The Worst Week in the History of the Market and Two Important Stocks Barely Fall

Apple fell 27 cents and GE fell 7 cents all week. One is a stock that you should buy and the other is one that you should sell.

Apple and GE each lost a third of 1% at the end of a week where most markets globally were down about 20%.  These stocks of course had been descimated earlier, but when they can escape a week like this with so little carnage, these mild loses are worth taking note of.

I am very constructive on Apple.  I went by the Apple store here and there isn't even the slightest sign of a pull-back in consumer spending there.  Their products are unique.  Their stranglehold on the entertainment industry is real.  After just touring through Latin America last week, I realize that Apple is finally global (their failure to expand internationally explained their near demise in the 80s and 90s).   Most importantly, Apple stayed strong even though it didn't have news to prop it up.

I am a little less constructive on GE.  I like the fact that Berkshire is in there, but when all is said and done it is a pretty risky bank.  The company's guidance this week still seemed much too rosy and that is why it stayed strong.  I'd wait for it to get down into the low teens.

I'd be buying Apple here, and a seller of GE.

Jason Rodgers
Jason Rodgers: Jason Rodgers was an experienced research analyst for a major bank prior to retiring to run his own investment consultancy in beautiful Lihue, Hawaii. Jason contributed articles to BestCashCow from 2008 to 2014.

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Comments

  • Jenn

    October 13, 2008

    Both were down much more sharply at various points. In a yo-yo market where fundamentals don't seem to matter at all, I am not sure that you can read anything into this.

  • Areyoukiddingonapple?

    October 13, 2008

    Apple stand to lose more than most on a slowdown. Consumer demand for premium consumer electronic products always gets hit first in a recession. If a depression - bye,bye.

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