It’s a bit confusing to look at the stock market on Monday as many of the most popular benchmarks are up sharply, yet the Nasdaq Composite continued to recede.
Dan Caplinger for The Motley Fool:
It’s never fun to see the broader market soar while your stocks get left behind. But as investors in high-growth stocks know all too well, sometimes some of the most powerful companies in the world have to go through market corrections, and that appears to be what’s happening here.
If you look at the top eight stocks in the Nasdaq on Monday, you’ll see nothing but a sea of red. At the top, consumer-tech giant Apple dropped more than 3% to fall before the $2 trillion mark in market capitalization.
When you get wholesale declines across the board like this, they tend to signal a broader trend rather than anything specifically wrong with particular stocks. Today’s move looks like investors rejecting mega-cap Nasdaq stocks regardless of their respective merits. That kind of mindless selling pressure can create opportunities when one or more stocks have competitive advantages compared to others.
MacDailyNews Take: Own it, don’t trade it. This too shall pass.