once strong tailwinds. As I spoke of recently in the article Apple Finally Challenges Itself, the future of Apple remains more questionable than ever before. I seem to be in the minority on this subject as the stock price soars higher and higher. From an investor standpoint, I believe the best step to making a calculated decision with Apple is to follow the pack. Being aware of my previously mentioned bearish sentiments will head you well as we round the 4th quarter, but nothing stands between us and a revolutionary product launch. The investing populous believes wholeheartedly in the Apple platform, scoffing at those that attempt to replicate or recreate it. As the recent court case concludes in Apple’s favor, the legal system also belives that the Apple products are truly one of a kind, and will not allow them to be replicated. This all results in the Bank of Apple reopening its doors and giving bank members a one-of-a-kind banking experience.
I often get caught up in looking too far ahead, as I did in my article linked above. What the market currently desires of Apple it is receiving handsomely. The hope, the potential for another revolutionary product, propels the stock higher. Looking back to last year when apple disappointed investors with a mediocre product, the iPhone 4S, the stock sold off hard. This time around, we expect a revolutionary iPhone 5 and we, the Apple-addicted populous, will get nothing less. Yes, Apple faces numerous headwinds in the coming months. Yes, Apple is challenged with launching a premium smartphone that will have to remain premium for the next 2 years. Yes, Apple may fail to win over tech heads with all of its products to be launched this year. Though the market currently loves Apple, like a fat kid loves cake, like Steve Jobs loved LSD (do your biography reading bro), so as I learned the hard way, don’t fight the trend and sign up for the Apple bank.
Photo by Sean MacEntee