The Cure for Apple in Your Portfolio
NEW YORK (TheStreet) -- With the S&P 500 delivering its best first-quarter return since 1998, there's a growing concern, in my mind anyway, over the sustainability of this rally due to the approximately 15% contribution made by just one stock, Apple(AAPL) .
If you have been long AAPL, cheers. (If you are short, I just don't know what to say to you.) The company has far outpaced the overall market, gaining nearly 50% year to date. This has contributed an outsized 1.75% of the S&P's roughly 12% price return.
If you were to strip Apple from the S&P 500 and eliminate its future earnings forecast, full-year 2012 earnings revisions for the S&P 500 would be 40% lower. This hasn't happened since 1999 with Microsoft(MSFT) and the tech boom, and we all know how that ended.