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Apple and ginormous mob stress disorder

In the mass psych article I deliberately didn’t include markets - the holy barometer of mass psychology!

I could rant and rant on the markets rallying on lack of macros except that its a game of Keynesian beauty contest. But then again, why bother if it works!?

May be that’s the stuff for some other post.

Lets talk about Apple Computers,

The stock is the most valuable company ever. That’s not an excuse to deride it after all every record is meant to be broken. The reason it deserves a look is because Apple is currently valued at more than the entire retail industry and semiconductor industry. Its few percent ups and downs create and extinguish market capitalization of several companies. 

To put it in perspective, this one company alone is worth about one-third of the Indian GDP. If Apple were to be an Indian stock, it alone would comprise more than half of the trillion dollar Indian market cap.

Apple Computers market cap is bigger than the GDP of Switzerland and all the countries except the Top 20 biggest economies.

But But .. why is this move from July 25 lows to present price levels of 660+? [Just to note it has added close to $80billion in market cap in less than three weeks! That market cap addition is equivalent to roughly the entire GDP production of India in three weeks.]

Now, why? All because of the rumor of the release of Iphone 5. Yes, just a rumor.

I am not sure if the basic maths sounds ginormous. Tower of Babel would be an apt description but what the hell, who are we to judge. 

I can get over the feeling that we have been here before. The times when individual companies were larger than they ever should be. Two gadget freak of a company is been given valuations way beyond it may be able to sustain.

Hey, its got 100yards in cash! Not sure how to interpret this stuff but it will sure be fun to watch.

And when the tide turns we will know who, the buyers of Apple stock or the stone pelters in Mumbai were stupid mob! My guess, both of them.

Related: Of mobs, mania and delusions in recent weeks

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