Some long-term Apple investors view Nasdaq’s rebalancing as a rare buying opportunity
With news guaranteed to roil the stock markets, the
Wall Street Journal
reported shortly after midnight Tuesday that Nasdaq OMX is set to announce a major rebalancing of its closely followed Nasdaq-100 index. According to the Journal:
The report triggered some predictable grumbling among Apple investors, irked that Apple’s AAPL shares will be punished for having grown four-fold in the past two years while Microsoft’s MSFT will be rewarded for having lost 42% of their value in that time.
But judging from the overnight chatter in Investor Village’s AAPL Sanity board, most Apple shareholders saw two advantages:
- Apple should be more insulated in the future from manipulation by hedge funds, which have been accused in the past of shorting Apple and spreading rumors as a convenient way to push the entire Nasdaq-100 down
- If the stock does get dumped Tuesday by money managers scrambling to rebalance their holdings, it will give long-term investors a rare opportunity to buy the world’s most valuable technology company at a bargain price
“Get your stink bids set!” wrote Julian Alexander, a regular on AAPL Sanity who posts under the handle Tommo_UK.
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[Follow Philip Elmer-DeWitt on Twitter @philiped]