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How To Tell When Apple Will Bottom

E.W. Barnaba profile picture
E.W. Barnaba
104 Followers

Apple's (NASDAQ:AAPL) stock is one of the great successes in the history of the markets. But its price has been in decline for roughly two months, seemingly falling as easily as it rose.

There have been countless articles written about this decline and why it either is or isn't warranted. However, while most of those articles scrutinize the details of Apple as a company to predict how low its price will go and what it may or may not be worth in the future, many of them overlook Apple's role as a stock in the broader market.

As such, I think that the near-term future of AAPL has very little to do with the long-term outlook of Apple. Mr. Market is - at his core - an irrational man. And looking at Apple's spectacular rise through the lens of that irrationality is the best tool to help predict the depths to which it will fall.

A Psychological View Of The Markets

I'm not going to discuss the numbers regarding Apple's valuation, its recent earnings, its future earning, its margins, its dividends, its balance sheets, its market-share, its product's prices, or even its sales. In fact, I'm not going to discuss very many numbers at all. At least not in the typical "fundamental analysis" sense.

But before my readers think that I'm advocating a total ignorance or discounting of fundamental analysis, I should clarify. The analysis of a company's financial fundamentals is crucial to any investor's decision of whether or not to buy shares of that company's common stock. But fundamentals - although driving the lion's share of a stock's performance over time - don't tell the entire story.

Stock prices don't move up and down because a company makes more or less money than it did before. Stock prices move up

This article was written by

E.W. Barnaba profile picture
104 Followers
Just an individual investor trying to outsmart the market.

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