On $AAPL and the Budget

May 23rd, 2011 · 104 notes · #apple #$appl #stock #foxconn #explosion #economy

If you keep up to date with finance news, you’ve been hearing a lot lately about how spending is out of control and we need to fix it. There is a way - an easy way actually. The solution is to cut spending on two huge chunks of our budget: national defense and social security. Financial analysts and banks have been pushing for a notion since April. 

Unfortunately however, no politician wants to step up and bring up the topic of cutting spending on our national defense and social security. These politicians see it as a death wish - a way of saying “I don’t want to be re-elected”. MSNBC’s Jim Cramer said the economy will be going nowhere but downward for the next couple of months, even if someone speaks up about the budget. “Hold on,” he said.

As this news has become more prominent, I’ve watched $AAPL go -13%. At one point I had a gain of +15%. Though my bank account says otherwise, I’ll be keeping my eggs in the basket and staking this one out, despite the news today about an explosion in one of Foxconn’s buildings. 

I believe that Steve Jobs and the rest of the executive team at Apple can handle PR situations like this, as they have shown before in the Foxconn working conditions crisis. I also believe that Apple can separate themselves from the rest of the stock market, at least partially away from this economic bump and into positive numbers, as they have shown before during the stock market crash of 2008.

Hold on to your hats apples.