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Usually large cap stocks mean less volatility and more fundamental based trading, but Apple is looking more and more like a special case. It has the largest mar
by Cookingboy 14y ago
Usually large cap stocks mean less volatility and more fundamental based trading, but Apple is looking more and more like a special case. It has the largest market cap yet people treat it very emotionally and it is being traded heavily by both large institutional investors and small retail investors, often for completely different reason. (For example the recent sell off was triggered by investment firms re-balancing their positions at the end of the year, but that combined with the fiscal cliff thing spooked a large number of retail investors as well, thus triggering an even larger sell off) The end result is it can seem unpredictable and the stock trades like a penny stock.
There is a Chinese saying "The bigger the tree is, the more it sways under the wind", maybe that's what's happening here?