Do you remember just less than a year ago analysts at this price for Apple stock (aapl) were crying buy, buy, buy.
The current levels of less than $500 per share are actually still attractive. I personally sold all but a rump of Apple stock after New Year. That followed a sale in October as the stock fell from its high.
I had some leeway as to when to sell as I had average price levels of $350 per share so I still made some money.
At the moment I will hold back my few remaining shares are held at an average price of $290, if Apple get below thatI would be in for a buy anyway, unless there is some major calamity to make me step away.
Last year analysts saw prices for Apple at $1,000 per share, today they are selling off like yrsterdays french fries.
The last few weeks has been a perfect example as to why an investor should diversify. If you had all your money in Apple and had bought higher than the mid $400 level you would be hurting badly. No one will call this a bubble, but it was and the bubble on the stock has definitely burst.
Apple as a company still appears to have great prospects, if management doesn't panic and begin to chase the stock.
Keep the brand as an aspirational brand, don't go down market.
Keep a pipeline of genuinely new goods coming forward. Don't re-hash old ideas as improvements.
Don't play a blame game at the top. Firing board members and wailing a long lament.
If Apple does ANY of these things, I would be out of the stock at all costs. If they keep a cool head there will be talk again of the $1,000 stock price in a year or two, though this shock may weaken investor confidence for quite a time.