Friday, February 22, 2013

Weird's Deep Thoughts: The Shift From Apple To Google Is Part Of A Much Larger Economic Development




From BI:Google is the new Apple. Well, not necessarily, but while Apple's stock continues to grind lower, Google's stock is on a tear.  And now analysts are jumping over themselves to get more bullish on Google.  Just yesterday, two separate analysts put $1,000 price targets on the stock.

What gives? Well, of course people can make up all kinds of stories about the momentum of either company, and their products and so forth.  But there's a bigger macro-market story as well. Throughout recent years, Apple has basically been an asset class on its own: Gold, commodities, stocks, bonds, and Apple.  If you were in Apple, your portfolio did great. If you weren't, you almost certainly lagged the market. End of story.

At a time when people were uncertain about markets, Apple was a solid store of value. A company growing at abnormal speeds at a good price. Even if the economy were to slow, there was Apple, which you know would still be crushing it.  But things have shifted in recent months…..

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