Apple Inc. (AAPL) crashes and burns, market protection by firewall factors, can help the stock market to break through to new highs.
S & P 500 briefly rose an important psychological barrier of 1500, since December 2007, the first time, Apple collapsed, lost 11% of earnings caused by runaway condition.
Apple is pummeled, without any indication that the bargain hunting support backup and remain low in afternoon trading. The S & P 500 index was flat, while the Dow Jones index is higher. Apple is in the Nasdaq, which is more than a low percentage of about 9% on the day.
"I was a very encouraging healthy reaction, the market is able to maintain itself preeminent players call, said: BMO Capital Markets chief information officer Jack A Bolin. (Read more advantages: S & P can unite despite Apple sputtering)
Just a few months ago, when Apple is flirting with $ 700 per share, the Wall Street the analysts jump in each other raise our target price on the stock. This is the most widely influential stock in the market, it is still the world's largest stock market capitalization. Apple describes itself as an asset class, and even to play a pivotal role in a bond fund.
However, prior to this, 11 per cent on Thursday, Apple is deleted or nearly 30% since September. At the same time, the stock market has risen more than 10% since November. (Read more: El - Erian: Why Apple is not the market.)
, "A trader said:" This is a healthy market is not to say that there are macroeconomic factors affect Apple. "Implementation issues, it is more important is that it is affected by the competition."
To bite the lower-than-expected revenue lower than expected sales of the iPhone and Mac computers. Apple sold 22.9 million iPads, an increase of about 48% from last year, sold a record 47.8 million the iPhone is still below analysts' expectations. Apple earned $ $ 1.308 billion, or $ 13.81 per U.S. dollar, to $ 5.45 billion in revenue. (Read more: of Apple a broken company Gundlach)
"This is certainly an over-investment in the story, it has unparalleled growth last year, it was so great, the manager of any activity, if they do not have in their portfolio of 5% or 6%, to lag behind you a 5% position, even if you are in the market is neutral. said: "We have seen some of the funds, eight, nine, or 10%, which of course is a very favorite name, A Bolin.
"I think they're trying to do is to reduce their exposure, or just let the market do for them," he said.
A Bolin said, the market is likely to continue to climb, but once back approaching on March 1, "financial cliff" Legend of the Congress at a future date. Kicked in at that time, automatic spending cuts if Congress does not take action. However, he believes that the 1565 S & P 500-year-old high. "This is a very viable," he said. (Read more: Apple may be very cheap, but it can be cheaper)
Bank of New York Mellon Wealth Management head of investment strategy, Jeff Mortimer, S & P 500 Index is expected before the end of the year beyond the time closing high. His goal is 1575-1600. He said that the list of things to worry about investors being gradually retreat, including a slowdown in China and the European debt crisis. U.S. economic growth is very slow, but in the economy, including the housing has certain advantages.
"He said," I like the fact that people in doubt, I like the fact that people do not give credit. I like the fact that valuation does not stretch. The risk of safety, security has become dangerous.
Mortimer said, Apple is like a lone commander, leading the market for some time, which is a healthy, money out of the apple, spread throughout the market. "This is more dangerous a lieutenant ran in front of everyone," he said. (Read more: Investors unfair "Apple Cramer)
Microsoft (MSFT), Exxon Mobil (XOM), Wal-Mart (WMT), these are all names is a tremendous leader, has reached a certain level, before the sale, said Mortimer. Although he does not recommend individual stocks, he said, the former leader of the historic reaction may be Apple's lesson. "The market can be without them ... This is normal, this is what happened if Apple is to fly higher and higher, it is not normal."
Mortimer said, "as a whole, while Apple and some vendor is selling high-tech held." I use the word flexibility for the market in the past seven years and eight months, it is still said Mortimer. "Even in its largest members dropped by 10% ... we are in the market has been in my mind the future projections horrible bad when tail risk is removed or companies report decent numbers. This is a stock market Intel is now struggling to earnings, but Google (GOOG) and others are upside surprise, their stock returns. "
A Bolin think the market has changed, and Apple decoupling significant. (Read more: Apple to stop playing games)
"First of all, we also noted that value stocks relative to growth stocks, financial stocks and technology stocks to the middle to the end of last year," he said began to take the lead. Dominated by "... the growth and value sytles, often three to five years, and I think this is a symbolic, we can blow a name that is pre-eminent in the growth showed that the value of the investment is making a comeback." .
As for Apple, "we still adhere to it, we are certainly less than 5% of the stock portfolio, we will continue to hold the company is an excellent product and is surprised analysts and investors have recorded positive side, This is a disappointing many opportunities.
 



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