Friday, May 13, 2016

Being smart with $$ -- Masters of Hindsight

Everybody loves Apple.  Well they did when the stock was going up.  CNBC was full of people praising the company saying its upside was limitless.  Even your hair stylist and oil delivery person were telling you to buy it.  But now that the stock has fallen 18% from mid April and 13% from the start of the year (compared to the rest of the market that's up), suddenly everybody knows it's a dog and you should punt it.  Where were these recommendations $20 ago?  Now all you hear on CNBC is how much everyone loves Amazon, now that it's up 66% in the last year.   Bold prediction: IF Amazon were to fall 20%, I predict people will start saying they no longer like it.  And IF Apple rises 20%, people will again tell you how great a stock it is.  We are all masters of hindsight.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

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