In order to get anywhere these days, market participants have to put their heads down and not just run, but sprint. Every now and then, perhaps when they are winded or run into something, investors get to pick their heads up, survey the landscape, and decide what direction to sprint in next. As anybody with a buy-and-hold position knows, this can be tremendously stressful.
For example, anyone who has held Apple (NASDAQ:AAPL) for the past six months and still has their head above the crowd is probably wondering: what’s next? Stay the course or change direction?
Writing for MarketWatch, Bill Gunderson, a adviser based in San Diego, has a few wise words for anybody re-evaluating their position in the world’s largest tech company — or any position they hold in the market. The ten second takeaway: Just as markets don’t go up forever, good stocks don’t fall forever, and Apple is a good stock.
Acknowledging Apple’s current down trend, Gunderson wrote that the company “will find a bottom, go sideways for a while, shake out angry investors, and eventually break out and start a new uptrend.” This seems reasonable, given the “good stocks don’t decline forever” thesis. But the problem, as he notes, is in the timing. The million-dollar question is when? As pundits — professional and amateur alike — well know, identifying tops and bottoms on the is enormously difficult.
Gunderson suggests that Apple could “do a Netflix (NASDAQ:NFLX)” — specifically, go sideways for a while as it shakes out all those angry investors before heading for positive territory. He’s quick to mention that he doesn’t expect Apple to explode higher in the same way, but it seems reasonable to expect another uptrend in the future. With the market edging closer to an undetermined top, perhaps after the adjustment.
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