The recession may have a hold on stocks, but that does not mean profits have to suffer. As chaotic as things have been, a few wise moves with your portfolio could translate to victory instead of defeat.For starters, investors had every opportunity to miss much of the downside in the market by selling stocks in late September. At that time, I explained why it was okay to sell. My message was meant for those die hard buy-and-hold types that needed some encouragement to liquidate shares.
Then at the end of the year, I laid out a game plan for investors that would do well no matter the direction or volatility in the market. That absolute return approach was predicated on buying stocks from my Top 10 Stocks for 2009 and selling stocks from my Top 10 Stocks to Avoid.
Following that approach would have you in double-digit, POSITIVE territory for the year.
Interestingly with major market indexes at 12-year lows, a look back shows that within the negativity there were indeed glimmers of hope. In other words, there are stocks like IBM that have generated positive returns.
If you insist on a buy-and-hold approach, there are a handful of must own stocks for any portfolio, for any time period, for any economic environment. One in particular, Apple, Inc. (NASDAQ: AAPL) got beaten down today.
The supposed crime is that an analyst believes that estimates for revenues on certain products are too high. Stop paying attention to that short-term drivel. Even if this analyst has the landscape pegged, in the long-term AAPL will still do well.
Its products are winners, and the company is a true innovator. I expect AAPL to steal market share in the PC and notebook space while building a revenue base from the iPhone that blows away current expectations.
This company is a winner, and you should own it. I would use the selling today to acquire shares of this must-have company for any portfolio.
Jamie Dlugosch is a contributor to InvestorPlace.com.
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Reader Comments (Page 1 of 1)
3-06-2009 @ 8:18PM
iphonerulez said...
Unfortunately, only you and about five other investors feel this way about Apple. Already the analysts have starting calling Apple's death due to flagging sales number of all their products. It's already been decided that if Dell and HP sales are down then Apple with it's more expensive products will have to be down even further. They say it's a given that Apple will fall with it's leader, absentee Steve Jobs.
3-06-2009 @ 8:43PM
steve said...
I agree.
3-06-2009 @ 11:57PM
Sektor said...
Let me put it this in a succinct and eloquent manner: Apple sucks.
3-07-2009 @ 6:18AM
KarlW said...
You can't deduce Apple's sales - they defy logical reasoning. You would expect that in these harsh times, price would be king. In fact, you'd expect that most of the time, but now more than ever you'd think Apple were suffering.
From what I can tell, that's not the case. The retail stores I visit are still packed every day, and employees tell me they're as busy as they ever have been.
Apple still sells well because people respect its innovation and responsibility. Thanks to the internet, the amount of excitement Apple generates with great products is just like having another viral ad campaign, and that's before you get to the products themselves, which are designed to just walk themselves off the shelves.
3-07-2009 @ 10:03AM
Connie said...
AAPL could be tapped by the government to provide lap tops to schools. Has anyone thought of that?
3-07-2009 @ 10:18AM
inkyinky said...
I am a tried and true believer in APPLE products and the outlook on life that they believe in. I took a chance way back, and bought into APPLE when it was trading at $17 a share. My father said I was throwing money away. That statement is on a 3x5 card above my desk now.....Apple is the future.
3-07-2009 @ 12:01PM
Tim said...
apple products and the apple cult-ure has become tiresome to me. don't get me wrong, I have converted to apple, but i just find it has all become so boring. the new products just aren't there, and most of the new offerings this past year has been nothing really innovative just play on of old standbys. apple also refuses to go the netbook way, which is fine with me so long as they redo the Air to something more functional. this means make a lighter mb.
it shouldn't have been surprising apple's sales would decline, since apple is so firm about forcing everyone to pay retail price (price fixing). they have lowered prices, though, but i think they have another few quarters of down sales. however, i've been thinking about long term play, but i just don't see anything new coming down the pipe given how many not really different computer stuff. at least not innovative enough for me to trade my old mbp for a new one. but i'll buy apple in a couple of quarters once the stock goes to $75 or lower. if it doesn't then i'll cry myself to sleep.