AAPL hypothesis

DJIA gets whacked if AAPL reports poor earnings .


Interesting point. However, the term “fund managers” needs to be clarified. Anybody can call themselves a fund manager. There is a big difference between institutional and retail investors holding AAPL. One should never have to sell “every other stock they own to keep any one position. On the institutional side, most PM’s ensure proper Greek ratios are maintained at all times. There are catastrophic or black swam moves if you will that are virtually impossible to quantify. This is a momentum trading environment that requires proper human capital and due diligence by implementing strategies that work in a highly volatile, event driven market place.

You might be right. AAPL might have “disappointing” earnings. I don’t rely on the “street’s” estimates as my benchmark as great deals of those individuals lack the capacity to determine what AAPL should have reported. I would love for them to “miss” earnings to increase their intra-day volatility. APPL is clearly trading well below book value as they will be around $730-$750 at the very least going into 2013. I’m not worried about investors with significant long positions in AAPL. Whoever is short in the medium to long term really should take up a new profession.