Premarket: Apple is red again

red apple premarket 3-11From “U.S. Stock Futures Buffeted as Volatility Edges Higher” ($) posted early Wednesday by the Wall Street Journal:

U.S. stock futures fell Wednesday as investors’ anxiety about the economic fallout from the coronavirus outbreak left markets poised for another day of tumultuous trading.

Futures tied to the Dow Jones Industrial Average dropped 2.1%, suggesting the U.S. blue-chips gauge is likely to open about 500 points lower. That follows a frenetic day that saw the key equity benchmarks soar in the final hours of trading. A closely watched measure of turbulence in U.S. stocks, the Cboe Volatility Index, inched up to near its highest in a year.

“For private investors, getting into markets at the moment is like juggling with knives: it’s just far too risky,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics. “For short-term traders, this volatility is very exciting, but for long-term investors, it’s worrying.”

If it’s any comfort, Apple is still outperforming the S&P 500.

apple premarket

My take: Flight to quality—and cash reserves.

2 Comments

  1. Jerry Doyle said:
    “ ‘…. For private investors, getting into markets at the moment is like juggling with knives: it’s just far too risky,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics.’ ”

    I believe Ian Shepherdson’s statement has merit. Having said that, though, I also believe that if one understands the fundamentals of a company and knows the company to be a well capitalized company with a positive trend in earnings going forward then one may as a long term investor feel the need to take advantage of these bargain basement share prices. The issue is when to go into the market because we always fear during these volatile periods that the market will test new lows later. When to go in is an “individualized” decision. To me, though, it is a “no-brainer!” Even if one fails to go in at the exact lowest point (and who knows when that point is reached) the mere fact that you are able to pick up Apple at the bargain basement prices is a win-win. If one keeps procrastinating hoping for an ever coming newer low, then one may miss the train altogether. So, when one feels that this share price is a steal, jump aboard the Apple train. I guarantee that individual that a year from now that he or she will look back and be thankful they did jumped aboard the Apple train.

    4
    March 11, 2020

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