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|