Apple Mania

A headline-seeking analyst put out a target price of $1,001 on Apple shares  this morning. If you ever needed evidence of a bubble, then here you are. And of course Apple is up big, because of course it is going to make everyone rich. Sigh. Tell me another one, Scheherazade.

This is one for the “What were they thinking?” file. Actually, I know what they are thinking and the best way to explain it is the story of the two guys who go hiking into the Alaska back country. As they get out of the truck and pick up the gear, one of the guys looks at the other one and says “I see you are wearing running shoes.” The other guy looks at his feet and says, “Yup, there are bears around here and I might need to get away.” The first guy looks at him and responds “You can’t outrun a bear, they’re too fast.” “Yes, I know that,” he says. “But I don’t have to outrun the bear, I just have to outrun you.” That’s what the traders are thinking. When the turn comes, they’ll be first out of the door. Good luck with that, the door will be real crowded.

Extrapolating Apple’s rate of ascent since the first of the year (about 0.5% per day) would give a price of $1,000 by early June. Just saying.

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