Keith McCullough examined yesterday’s -3.5% slide of Apple (AAPL) this morning on The Macro Show. Apple is currently down 1% today.
“When you start talking about these trillion-dollar market caps and their impact on the S&P 500, you really need to pay attention. It does that infrequently,” Hedgeye’s Risk Manager in Chief says of the mega-cap Tech stock’s one-day move from bullish trend to bearish trend.
“How many people own Apple? Basically everyone,” McCullough adds.
“How may know the volatility of it? And how to apply it to their decision-making? A very low percentage. Apple volatility (VXAPL) going to 25 was the biggest red signal in the market yesterday, because Apple equates to 7% of the S&P 500. Huge impact. So, if you didn’t know the Mother of All Bubbles #MOAB matters, now you know.”
As an investor, there’s no obligation to own what “everyone else” owns. Subscribe to Portfolio Solutions to see the core asset allocations that are hitting all-time highs in McCullough’s own long-only ETF portfolio.
