The Fed tightens: Will Apple be hit harder than Exxon?

“This series examines the risks of maintaining large cap growth exposure (sticking with the current winner) versus large cap value shares (being a contrarian and a long-term investor, like Warren Buffett) in the environment of Fed tapering,” Marc Wiersum writes for Market Realist. “Large cap value shares have outperformed large cap growth shares since 1998. That is the typical, long-term norm. However, growth shares were exceptionally strong relative to value shares coming out of the 2008 crisis, and on a post-2008 basis, maintain a small lead over value shares.”

“With the Fed tapering its bond purchases, and a potential end to the Fed’s buying program by the end of the year, rates could increase, and this could have a significant impact on the equity markets,” Wiersum writes. “For investors who see a virtuous cycle of employment, consumption and investment in the works, the continued out performance of growth stocks over value stocks could remain the prevailing trend, favoring iShares Russell 1000 Growth Index (IWF), and growth oriented companies such as Google, GOOG, or Apple, AAPL.”

Read more in the full article here.

8 Comments

  1. Hello Apple, my name’s B.O. and I smell bad too, like a drunk who hasn’t had a bath in a year. Like how the British smell. Yeah.

    Anyway I was just telling you that I’m gonna shake you down well and good. You white boys look damn fine for a shakedown and that’s what I’m going to give you.

    Now you might want to run out and buy a can of KY Jell before I start the ramming. As you know I don’t do half measures so before in finished with you, your butt’s gonna be as swollen as a baboon’s behind.

    And I’ve seen some baboons in my lifetime let me tell you cuz I’m from Kenya and I’m your President so lube up fellas cuz I’m a coming down hard on you.

  2. Apple is sitting on SO MUCH cash, that as the Fed tapers and the US Dollar in any way recovers, Apple can only benefit.

    That is of course, if their cash holdings are in US Dollars. Even if they are not I’m sure Apple is smart enough to hedge.

  3. All that cash is for Apple to finish their innovation that will bring Jobs back to life and other “really” important people that’s truly “beneficial” to the mankind.

    Then when Jobs says “One more thing”, he will announce the cash purchase of Feds, effective that day.

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