Poll: Is the Economic Downturn Going to Hurt Apple?

I have been investing heavily in AAPL lately because it appeared to be at a fantastic discount.  I also speculated that the negative sentiment about the economy wasn’t going to have a material impact on AAPL’s bottom line because I felt much of their products fell into the ‘comfort purchase’ category (like music, iPods, etc.) and they booked a lot of back to school sales which will not be impacted that much (hey, these people are going into debt in a big way anyway).

When I finally got a chance to check the markets today, I was a bit shocked to see that not only had the financial stimulus put forward by congress not created a positive spike in the market, but a slew of downgrades of AAPL sent its stock spiraling.  I checked by stock balances, and fought the urge to hurl.

I decided to spend a bit of money to use the Facebook polling feature to determine if I should continue to dollar-cost-average down now, or wait until later.  You might ask why I don’t just look at the analyst reports: IMHO financial analysts are the most useless people on the face of the earth (do I need to explain more)?  You can see here the results of the poll…

I was quite disappointed to see that there was a significant number of respondents that were changing their purchasing decisions due to the economic downturn.  You can see that the same number of people that said they were going to purchase an Apple product in the next 3 months said that they had put aside plans because of economic uncertainty.

So it appears that at least one of my assumptions that I used to invest in AAPL this time was shot to hell.  As a result, I am going to wait and see where the bottom is, and buy a lot of TUMS to handle the stomach acid in the interim.


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