Why Apple's Bubble Could Pop in 2022
Technology and growth stock investors are likely aware of the sell-off that has impacted small- and mid-cap stocks in the face of inflation. Many names throughout the NASDAQ are down 30%, 50%, 75% from their highs.
Meanwhile, consumer electronics giant Apple (NASDAQ: AAPL) is near 52-week highs and up 40% over the past twelve months, a sign that investors are selling smaller, riskier stocks and buying large and established stocks like Apple. Be warned: Herd mentality can be dangerous for your portfolio. Here is why Apple could be the biggest disappointment of 2022.
It doesn't sound right to call Apple a bubble stock. After all, it's worth nearly $3 trillion in market cap, its products are beloved by almost everyone, and its business produces hundreds of billions of dollars in revenue. But bubbles don't necessarily come from a bad stock or company; they come from consensus. When everyone in the room agrees, you should be the most cautious.
Source Fool.com
