WSJ: Apple etc. have injected volatility into the market

From “Tech Shares Roil Market as Stocks Fall for Second Week” ($) in Saturday’s Wall Street Journal:

apple injecting volatilityGyrations in highflying tech stocks have injected volatility into the broader market, a rapid about-face after a summer where U.S. shares marched steadily higher. Shares of Apple, Facebook,, Microsoft and Alphabet fell 4% or more this week, weighing on the broader market.

The market’s climb over the summer has largely been fueled by a handful of tech companies that are expected to benefit from the stay-at-home economy created by the coronavirus pandemic. Their hefty gains also helped explain a divergence that many people struggled to understand: why the market was rallying when the economy was limping.

Investors abandoned the group this week, leading to big declines in some of the market’s favorite trades this year…

Still, some investors have pounced on the market selloff as an opportunity to load up on more stocks. With low yields around the world, there have been few attractive places for investors to earn high returns

“When I see selling in the marketplace, I ask myself: ‘Where else are these investors going to park their money?’” said Dev Kantesaria, a managing partner at Valley Forge Capital Management, which oversees about $1 billion in investments. “If you’re a long-term investor, you should be buying these growth stocks.”

My take: I blame the pandemic for the volatility. The tech stocks just took it for a ride. Next stop, the U.S. election.


  1. Fred Stein said:
    Dev Kantesaria has the right idea, especially w.r.t. AAPL. Buy and hold

    Bolstering his thesis, younger (under 50) professionals are still mostly employed and many are buying AAPL passively with ETFs. That will continue.

    September 12, 2020
  2. Jerry Doyle said:
    There always will be some domestic or geopolitical factors impinging the markets. COVID-19 resulted in significant run-up in the “stay-at-home” stocks, mostly tech related. Traders and even some investors in these highflying tech stocks decided to take profits off the table. It is difficult to fault them for doing so. The WSJ is correct to denote that this week’s decline in these stocks’ prices were a “buying” opportunity to purchase more shares in these companies. The pandemic is not going away for a while, and these high-flying tech companies are just going to keep “high-flying,” especially Apple with its pipeline of unique and innovative product roll-out along with the introduction most likely of bundle services. As Dev Kantesaria says, “….Where else are these investors going to be parking their money?”(to earn high returns)

    September 12, 2020

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