Stock prices are weak again this morning. It's remarkable that Apple stock, which has led the stock market for the past three years, continues to decline. It is now down 6% over the last week.
Company news doesn't necessarily cause movement in a stock, but first the problem with Apple's new mapping application on its iPhone and then a strike by workers at its primary Chinese manufacturing facility could explain the recent decline in the share price. Or the stock--and the market overall--just might in the early stages of a meaningful decline.
The early stage of a market decline is typically met by the comment by market observers that it is a healthy "correction" after prices had risen too much in a short time. When the decline persists, however, it is dubbed a "bear market" (after the meaningful decline has already occurred).
Whether there is a more meaningful decline in Apple--and the stock market as a whole--ahead, I stand by my position that one should try to be patient in holding cash until better valuations are available for the market as a whole. There are (as usual) specific exceptions to this, such as VOD or MOFG, but I like cash here.
Steve Lehman
LehmanInvest.blogspot.com/
S & P 500: 1445
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