F. J. Taylor

The Screws Tighten on Apple Investors

There are a number of things to remember about Apple - first is that it is just beginning to regain its once dominant role. These articles show what is starting to happen everywhere, in both business and personal use:

www.appleinsider.com

'Huge demand' forces O2 to pull plug on iPhone 3G pre-orders
O2 began taking pre-orders for Apple's new iPhone 3G through its website early Monday but was forced halt the service just hours later as UK consumers flooded the carrier's servers and quickly consumed initial supplies.

German publisher drops 12,000 PCs for Mac
One of Germany's largest newspaper publishers will become one of Apple's largest-ever customers when it converts all of its 12,000 computers from Windows systems to Macs. Also, the latest beta of Flash Player 10 promises to boost sluggish performance with Apple computers.

Multiply this trend world-wide, and factor in Asia (as FreeRange mentions above), Apple's huge bankroll (18 billion and rising), excellent products and strong following, and you see a world growth that will off-set the market declines that are almost inevitable.

Will a market crash occur? IMO, indubitably. The economy is in deep kimchi at this point, due to a number of factors. Will it be world-wide? Almost certainly, as we are all bound together now, like it or not. Will it be long, deep, and painful? Again, almost inevitably.

As to stocks in general - my advice would be to stay out of most - but as with all declines and even crashes, good, solid, stocks with good potential are the ones to be in. You pick the one with the most potential and best fundamentals, and buy when it is low. Aside from the "basics of life" stocks (food, water, etc.), there are few I would recommend - Apple is one of them.

As to Mr. jesselivermo's comment - I hardly think Apple is "over-hyped" - his comment smacks of a disgruntled PC fan, though it is true that nothing is immune from the coming storm.

I have Apple, which has more than doubled since I bought it and plan to hold it. (Note: I did sell enough to cover my investment when it was higher, so I am now playing with "house money" - something I always advise when investing or gambling - both of which share similarities.)