Why has Apple stopped going up?

Linton

ZingPowZing said:

Prism said:

ZingPowZing said:

Prism said:

ZingPowZing said:

cloud_dog said:

coastline said:

GeordieGeorge said:

ZingPowZing said:

Aapl is 30% of my portfolio -  even less if I include my £ assets outside the stock market.

That is very, very bold. Some people would go so far as to call it reckless. Hopefully you’ve been in it for a while and have enjoyed the ride up.

Haway man Geordie hes ganna be areet in the lang run..

Don't worry, I'm sure ZPZ has got another 3 or 4 companies to spread the risk that will keep growing.

Now you mention it, cloud dog:
https://forums.moneysavingexpert.com/discussion/6037441/zingpowzing-v-bowlhead-challenge

But, of course, when the biggest company is hit, it will drag down the whole market. 
Be careful what you wish for.

A nice big crash with be a lovely thing. 

If you don't care about the fallout:- millions thrown out of work etc.

But, that aside, the people clasping hands for a big crash tomorrow are generally in the same attitude as last week and last year - sooner or later they're going to be right but don't dismiss the long-term opportunity cost of that strategy, even if they have to.

A stock market crash and an economic crisis are not the same thing. The stock market can crash quite happily on its own when valuations get ahead of themselves and interest rates begin to go up.
Historically wider pain following usually, though. It doesn't happen in isolation.  Would probably impact someone you know.

There is no long term cost of wanting some lower prices in the stock market unless you are sat in cash waiting for it.
Does that mean money you have waiting to invest in the stock market is invested in something realising better returns already? In that case, why are you even watching the stock market? 

A crash is not something to be wished for.

Whether you wish for a crash or not is irrelevant. It is going to happen. This applies both to individual shares as much, or more so, as it does to the overall market. The main purpose of an investment strategy is to achieve one’s objectives given that environment. Nearly as important is to ensure that you avoid stress even if your investments are vital to your future well-being.

Your current strategy may or may not achieve the first purpose, it clearly is not achieving the second if you are twitching because of a minor wobble in one share. Perhaps a rethink is appropriate.

Apodemus

TheAble said:

If you're in it for the long term you should hope for lower prices. Works for me 🙂

Only if you are continuing to buy.  I'd prefer a consistent P/E ratio and consistently rising earnings for any long term holdings. 

NeilCr

Personally, if I were you I'd seek advice..
I can recommend someone -  @dunstonh

🤣🤣🤣

More seriously, as @linton says it is about avoiding stress. One of the reasons I use an IFA as it happens. She is very good at calming my fears etc 

thickasabrick

Definitely can't time the market.

Making adjustments to my pension portfolio preparing for drawdown.  Started the process last Wednesday to switch from Vanguard LifeStrategy 60 to Vanguard FTSE All-World UCITS ETF (VWRL) to take advantage of the fee structure with my SIPP in Fidelity.  Finished with purchasing VWRL yesterday.

This morning checked the transaction had completed and it's dropped "a little bit".
Headline "US stocks slip from record highs".
Yes, we know. It's a surprise !
Every time it happens !

The reasons for choosing VWRL haven't changed so I'll be sticking with my strategy.

eskbanker

thickasabrick said:

Making adjustments to my pension portfolio preparing for drawdown.  Started the process last Wednesday to switch from Vanguard LifeStrategy 60 to Vanguard FTSE All-World UCITS ETF (VWRL) to take advantage of the fee structure with my SIPP in Fidelity. 

[...]

The reasons for choosing VWRL haven't changed so I'll be sticking with my strategy.

At the risk of veering off-topic for this thread, what is your strategy and your reason for choosing VWRL?  Using ETFs instead of OEICs can have minor cost benefits but they'd be massively outweighed by the leap up the risk scale from 60% to 100% equities, which seems an odd move when preparing for drawdown....

edgex

https://www.thestreet.com/apple/news/can-apple-stock-shake-off-post-earnings-softness-this-week

There's also the Epic Games case, & the EU have opened investigations into the App Store rules.
https://www.vox.com/recode/22412725/apple-fortnite-epic-antitrust-court-case

thickasabrick

eskbanker said:

thickasabrick said:

Making adjustments to my pension portfolio preparing for drawdown.  Started the process last Wednesday to switch from Vanguard LifeStrategy 60 to Vanguard FTSE All-World UCITS ETF (VWRL) to take advantage of the fee structure with my SIPP in Fidelity. 

[...]

The reasons for choosing VWRL haven't changed so I'll be sticking with my strategy.

At the risk of veering off-topic for this thread, what is your strategy and your reason for choosing VWRL?  Using ETFs instead of OEICs can have minor cost benefits but they'd be massively outweighed by the leap up the risk scale from 60% to 100% equities, which seems an odd move when preparing for drawdown....

Plan to move my workplace pension to Fidelity SIPP as cash so I end up with about 30% non equity.
Workplace was 100% Scottish Equitable Overseas Equity Tracker Pension Fund (GB00B046S109), switched 50% cash so sitting around 13% non equity now with the remainder planned for later in the year when no longer contributing.
Will have to see how my tolerance for the increase in risk from 60% equities goes.

tichtich

benbay001 said:

'If on net you're a net buyer of stocks, you should definitely be wishing for a market crash."
Except that wishing for it won't make any difference to whether it happens.
That said, I can't deny that I'm secretly hoping for it (as a new investor).

"If you go into Tesco and you see everything is half the price despite being fundamentally the same apples / milk / toilet roll, are you happy or sad?"
50% deflation? Love it! (I have a fixed annuity. ) Not so good for people with debts, though.

DairyQueen

ZingPowZing said:

This messes with all my retirement projections but, more importantly, influences the whole investment climate, so potentially bad for everybody!
Below $127 and no sign of a floor. 

The share price of a single company is not capable of influencing 'the whole investment climate' - even one as large as Apple. Companies respond to local/global economic and social influences, not the reverse. Most investors are sufficiently diversified not to lose any sleep over a drop in global markets, let alone a single market or stock.

The US market is facing major inflation headwinds. Joe Biden recently announced a large corporate tax increase (and income tax/CGT rises for the wealthy). There are problems with supply chains, and a shortage of commodities, in particular of semi-conductors. It's old news that the Democrats are unhappy about the 'monopoly power' of the giant techs and it's possible that lawmakers may act. Add to that, the US market, specially FAANGs, has been on a sharp rise for several years. A correction wouldn't be surprising.

If I was as concentrated in US technology stocks as you I would hang on every word uttered by Jerome Powell and Janet Yellon, and would be interrogating US economic and political news very closely indeed. I would not need to ask such a question of a random group of Brits.

Ms Yellon's comments of earlier this week stated the blindingly obvious but it would seem they were sufficiently surprising to enough investors to precipitate a small sell-off.

In 2000, Apple was trading at $150. By 2002 the price had dropped to $13 and took several years to recover. Microsoft took even longer (over a decade). Since 2012 the path has been steeply upward. That's the kind of volatility you should expect with a very concentrated portfolio. Fine if you are investing for several decades, have a strong stomach, and if those few stocks are long-term winners.

I would rather put a few bob on the 3:15 at Newmarket to satisfy my appetite for risk than gamble my entire retirement portfolio on a tiny selection of stocks. 

The_Green_Hornet