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Technology Stocks : Apple Inc.
AAPL 272.83+0.4%11:41 AM EST
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To: Phillip C. Lee who wrote (17646)9/7/1998 9:23:00 PM
From: soup  Read Replies (2) of 213176
 
This past month has been an education.

(A tip of the hat to Rich Habib re: markets vs. stocks.)

So what have I done?

1) Despite my strong near-term opinion of AAPL, I sold off all of my Jan '99 $20 when AAPL shares were at $35.

*Hated* to do it, but felt even a 25% chance of continued market decline was one I didn't want to live with.

2) Took tax losses in open and closed-end funds to offset some of the LEAP gains.

3) For a day, I enjoyed the piece of mind that comes from holding lots of cash in a volatile market.

4) Used weakness in AAPL shares to build up my position of Jan '01 $30 LEAPS. With an average cost of $13, all AAPL has to do is get back to its '98 high of $43 (over the next 2+ years!) for me to break even.

5) Opened positions in comparable higher quality funds that were similarly hammered but will likely bounce back faster then the more esoteric stuff I had before.

6) Total portfolio still up 45% for the year -- thank you AAPL!

7) Having experienced my first crash*, I now hold 20% cash and 10% in a market-neutral fund.

I'm getting old. I need my beauty sleep.

---------------------------------

*Last Monday, I called an analyst friend at around 3:30PM. He said he was watching wave after wave of computer sell orders pound the market down (the "puke stage" he said.) At the end of the day, he noted that the volume and advance decline were *worse* than 1987.
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