Tag Archives: wozniak apple inc

Apple’s Latest Move Could Hurt Investors

MarketMuse blog update courtesy of InvestmentNews. With the anticipation of tech giant, Apple’s launch event today and last week’s announcement of  Apple joining the DOW, there is a lot to be excited about. However, InvestmentNews’ Jeff Benjamin points out how it could hurt investors. 

Investors and advisers who own shares of Apple Inc. (AAPL) cheered the news that it will soon be in the granddaddy of all stock indexes. But in all the hoopla, they may miss the fact that their portfolios could become overexposed to the tech giant.

On March 19, Apple is slated to replace AT&T Inc. (T) in the 119-year-old Dow Jones Industrial Average. The news sent Apple shares up $1.05, or 0.83%, to $127.46, in afternoon trading Friday as the Dow tumbled 1.44%.

As investible indexes go, the Dow is far from the most popular, but $12.5 billion of assets are invested in the SPDR Dow Jones Industrial Average ETF. And DIA soon will include the tech giant, joining the S&P 500 and a plethora of mutual funds and exchange-traded funds that already own it.

Apple, which started paying a dividend three years ago, is a Top 10 holding in a dozen dividend-focused ETFs that include Vanguard High Dividend Yield (VYM) and Wisdom Tree Total Dividend (DTD), as well as the Russell 1000 Index through iShares Russell 1000 (IWB) and iShares Russell 1000 Growth (IWF).

“There are probably some people who own the S&P and the Dow, and now they will own Apple in both indexes,” Mr. Rosenbluth said. “But, obviously, Apple is not the only stock held in multiple indexes.”

For the entire article from InvestmentNews, click here. 

#Facebook Over-Booked? Or Over-Cooked?

Breaking News: Bloomberg LP reports Facebook will be raising its IPO price range by 15% (from $28-$34 to $34-$38) and AAPL co-founder Steve Wozniak said he will buy shares in Facebook at the get go, regardless of price.

AAPL co-founder Steve Wozniak

In the same story, Bloomberg LP also reported  a “Bloomberg Global Poll” of more than 1,250 investors, analysts and traders  found 79% of those polled believedFacebook doesn’t deserve such a high valuation (that  poll was based on the lower pricing set just one week ago).