It is amazing the types of contrived sound and fury we hear on the financial news each day, not to mention the conspiracy theories of all those who love to short the market come up with, yes some are purely delusional, others are market makers and have a stake in the game, while still there are those who make it up as they go for the occasional prime time financial news sound bites. Okay so, let’s discuss all this and what it has to do with the price of rice in China or the stock prices on the NYSE, DOW, or NASDAQ shall we? But first a quick story of something I heard on TV not too long ago.
I’m sorry but I couldn’t keep my mouth shut after I heard the man at Market Watch tell me that Apple will get $ 2000 per share in mid-2014 – “Oh, for Pete’s Sake, give me a chance!” I shouted into the living room! Do you know what that means? That would mean a market cap of something like $2 Trillion, which I might remind you no company has ever achieved, in fact, no company has gotten to $1 Trillion yet. See what I mean?
That kind of reminds me of CALPERS (California Teacher’s Pension Fund) whose brilliant economic forecasters called the stock market to hit 96,000 points by 2075 and as long as everything kept going up at that rate, they’d all be fine. Are you kidding me? No wonder all the large government and corporate pension funds in the country are so messed up and underfunded to the tune of 10s of billions of dollars. Who comes up with this nonsense anyway?
Okay so, what is the moral of the story here you ask, I mean why did I bother to write this article anyway? Well, it’s because I see far too much senseless dribble out there and really bad stock picking advice. No, it’s not that I have anything against Apple – the stock has done well, decent earnings, good growth potential, and all around nice going so far.
But to project a continued hyperbolic curve to $2000 a share, well, I just have to ask you what are these people smoking, further, if you are going to play the stock market use your mind and if you are smoking something, stop! Please consider all this and think on it, because otherwise you are just going to be throwing away good money I say.