The Status of Apple as an Investment

Well everyone missed the boat when Apple was sitting at $120. I don't think Apple will stay at it's current level and continue to rise. In fact, Apple will likely fall a little again but not to the $120 level. I would look for Apple to fall back to the $160 range before rocketing up to the $200 plus levels for the holiday season.

Apple is a great company and is constantly innovating. Some of their products may seem like they are reaching their market penetration levels and won't increase profits for the company at the same rate. The truth is that you can't look at normal market penetration patterns with Apple because they seem to change the market each year and I don't expect that to change anytime soon.

Apple will climb above $200 eventually and will likely hit $300 at some point in the next couple of years. The iPhone has had a major impact in the smart phone market and eventually it will be open to other phone networks which will increase it's market share even more. There are rumors of a small tablet computer eventually being launched that could become a staple in pocketbooks and backpacks everywhere. Computer sales have really been the driving force of Apple's stock price for quite sometime and are really on the back burner of the news when it comes to Apple and it's products. Apple's computer market share is constantly growing and as more and more people become comfortable with Apple and it's other products lines, the switch to an Apple computer will become a much easier obstacle to overcome.

The outlook on Apple as investment is looking great in the long term. You will have to be able to withstand the drastic ups and downs though. It is not uncommon for Apple to sway 30 points in one direction or another. If times properly there are some great opportunities for profits if you can sell high and buy low. That strategy is not for everyone and you really need to be able to react quickly to market changes. If you're looking for a great long term investment I would put a position in Apple today and another position if it drops down even further from here. Don't feel like you need to sell when it spikes a little as well, it will drop and you will feel like you missed out temporarily but it will always bounce again and push even higher.