Super late, but AAPL arguably shouldn't be within 10% of it's all time high. Arguably it is at the current price because of unprecedented swift and decisive action on the part of the federal reserve and congress.
The Federal Reserve slashed the federal funds rate to near zero and starting "unlimited QE". Neither of those actions amount to buying equities directly, but them taking such an active part in the corporate bond market (they now have the ability to purchase investment grade bonds, though they hinted in a recent meeting that they didn't actually purchase any) has done enough to spur companies into raising cash.
Congress's CARES act and other bills actually lend 4.5B (500B leveraged up ~10x) to corporations with little oversight.
On top of all of this AAPL actually has a ton of cash on hand, so they are arguably a better buy than other companies. Arguably the downturn in march was panic selling and/or selling to cover margin requirements, but with the uncertainty on how the virus would affect various industries and for how long, de-risking is worthwhile.
Also, no need to spend massively on hedging -- hedge according to your risk appetite.
If you don’t need to sell anything from your portfolio in the next 5-10 years, why hedge? The vast majority of investors should be focused on the long term, so hedging is just a cost that reduces their returns.
At the beginning of the period yeah it may not be necessary to hedge, but as the fund allocation shifts it's probably a good idea.
I have a sneaking suspicion that even if every single investor was long-term focused, the staggering of the starting and restarting of various funds would make the action look sinusoidal.
The Federal Reserve slashed the federal funds rate to near zero and starting "unlimited QE". Neither of those actions amount to buying equities directly, but them taking such an active part in the corporate bond market (they now have the ability to purchase investment grade bonds, though they hinted in a recent meeting that they didn't actually purchase any) has done enough to spur companies into raising cash.
Congress's CARES act and other bills actually lend 4.5B (500B leveraged up ~10x) to corporations with little oversight.
On top of all of this AAPL actually has a ton of cash on hand, so they are arguably a better buy than other companies. Arguably the downturn in march was panic selling and/or selling to cover margin requirements, but with the uncertainty on how the virus would affect various industries and for how long, de-risking is worthwhile.
Also, no need to spend massively on hedging -- hedge according to your risk appetite.