I Love Apple! So should I invest in it.....
Stocks are risky. I always encourage people to start with mutual funds. However, stocks don't need to be avoided as with most things higher risk you have the potential for a higher return...or higher loss.
What I like to look for that you can find for free on Yahoo Finances.
So let's look at Apple:
Stocks are risky. I always encourage people to start with mutual funds. However, stocks don't need to be avoided as with most things higher risk you have the potential for a higher return...or higher loss.
What I like to look for that you can find for free on Yahoo Finances.
So let's look at Apple:
- Current Price: $120 (1/21/17)
- 1 yr Target estimate: $133 (up 10.8%)
- Insider Transactions: are the heavy hitters buying or selling? If so, what is the price they took action at compared to current price?
- Sells range from $107-117 per share
- Buys range $122-124 however processed in 2015
- Keep in mind that many of the key players get stock as part of their pay so some sales could be automatic to adjust their personal portfolio
- 52 wk range: $89.47-$120.50
- Trends
- Short-term:4-5 dips in the past year. Small was 5% drop, large 20% drop in April/May. Showing on the rise.
- Long-term: 10yr has 3 major drops 2008 when entire market dropped. 2013 and earlier this year. On overall upward trend. Peak around Apr 2015 at $130
- On right hand side it also shows other fun things:
- Financials: estimates vs actual. High estimated and date is Jan 31, 2017
- Recommendation Trends and Ratings: 1.9 Buy this is helpful especially if comparing stock to stock
- Upgrades & Downgrades: Changes within weeks generally impact the current value. Last change was 3 months ago neither downgraded down to sell.
Apple a good investment?
Apple has been a great investment over the long term and doesn't appear to be losing much traction. Overall the market is high and due for a correction. This will affect all investments. According to investment firm Deutsche Bank, the stock market, on average, has a correction every 357 days, or about once a year. Our last correction was nearly 1,000 days ago, the third-longest streak on record. For those curious, we went around 1,800 days without a correction in the mid-1990s. Corrections are natural and good plus if you pay attention they make great buying opportunities.
I would guess that we will have a correction this year most likely the blame will be on Trump but as you can see it is just a matter of time. The estimate shows up 10% and correction could be down 10% so if you are a short term investor it could be quite a bit of risk. The overall market, including Apple, has risen overtime so the longer you plan to hold the better.
Trading A Stock:
As mentioned in my other entry, Type of Accounts, DIY investing is the cheaper route but you rely on yourself instead of the help of a financial advisor whose job is to follow the market and help teach their clients. Many DIY trading companies have stock purchases at $10 a sale of the stock would also be $10. Trading fees are also a larger impact on short-term and small dollar value investments. $10 fee on $100 buy is 10% charge, yikes. However, a $10 fee on $5000 is hardly anything at less than 1%.
Apple has been a great investment over the long term and doesn't appear to be losing much traction. Overall the market is high and due for a correction. This will affect all investments. According to investment firm Deutsche Bank, the stock market, on average, has a correction every 357 days, or about once a year. Our last correction was nearly 1,000 days ago, the third-longest streak on record. For those curious, we went around 1,800 days without a correction in the mid-1990s. Corrections are natural and good plus if you pay attention they make great buying opportunities.
I would guess that we will have a correction this year most likely the blame will be on Trump but as you can see it is just a matter of time. The estimate shows up 10% and correction could be down 10% so if you are a short term investor it could be quite a bit of risk. The overall market, including Apple, has risen overtime so the longer you plan to hold the better.
Trading A Stock:
As mentioned in my other entry, Type of Accounts, DIY investing is the cheaper route but you rely on yourself instead of the help of a financial advisor whose job is to follow the market and help teach their clients. Many DIY trading companies have stock purchases at $10 a sale of the stock would also be $10. Trading fees are also a larger impact on short-term and small dollar value investments. $10 fee on $100 buy is 10% charge, yikes. However, a $10 fee on $5000 is hardly anything at less than 1%.
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