black monday part deux
so the $700B bailout plan was rejected today and the street flipped out. the Dow closed 777 points down, and the leader unfortunately was AAPL (down 17.4% to 105.90). i’m heavily invested in Apple through work and even with my own money, but i have to say, i’m really not that worried about it. here’s a few reasons why:
1. i’m glad the bailout plan failed. one thing i’ve learned is that when Bush is on the telly urging America to act quickly to save ourselves from disaster, then our response should be to move slowly and with deliberation. [Jon Stewart: Bush Bailout Speech Just Like Iraq Speech]
2. i’m long on AAPL. i’d buy more now if i had the money. today’s price drop was caused by analysts revising their estimates and basically saying that Apple would be affected by the consumer slowdown (surprise!). the slowdown affects everyone (like say, Apple’s competition), so i see the macro-environment as increasing the opportunity for Apple to extend it’s lead in various efforts. we’ve got $20B of cash reserves in the bank, and investors have been questioning why Apple doesn’t go out and make some big acquisitions. well, this is why. i’m hoping the price will stay low through december, when we make our bi-annual ESPP purchases.
3. i’ve got 28 years until i’m 65. this is a big dip, thanks to shitty republican leadership, but over the long-haul it will smooth over.
