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The spaceship returning to earth: Sell your shares!

Image result for apple park

The hype around Apple seems to be slowing down. Probably the future of Apple never been in such a turmoil as it is now. This does not mean it is in financial trouble or something like that, quite the opposite.

Think of Apple as the most popular and wanted kid in high school, but now everyone else is moving on to college and Apple is no longer the only wanted fish in the sea.

But don't worry Apple, this means you are finally achievement adulthood! (Just a tip, I think it is also time for you to not worry too much about appearances anymore!)

Sales are stabilizing worldwide, and the China boom of the last years is also stagnating, meaning Apple can no longer sustain an increasing number of iPhone sales.

Apple's valuation has been suffered a big cut in its valuation in the last months, mainly since the time that decided to stop releasing sales numbers. Oh boy, the investors really didn't like that!

I am not a fan of the way the finance world works, everyone in that world knows that irrationality is innate but everyone still acts like they know everything and they can predict everything. 

It just hit me, maybe most of the finance people just think that finance is a superior social science. Oh wait that is true, I talked with so many fellow colleagues that just look down on sociology, anthropology, geography, etc, just because they are in Economics and/or Finance, such superiority complex is despicable and not helps in anything our world. 

I am talking against myself, not only I have an Economics Bachelor but also I am studying a Masters of Finance. Ironic right!? But I characterize myself as a more social Economist, I find the study of the human irrationality effect on economic actions so fascinating. That has been my main purpose to study Economics and Finance.

I went deep on this subject on my undergraduate thesis, where I try to explain more the causes of the 2009 crisis. The "bad" people I am describing here will tell you that the main cause was the subprime loans and bla bla bla, all of that is correct but it does not explain why the world got it so bad, mainly some countries in Europe, and for this, I tell you the cause was irrational actions. You can read my thesis here.

I have been deviating a bit from the main subject of this article!

In summary, investors can relax, they will still make tons of money with Apple. And Apple just needs to realize they are not the kings of the world anymore, and maybe if they really start to truly innovate in their phones their sales will increase. Or maybe not, after all, Apple product buyers are one proof more of customer irrationality and that everyone in this world just seems to be concerned with looks and prestige. 

The link to my dissertation: The Evidence of the '09 GIIPS Crisis

Stay with your thoughts

Disclaimer: I am generalizing but of course not everyone that works in finance is like this, and in other areas including economics there are people like that or worse. This is basically a very stereotypical view, which just represents my presumption and a slight level of arrogance towards a specific group of humanity. In any way that is my personality, but in this case, I am able to express my opinion better. And also this way you also leave this article doing deeper thinking about the subject and get to your own conclusion, and that is the most important. 


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