“It happened almost a year ago, and it’s happening again,” Shah Gilani reports for Money Morning.. “The meteoric rise in Apple Inc.’s stock price is distorting the major benchmark indexes, including the Nasdaq-100, the Nasdaq Composite, and the S&P 500.”
“That is still true even though the Nasdaq executed a “special rebalancing” of its Nasdaq-100 tech-heavy index to reduce Apple’s 20% weighting down to 12% last April,” Gilani reports. “With Apple’s impact on the Nasdaq 100 now approaching 17% (that’s greater than Google Inc., Amazon.com Inc., and Intel Corp. combined), it’s only a matter of time before another rebalancing takes a bite out of Apple’s influence on this important index.”
Gilani reports, “The problem isn’t that Apple’s share price has been so strong. It’s that investors may be unaware that the Nasdaq 100’s rise and the Nasdaq Composite’s jump to new 10-year highs wouldn’t have been remotely possible without Apple’s 60%+ gain since last summer.”
Read more in the full article here.
[Thanks to MacDailyNews Readers “Michael M., “Sarah,” and “David B.” for the heads up.]