Archive for January 4th, 2019

Whew! At least I don’t own Apple stock…

January 4, 2019

Ouch: Make that: I don’t own Apple stock directly.
==============

Except for a couple of legacy stocks, I shy away from individual company stocks.

My history has been dismal when I’ve tried to pick individual stocks. I either buy at the peak … or, hold winners until they become losers.

So, my equity investments tend to be in broad market ETFs and low-cost mutual funds.

I used to think that they insulated me from wild swings in individual stock prices.

If true, yesterday’s steep drop in Apple should have been lost in the round.

Not so, as evidenced by the hammering that the Dow and S&P took yesterday.

One analysis I saw indicated that Apple was directly responsible for over 15% of the Dow’s decline … and indirectly responsible for the rest … either by dragging other tech stocks with it, or by seeming to be a leading indicator of economic troubles ahead.

image

For example, consider the SPY ETF…

(more…)