Friday, 10 Dec 2021 Portfolio Action: Taking Some Apple Off The Table (AAPL)
Friday, 10 Dec 2021 1:20 PM EST
Friday, 10 Dec 2021 1:20 PM EST
After this notice, we will be looking to sell some shares of Apple (AAPL) with an average price of 177.5$/share. On the portfolio management perspective, we're locking ~15% gain with this trim, bringing this position from 4% to 2% (3% allocated). Apple shares have had an incredible run, up 10% alone this week on top of a 3% gain last week. We think Apple has received too much love recently, and what we like to do for this name is when the general market goes all in on this name, we take a step back. That's point number one. Point number two is, we feel that overall market has gotten too positive for what's about to come from the Federal Reserve's FOMC meeting next week. For a long time, we ourselves have felt comfortable with Chairman Powell. However, given a sharp change of tune since his re-nomination and in particular his most recent Congressional testimony, we feel that Federa Reserve's monetary policy now is a bit unpredictable. If this fact is coupled with the stock market being down ~5% from all-time high like last week, we're fine. However, market is essentially sitting at all-time high, with this looming risk, therefore it is prudent for us to do some trimming and raise some cash position. This sale of Apple grants us some dry powder to go on the offense, if market does take a tumble after the FOMC meeting next Wednesday.