Apple's fine

Market scorecard

US markets dropped yesterday, dragged down by weakness in big tech stocks. Nvidia (NASDAQ:NVDA) stood out as the only winner amongst that group, and is now up 74% in 2024. Tesla (NASDAQ:TSLA) extended its two-day selloff, experiencing an 11% decline, while Apple (NASDAQ:AAPL) had its fifth consecutive session in the red. Google (NASDAQ:GOOGL) is also on the back foot.

This year, the S&P 500 is up 6.5% and the Nasdaq Composite is up 6.2%. The technology sector leads the gains with a 10% increase, followed by the financial sector with a rise of 7.1%. Healthcare has seen a 6.1% increase, while industrials have gained 5.9%.

In company news, CrowdStrike (NASDAQ:CRWD) zoomed higher by 24% in extended trading following an earnings and revenue beat, and a profit outlook raise. Woohoo! Elsewhere, Target (NYSE:TGT) jumped 12% as the retailer reported stronger-than-expected profits for the holiday quarter.

At the end of the day, the JSE All-share closed down 0.54%, the S&P 500 dropped by 1.02%, and the Nasdaq was 1.65% lower. Not pleasant, but it happens.

One thing, from Paul

Is it ever "too late" to buy a stock that's done well? Investors are alerted to companies whose share prices have gone up a lot, like Nvidia or Meta (NASDAQ:META). If they don't own them, they feel frustrated and are reluctant to buy at all-time highs.

In my view, it's never too late to own a quality asset, as its value is appreciating. If you still like the story, hop on board. If the revenue and profit growth are there, go for it.

Fear of heights is natural, but assuming that a fall is coming is a logical fallacy. The future is unknowable, and mostly winners continue to win. Companies that are thriving are doing so because they make stuff that the world needs.

Byron's beats

One of our favourite financial bloggers, Ben Carlson, wrote a great piece about trying to have a good work-life balance. This resonated with me because at the age of 37, with a young family, I am in a similar position.

Like Ben, I really enjoy what I do so I do not mind making myself available and going online to get work done at all hours of the day. In fact, by staying on top of my tasks, I find that it gives me more flexibility to be available for personal things like school events, exercise, and social activities. This also applies to travelling. I find it easier to relax on a holiday if my email inbox is empty and all client needs are dealt with.

Ben's article discusses the happiness index (pictured below) and notes that its lowest is in your 40s. That's the point in our lives with peak responsibilities. Growing a career, young kids, bills, mortgages, health, fitness and so many other things to focus on.

If this is something you are struggling to navigate, give the article a read, it might help.

Michael's musings

Current estimates are for global populations to peak around 2050 and then start to decline around 2100. Women in most parts of the world are having fewer babies, but the global population is still growing because people are living longer. Infant mortality rates have also declined. These trends are reaching their limits and in many parts of the world, population numbers are starting to decrease.

Global migration patterns will be a big theme in the coming decades. One region is more than doubling its population, while most other regions aren't seeing enough births to replace itself.

A changing population density landscape will be a big driver of asset prices and geopolitics. I suspect that politicians will soon switch to being pro-immigration, counter to the current trend.

Bright's banter

Unlike many other tech giants, Apple managed to avoid the scrutiny of regulators for quite some time. However, those days seem to be over.

The European Commission fined Apple 1.8 billion euros ($1.95 billion) for antitrust violations related to its dominance in the music streaming app distribution market.

Apple was found to have imposed restrictions on app developers, preventing them from informing iOS users about alternative and cheaper music subscription services available outside of the App Store.

This is Apple's first antitrust fine from Brussels and the third-largest fine imposed on a technology company by the EU. The Commission ordered Apple to remove the anti-steering provisions and comply with the Digital Markets Act regulations by March 7.

Signing off

Asian markets are mostly mixed again this morning. Hong Kong is the standout performer, where winners include Alibaba (NYSE:BABA) (+4.2%), Tencent (HK:0700) (+3.1%), and JD.com(+9.5%).

The Fed will issue minutes of its recent meeting today. US equity futures are flat pre-market. The Rand is trading at around R18.96 to the US Dollar.

Keep your chin up today, and work hard.

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