Sunday, February 10, 2013

Apple And U.S. Public Debt

There really isn't a good reason why I pulled together the below chart showing Apple's (AAPL) stock price and the amount of U.S. public debt outstanding. Curiosity got the better of me and simply wanted to see how the two series stacked up. The graph scale is semi-log in order to graph the percentage movement in each series. Could it be that the explosive growth in entitlement spending has seen some of those dollars find their way into Apple products? With sequestration nearing at the beginning of March, further federal budget cuts may not be a benefit to Apple's stock price. In all seriousness, for chart readers though, just because two series have a high correlation, it does not mean there is causation...or maybe there is in this case!

From The Blog of HORAN Capital Advisors


1 comment:

Sam Williams said...

Apple seems like a stock that a lot of people have held for a long time. Would there ever be a reason to try the long collar strategy?
If you inherited a large number of shares and you wanted to protect yourself in case Apple goes down to competitors like Samsung or Google?