The theme this week on the Retirement Quick Tips Podcast is: Why Your Stock Portfolio Is More Risky Than You Think

On the very first stock market trading day of 2022, Apple stock became the first company ever to reach a valuation of $3 trillion. Apple’s value is greater than the entire GDP of India. If Apple was a sovereign nation, it would be the 5th largest in the world, just behind Germany and just ahead of the UK in GDP.

If you’ve owned Apple stock, for any length of time you’re probably a happy camper. And I would be willing to bet that even if you don’t own the stock, you still own it because Apple is a major holding in most broad-based market index funds and mutual funds.

The problem with this is, especially in index funds that are meant to mirror the performance of an index like the S&P 500, is that companies like Apple that keep growing like weeds, don’t get pulled out of the ground, or even cut back.

As a result, Apple and the other tech darlings like it become a bigger and bigger slice of your portfolio over time. This creates significant risks in a portfolio with large concentrations in just a handful of mostly tech stocks.

So even if you don’t own Apple stock, you probably still own a bunch of Apple stock and other large tech giants just like it.

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance