Big money: Heavy on Amazon, light on Apple

The winds of change headed to Washington, says UBS, and trades could quickly unwind.

Searching for stocks in the Trump rally that might be getting a little frothy, analysts at UBS found the opposite of a bubble in Apple. Among the actively traded, the world’s most valuable company turns out to be the most underweight.

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With the winds of change headed to Washington, deeply underweight (relative to what the models suggest) is not necessarily a bad place for a stock to be. The high flyers, UBS points out, have further to fall:

“Once these trades reach their critical value, or an exogenous shock occurs, we expect a sharp price reversal as investors unwind their exposure in tandem.”

Reformatted chart from UBS via Bloomberg.

3 Comments

  1. Keith Hope said:

    What does the WoW Chg column signify?

    0
    December 28, 2016

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