Apple’s Institutional Slingshot: Rational Explanation Of Irrational Stock Action – Seeking Alpha: “As this slingshot terminology has morphed into mainstream vernacular, we’ve noticed that some still fail to understand the underlying forces that produce the slingshot action. Let’s begin by explaining what the slingshot is not. The Apple slingshot is not a hedge fund conspiracy. It is not caused by any of the negative rationale that you may hear in the media, which includes the underwhelming launch of Apple Maps, the lack of innovation from Tim Cook, iPhone 5 supply constraints, iPad mini cannibalization, Samsung (SSNLF.PK) competitive threats, the earnings miss, and of course the absence of Steve Jobs. To the uninformed, these variables sound reasonable enough to support a selloff, but to those who understand Apple’s historical stock precedent, these reasons appear to be nothing more than noise. Seasoned Apple investors know there is more to it.”
(Via. seekingalpha.com)
Everyone crying about Apple’s stock drop over the past few weeks needs to read this. It’s cyclical, and it’s temporary. And, as I’ve told many people lately, it’s a good time to buy.
