Today Business Insider published a story about a report from Morgan Stanley’s Adam Parker on “The Elephant In The Room”.
The elephant in this case is Apple and the report is about Apple’s stock and some of its historical movements and milestones.
The report further sheds light on how investors should deal with Apple stock. Even though the stock has been positive for most investors, an issue has always been when to sell. As Apple stock continues to have a rising trend, the decision of selling becomes difficult.
The report also listed some interesting facts, which are seen below:
- Apple is the largest stock in the S&P, and will likely be the largest market weight in the S&P since 1986.
- Apple will likely surpass Exxon as the top earning stock by the end of the year.
- 9% of S&P trading volume is Apple. That’s the highest of any one stock since 1982.
- 26% of all large hedge funds hold Apple positions that are larger than 1% of their portfolios
- One in 25 of all hedge funds has 10% or more (!) of their portfolio in Apple.
- Almost no other stock correlates well with Apple.
- Apple does not correlate well with any other area of the market (i.e. mega caps)
- Earnings tend to be big movers for the stock, while product announcements are not that big of a deal for Apple’s stock.
- Apple is somewhat negatively correlated with the euro.
Some of these facts are very impressive, especially when you consider Apple’s origins. What do you think? Do any of these stand out for you?