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Originally Posted by E92inPHX
How far do you guys think Apple will continue to fall and what’s causing this month long slide? If it gets down to $115 I’m thinking of selling WFC and moving the money over.
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It's a rotation into value, industrials and financials. I'm not an AAPL stock expert but look for a reasonable support level for p/e and that's one estimate of the floor.
Tech is/was a bit overvalued, but it doesn't mean to me that tech won't have medium and long term growth above the S&P. Tech is fundamentally in the productivity business. Productivity is inherently valuable and delivers higher standards of living. It's an inherently sound investment strategy, at a high level.
Value is by its nature a relative term. Value can mean tech or any other sector. Just not shares with 100+ p/e. A growth stock can be a value stock.
In the short term, things get overvalued and small bubbles pop, as is happening now.
Have a look at solid industrial companies and banks of various types. Banks in particular have been outperforming the S&P lately. I have some new money to put into the market in a month or so and it will probably be in financials.