You were dead on until that last part 🙂No, because markets fluctuate, sectors fluctuate, currencies fluctuate, suppliers have issues, regulators cause issues, competitors innovate or fail to do so... and Apple will innovate again, but not enough in a phone that’s likely to be announced in the next couple of months to recover these losses in itself
The bolded part really isn’t relevant. Apple didn’t drop over the last few days because of a sudden lack of innovation, and it won’t need any innovation to hit a new high next week.
The last few days was a simply a tech rout that took back a small portion of recent gains. A year ago Apple was at 54 (split-adjusted) 🤷‍♂️ Sure Apple closed at 120 today—and it was 138 a few days ago.
But a week from now it might hit a new high at 140. Or, if the market takes a dump, it could be under 100. Who the hell knows? And neither potential outcome may have anything at all to do with Apple’s fundamentals.
The stock market is not the economy. The US economy is on life support at the moment, propped up by trillions of dollars the Fed has pumped into it over the last six months. Interest rates are low, bond yields suck so a lot of money has shifted to the stock market at the moment.
That will change at some point, and investors may end up deciding a stock market that depends on the prospect of higher future earnings isn’t the place to be with a crap economy.
A month from now this Dow 28,000 could be at 18,000 where it was 6 months ago.
Anyone in the market right now would be extrembly well-advised to have a minimum five year—preferably ten year—plan to stay in the market and ride out a prolonged downturn in the market.
And this is no time to be day trading. A week ago I was hearing horrifying stories about people taking out loans to invest in a market that was going nowhere but up. Those folks got wiped out the first day of this three-day tech slide.