“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.”
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