Does One Rotten Apple Spoil The Bunch?


Check out this video to get a better understanding of one of the biggest stocks in the market and what influence it is currently carrying out. 



Today I want to talk to you about something unique about a stock, about Apple. I don’t normally talk stocks individually but, typically, the markets and things like that. But Apple is an important stock. And if you haven’t noticed or you’re under a rock here, Apple has gotten destroyed. It’s down 40% from its highs. It was a trillion dollar company. It’s now by the $700 billion companies. It’s lost over $300 billion, $300 billion of market cap. That’s a big number. I think it is now third or fourth largest stock behind Google. So it’s important.

I’ve been talking for a while – on my radio show, in workshops that I give – about the risk in what I call the “fang stocks.” Or what is known as the “fang stocks,” the Facebook, Apple, Netflix, Google, all those types of stocks because they represented 70% of the total gains through July of 2018. That’s ridiculous. You had five stocks that were 70% of the total gains of the S&P at the peak of 2018.

So why I’m talking about this is that a lot of you own these stocks, or the indexes that you own, or mutual funds that you own, own these stocks and you probably seen your portfolio drop significantly. So even though we’ve had this large of a drop in Apple, again 40%, we’ve had the same happen again to the “fang stocks” between 25, 35 and 40%. And the thing that’s interesting is this is not unusual for Apple.

Believe it or not, in 2015 and ‘16 Apple was down about 33%. Back in 2012 and ‘13 Apple was down 42%. So, unfortunately, when markets are going up, we get what I call amnesia here. We forget about the pain that happened in 2000 and 2008, and we think these stocks are going to grow to the moon. And that just doesn’t happen.

So I wanted to share this with you because I want you to know there’s real stress in the market. And there’s going to be a lot of volatility. There’s going to be days when the market really rally’s and goes higher. I want you to be careful. Those are probably best times to reallocate the portfolio, to sell certain securities. And I will be talking more about this.

So if you want to reach out to me, give us a call. But I want to share this information with you and help you better understand the market and your portfolio.


Julie Reyes

Chief Financial Officer, Chief Compliance Officer

Julie Reyes is Chief Financial Officer and Chief Compliance Officer with Reyes Financial Architecture, Inc., a Registered Investment Advisory Firm specializing in portfolio risk management strategies, retirement income distribution and generational wealth planning. Julie is a Certified Public Accountant (Inactive) and a California Real Estate Broker. She also holds multiple licenses in the insurance and financial services fields. Julie graduated from Pennsylvania State University, with distinguished honors in 1997 and began her career with Price Waterhouse, LLP that year specializing in tax and audit. She became a California Real Estate Broker in 2002. Julie has worked with David and Reyes Financial Architecture since the company’s inception, and uses her financial background and expertise to help a wide range of clients protect their assets, minimize their tax liabilities and maximize their cash flow.

David Reyes

David Reyes is the Founder of Reyes Financial Architecture, Inc., a Registered Investment Advisory Firm specializing in portfolio risk managed strategies, retirement income distribution planning and social security planning. David works in collaboration with CPA’s, attorneys and other money managers to ensure that all planning is not only implemented but also integrated. This collaborative team approach seeks to ensure the highest probability of success.

David has been an advisor for over 20 years and holds multiple licenses and registrations in the financial, real estate, and insurance fields. David is featured in many magazines such as “Kiplinger Personal Finance Magazine,” “Boomer Market Advisor,” and is co-author of four books on estate and retirement planning. David’s latest book “The Little Red Book of Retirement” has recently been released. Currently David is working on a new book entitled, “Momma’s Secret Recipe to a Successful Retirement” with Jack Canfield. David advises many professional and public groups including CPA’s and Attorneys on retirement, taxes, estate planning, and asset protection. David is also the host of “The Retirement Architect Radio” heard every Saturday on 1210 AM KPRZ.

David is a distinguished graduate from UCLA’s Personal Financial Planning program and is a graduate of e Wharton Business School in their Retirement Income Planning Certification program. David has also been named 2015 Advisor of the Year by the National Social Security Association (NSSA) for his advocacy to educate retirees on maximizing their retirement income.

David and Julie have been blessed with three wonderful children, Morgan, Taylor and young David Reyes, III. David’s hobbies include Tennis, Church fellowship and spending time with his family.