Bad day for Wall Street—bad day for Apple, Inc. (AAPL). Just weeks after purchasing shares at $170, the computer/iPod maker sunk below $140/share in after-hours. After 19 straight quarters of blowout earnings—Apple disappoints. If the highest quality tech companies are warning about future expectations—what does this say about the current state of financial markets?
It says a couple things: Growth will slow (at least in the short-run); consumers will continue to tighten their belts and curb frivolous spending. In addition, companies that don’t report blowout future growth will get pounded. Are we headed for a recession? It certainly appears that way.
Things are bad. No doubt. However, I’m not panicking—and I don’t plan to sell my shares at a loss. Times like these separate the real investors from the amateurs—the resilient and patient veterans from the uptight day traders looking to make a quick buck. If I can give you any advice at this point it’s this:
- Don’t sell your current holdings. Weather the storm.
- Patience is a virtue—do you have any? Those that sell now will likely give up one full years worth of gains—but wait—this is why you dollar-cost average. Continuing to buy now gives you more shares at a lower price. When the index funds/stocks rebound, it’s a double whammy for your portfolio.
- What do you buy now? The whole market. Little by little. The S&P 500 is at a 52-week low. Keep buying. You’ll thank me in 30 years.
I currently own shares of Apple, Inc.