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. 

 

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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.