Apple: Tech Rally Exhausted, Time To Hedge

https://seekingalpha.com/article/4156666-apple-tech-rally-exhausted-time-hedge

  • Seeking Alpha often focuses on bottom-up investing: company-specific data. Most of a stock’s return is related to both the market’s movement and the sector it is in.
  • Apple has rallied despite naysayers, alongside most of technology. Investors with limited technology exposure have suffered.
  • “The trend is your friend” is common guidance that many value investors ignore. Investors that have bought out of favor value have done awful in recent years.
  • Trends eventually break. Hedging technology firms like Apple is starting to make sense; selling covered calls is a time-honored approach to doing so.

The trend is your friend.

Be fearful when others are greedy and be greedy when others are fearful.