In Search of the Perfect Investment

Apple has dropped 10% below its high, and broken my trendline.

So have other tech stocks, like Priceline:

So has Google.

So did Netflix, Amazon, Baidu and Rackspace.

The Internet is abuzz with a thousand reasons for the falls. Collectively, they add up to — They are what they are. (Heavy philosophy?)

Will these high-flying tech take the tumble that they did in early 2008?

There’s no way to know. The stock market is unpredictable. (So tell me something I didn’t know.)

Hence, we need to invoke our Inviolate Stop Loss Rule:

Apple has  fallen 10%. Get out.

On the other hand, you could read (and believe) some of the ulltra-positive blogs being written about Apple’s upcoming announcement of its first quarter earnings. One blog is headed “Apple’s Monster Quarter — The Sequel”

Says the blog:

For the 13-week period ended March 31, 2012, I am estimating reported revenue of $44.028 billion and earnings per share of $13.15, representing anticipated revenue growth of 78.49% and eps growth of 105.47%.

So which do you believe — sell or hold? Your choice.

Personally I’m tempted to believe. But hope is a really awful investment strategy.

The Wall Street Journal also weighs in with an Apple piece this morning. Click here.

Crowd-funding is the new way of raising money. You have an idea for a new product. You can raise money from your family, your friends, your credit cards, angel investors, venture capitalists. Or you can go to a crowdfunding web site like Kickstarter.

Think tech is dead? No way. Check out this incredible programmable, Bluetooth-enabled “watch” a bunch of inventors are raising money for on Kickstarter.

The kids have already raised $3.5 million. I won’t spoil your fun. Go to Kickstarter and watch their video. Click here.

Then kick yourself that you didn’t think of this brilliant idea.

The ultra-nice thing about crowd-funding is that you don’t give up any equity. You’ll lose 5% in fees to Kickstarter. But that’s trivial.

Favorite recent New Yorker cartoon.

Always keep asking
A man doing market research knocked on a door and was greeted by a young woman with three small children running around at her feet. He says, ‘I’m doing some research for Vaseline.

Have you ever used the product?’

She says, ‘Yes. My husband and I use it all the time.’

‘And if you don’t mind me asking, what do you use it for?’

‘We use it for sex.’

The researcher was a little taken back. ‘Usually people lie to me and say that they use it on a child’s bicycle chain or to help with a gate hinge.

But, in fact, I know that most people do use it for sex. I admire you for your honesty. Since you’ve been frank so far, can you tell me exactly how you use it for sex?’

The woman says, ‘I don’t mind telling you at all. My husband and I put it on the door knob and it keeps the kids out.’

Harry Newton who finds Claritin is helping his hayfever. Or maybe the season has ebbed. Other suggested solutions (in case you’re still suffering) include Sudafed, Fluticasone Propionate Nasal Spray.a Neti Pot, and my old standbys — airconditioning set to cold, heavy, sweaty exercise and washing my face with cold water. the next (and worst) hayfever season begins August 24. Start taking Claritin around August 19. They take five days to kick in.