Apple stock becoming the ultimate safe haven

“At a time of volatility, like today, investors always look for a safe haven, a ‘risk-off’ trade,” Dana Blankenhorn writes for Seeking Alpha. “Usually they find it in the U.S. dollar. The greenback can absorb vast amounts of capital. And the dollar has done very well, while oil has soured the last few months.”

“But the dollar, while safe, doesn’t guarantee a return. As oil prices have fallen, yield curves have flattened. The game of parking money in bonds, even in long bonds, is no longer a guarantee you can beat general inflation,” Blankenhorn writes. “But there is one currency that does have float, does offer the hope of capital gain and does provide safety for investors. Apple stock.”

“Apple has reached that rare part of the investing stratosphere where it’s no longer trading just as itself, but as a proxy for other things. It’s a proxy for the U.S. economy and for the general idea of technology,” Blankenhorn writes. “At a time of intense volatility, it is a good place to be.”

Read more in the full article here.

23 Comments

    1. So why is the Oblahblah “administration” constantly attacking Apple? Oh, right. “Change.” As in, for the sake of. Oblahblah hates America. Misguided retribution for slavery or some such shit. Plus his beard is a transvestite.

      1. you know the repugnant nuts, i mean republicans, just hate the president. is it his skin color? is it that he’s half white? is it that they have done nothing to help this country for the last six years. when the man became president, the country was in a depression. the banks were so unstable that the needed the same government to which they want to pay no taxes to, no regulation from, had to beg money. here’s the kicker, not only did they want our money, taxpayer dollars, but we can’t have any say about their business practices. sound like your kids, right? want your money but you have no say. anyway, george had us in a war where he told us that iran had and was ready to use weapons of mass destruction. guess what, no such weapons. so what do we do about that? oh, the republican plan, keep doing what we were doing. how bright is that? here’s a thought, you may not be able to kill everybody that hates you. think now, even trying to do so will make those innocent people who just happen to be in the area think badly of those that’s doing the trying. why? well they may be hurt, their children may be harmed… collateral damage… or they may have no idea what the global political problems are so to them you are just trying to kill them… you think those people would love you afterwards? of course, we need to deal with those that would harm us, but CIA can handle it.

        the president, responding to american business along with the democrats and one lone republican put forward the patient protection and affordable care act. it seems your memory is short or your hatred is great. (oh, ok, both) american businesses complained that they could not compete with other countries because of the cost of health care. hospitals said their high cost were driven by those people that had no insurance. insurance companies said that their high cost was due to the hospitals charging so much. doctors claimed they were being sued at an ever increasing rate. small business claimed they wanted to offer their employees health care. who knew they were all lying. this president thought they were telling the truth.

        on this man’s back and backs the democrats who have tried to move the country forward, we placed this burden and then complained that change was wrong … we should be ashamed of our selves for not helping him. we should be ashamed that we let drug addicts, people who are divorced and married 3 or 4 times, (hey, look the first divorce, ok, you can blame the other person. the second divorce you’ve got to take some blame, you must be making bad decisions. the third divorce, come on… and the forth, it just might be you) people who make there living off of keeping a lie going… like the president is not a Christian or does not practice the Christian faith. –hey you prove that you are whatever faith you say you are… wait if all you do is say some words, or something, i don’t know that you have convinced everyone. oh yeah, in this country it doesn’t matter. so, once you share that information don’t worry about proving it. don’t waste your time.

        private industry can’t do everything, nor should it.

        ask yourself what makes you a great american, and it will boil down to you pay your taxes. remember the question is not what makes the country great. the question is, what makes you a great american? well, that’s what one american told a senate enquiry. 🙂

        of course you realize that under this president the country, united state of america, is producing more oil then ever. under this president opec feels the pressure of no longer being able to dictate the price and supply of oil on the market. why? because under this president other technologies have been brought into the energy game. natural gas, solar, wind with such diversity the saudi princes are saying they think oil should be no more than 70 dollars a barrel. you’ve bought gas lately, the price is falling. so, is it possible this president is helping the country be less depend on the middle east. when we no longer need their oil with are they going to sell us, sand?

        hey, give the soldiers a break. they have done a tough job and they have done their job well. but, their families need them too. they need a rest, they certainly have earned one. so, let the president draw these wars to a close. let the CIA handle it.

        you see the problem with blaming the government, if not checkout the preamble… you do realize you are really just blaming yourself, no matter who’s in charge. don’t let others convince you to hate yourself. and stop watching fox, they are making you hate your own government.

        oh yeah, stock market through the roof. no republican help…
        again. you know you are paying these guys to do nothing. man i wish i had a job like that. and these guys have staff and they do nothing but keep the base coughing up money. you do know when they leave office they can take the money with them.

          1. uh, and your point would be… guess what, contrary too many americans opinions cia defends this nation in ways you will never hear about.
            sometimes it’s better to use stealth. quiet works. silent dealings. cia, nsa are the right tools and fbi when on american soil. if you are a true conservative you ready see how this saves billions.
            oh, yeah check out the tom clancy movies. you’ll see the hollywood stuff, just imagine what they can really do. it’s cool. dangerous? yes. not always nice? well, yes. deadly, maybe. we always hope lawfully though and with true oversight they handle major problems. well, i believe they do a pretty good job, but i believe in the american government, no matter what ted cruz says.

            oh,
            but if your point was to remind people cia is not elected, i think most of us know that. just remember the cia, fbi, nsa, work for the people and are directed by the executive branch.
            guess what most of those employees are americans too. so, give them a break as they try to protect innocent people here and overseas, american and non-american.

            hey, don’t hate. b is right for the most part.

  1. Apple is a Stock that does not have “Budget Problems” and is constantly earning more money than they pay out in dividends and the company keeps growing ……

    Yes Apple may trade lower but if you look a long term chart the right side is higher than the left!

  2. Articles like this one make me cringe. I am a big believer in Apple, and am heavily invested in the company’s stock. But as an investor, I would never ascribe such certainty to ANY stock. The only certainty about the stock market is its u certainty and unpredictability. As long as you remember that, and remain patient and invested, your chances of success are much better.

    Consider that the stock market will have a major decline at least once every five years on average. While that is unnerving, over the long run, if you stay invested in good and bad times, and ride,out the storms, stocks will best bonds, gold, real estate and every other asset class of investments – OVER THE LONG TERM.

    In 1998, the leading stocks were Microsoft, Lucent Technologies, Walmart and Pfizer. Today, Lucent no longer exists. The other three companies have had flat results for many years. Things can change.

    That’s not to say that I am pessimistic about Apple’s prospects. But if you asked investors in oil drilling companies if they would have anticipated such a rapid reversal of fortune in little more than a month, you can see that things can change – and quickly.

    I urge you to read this excellent article by Morgan Housel of The Motley Fool. It’s an eye-opener. The more we think we know, the less we actually know.

    http://www.fool.com/investing/general/2014/12/12/122-things-everyone-should-know-about-investing-an.aspx

  3. Back in 1999 or 2000, one of the finance leaders (maybe the Secretary of the Treasury) made a statement that the current economic boom was here forever.
    At the time I had a sense of foreboding. Statements like that tend to be made to cover up problems that are brewing.
    So like now, saying that aapl is a save haven, a place for people and institutions to store their cash, is really a ruse to get investors to pour in equity.
    This is not to say that Apple will not continue to do well but when start making these types of prognostications, there is generally some ulterior motive.
    So invest in a company’s merit not just because some analyst told you it was a good idea.

  4. For short-term investors Apple doesn’t seem any less volatile than Microsoft or H-P. They’ve both seen pretty good gains over the past year or so and they’re actually holding up as well as Apple over the past month when it looked very possible that Apple would take off for the stars.

    What’s really surprising is how top-heavy H-P has been holding up much better than both Apple and Microsoft over the past month. H-P must be using heavy-duty duct tape to hold itself together. It’s just another observation I’ve made that makes little sense to me because I thought H-P would take a beating recently but I was way off the mark. H-P seems like another Titanic waiting to hit an iceberg but so far the captain is steering clear of any obstacles.

    1. i did, and thanks for asking. Blankenthorn did touch on the pros and cons. It was a balanced article. But I fear any article that’s too positive. The more confident I feel, the more I fear I’m overlooking something. That’s especially true for any investment. That’s why I included a link in my previous comment. I urge you to read the linked article. Once you do, you’ll know why. Thanks!

  5. I will read it — thanks. I do feel that in the next few years, despite the ups and downs of its stock price, investing in Apple is a good place to be. Decades from now, who knows?

    I agree with you, as an individual, investing for the long term is what will win out in the end.

  6. MDN, why are you giving hits to Dana Blankenhorn? He constantly bashed Apple and promoted Microsoft and Google in his almost daily articles at SA in the past. Only recently did he switch his tune and buy 10 shares. Yep, he bought 10 shares. He may write a post that’s a little better, but we all know that a broken clock is right twice a day, so that doesn’t mean a whole lot.

    MDN shouldn’t be giving hits to people like Blankenhorn.

  7. America is on a downward spiral…no one in government (Democrat or Republican) wants to face taking on the elephant in the room which is the amount of debt our country is in. Recommending Apple or any tech company for that matter as a safehaven shows how desperate things are.

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