How Do You Predict the Stock Price of Apple?


Quick Answer

At least in the short-term, no one can reliably predict the future performance of Apple or any other stock, says U.S News and World Report. Events regularly contradict stock predictions from respected Wall Street analysts such as Jim Cramer and Professor Jeremy Siegel.

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Full Answer

Although short-term stock predictions are not very useful, Apple's long-term prospects are promising, argues Investor Place. This tech company consistently exemplifies intelligent management and fiscal responsibility. Investors shouldn't base their investing strategies around the movements of Apple stock or any individual stock, advises MarketWatch. Wise investors focus on buying and holding index funds, mutual funds and index-style ETFs. This investment wisdom achieved widespread acceptance with the 1973 release of "A Random Walk Down Wall Street," a financial book by Princeton professor Burton Malkiel.

Mutual fund investors achieve greater success if they use long-term strategies, says InvestorGuide.com. These funds work best for people who invest consistent amounts, year after year. Since mutual funds are comprised of many individual stocks, mutual fund investors are largely protected from the uncertainties associated with any particular company. If Apple's stock collapsed overnight, for example, this would cause manageable problems for most tech-stock mutual funds. The same event might cause insolvency for an individual heavily invested in Apple stock.

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