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Ep. 219 Remembering Bill O'Neil

Investing With IBD

CHAPTER

The Importance of Breadth in the Market

I haven't been in Apple in a long, long time. I've always felt it was over-owned and a bit waterlogged in that it would just be a market performer. But so far this year, Apple has been dead wrong. If the NASDAQ was up 10%, you might make 12 in Apple; if the NASdaq was down 10, you'd probably lose 12 in Apple. As an individual investor, if you're managing your own money, you have a lot more flexibility.

00:00
Speaker 2
Yeah, so... In 182.94 back in January of 2022.
Speaker 1
It's hard to be. I know it's not, it's Apple, and it's very narrow. I don't know how... I haven't been in Apple in a long, long time. I've missed this one. I've always, in the last period in wrong ways, you can see Apple's gone nothing but up. But I always felt it was over-owned and a bit waterlogged in that it would just be a market performer. So if the NASDAQ was up 10%, you might make 12 in Apple, and if the NASDAQ was down 10, you'd probably lose 12 in Apple. But so far this year, Apple has been dead wrong. And I don't think you're alone in that assessment. Yeah, that was probably why it did what it did is because we all thought the same thing.
Speaker 2
Yeah, because I was right there with you. Now, part of this, you could argue, well, if that's the way this market is, why fight it, why not just own the stocks that are working? If it's a narrow market, just own the narrow stocks, the ones that are working. Is that feasible?
Speaker 1
Sort of. I think so a little bit as an individual investor, if you're managing your own money, you have a lot more flexibility. You can get in and out a little bit quicker. And I said it on I.B. Live, and it's a little bit tongue-in-cheek, that obviously it's better if we have 500 great stocks to choose from, and then I want to try to find five to eight stocks. If I'm only going to own five to eight to maybe 10 stocks max, why do we need massive breadth? And food for thought, but I understand the idea that with breadth comes more options. Right. But also,
Speaker 3
I think it's also
Speaker 2
kind of an odds game.

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