By Nigam Arora & Dr. Natasha Arora
Key Points
Here is how prudent investors should think about the potential Trump presidency on AAPL stock:
- If Trump gets elected, it will be at the start of a massive new upgrade cycle for iPhones. Older iPhones do not work with AI. If Trump is elected, it may create an environment that may accelerate the speed of upgrades.
- Trump is not likely to regulate AI. This is good for Apple.
- Apple is facing antitrust issues because it has allegedly been stifling competition. The expectation is that a Trump administration may not pursue an antitrust case against Apple.
- If Trump becomes president, Apple may become emboldened to pursue policies that increase profits with less concern for antitrust issues.
- There are allegations that Apple engages in monopolistic behavior to generate very high profits from the App Store.
- If Trump gets elected, the regulatory environment may favor Apple continuing its present policies.
- 20% of Apple’s business comes from China. This business may be at risk if Trump gets elected.
- If Trump imposes tariffs, some of Apple’s exports to other countries may end up with retaliatory tariffs imposed by other nations.
- The market for Apple products is saturated in the U.S., Western Europe, and China. Apple is counting on growth in other international markets. For example, Apple just increased its revenues in India by 33% from $6B a year earlier to $8B now. Tariffs imposed by the Trump administration may hurt such growth.
- AAPL stock is long from $4.68 in the Arora Portfolio. At the present price of $234.40, this represents a gain of 4908%. Due to large unrealized gains, the AAPL position has become a very large position in the portfolio.
Understand The Momo Crowd
If Trump gets elected, euphoria may break out in the momo crowd. As is their pattern, the momo crowd will focus on the positive points but ignore the risks. This momo crowd behavior could drive AAPL stock higher than justified.
Zones
For those who are following the Good Way, the Buy Now rating is *** (To see the locked content, please take a 30 day free trial).
For those following the Best Way, the new buy zone is ***.
The recommended quantity is *** of the full core position size.
For this reason, the AAPL target is being raised to $311 – $328. This is a very long term target.
AAPL is a very long term position in the Arora Portfolio.
Trade Around Position
On a pullback, a signal for a trade around position is likely to be given. The prior trade around position was just closed out with a nice profit. A trade around position is a technique used by billionaires and hedge funds that can dramatically increase your profits and reduce your risks. Please see Trade Management Guidelines to learn about trade around positions.
What To Do Now
Those in the stock may consider continuing to hold. Those not in the stock may consider following the parameters given above.
Maximize Your Profits
The election will cause shifts in many stocks. As shifts occur, time and again, it has been demonstrated that investors with deeper knowledge tend to do significantly better than investors who do not develop deeper knowledge even when both groups are receiving the same signals from The Arora Report. For those wanting deeper knowledge, listen to the podcast series in Arora Ambassador Club titled “2024 ELECTION AHEAD: SMART MONEY IS PREPARING NOW.” To get on the waitlist to join Arora Ambassador Club, please click here and fill out the form.
Note: Signal(s) to enter, add, reduce, exit, hold or change.
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Nigam Arora
Nigam Arora is known for his accurate stock market calls. Nigam is a distinguished master of the macro. He is a popular columnist with over 100 million page views, an engineer, and nuclear physicist by background. Nigam has founded two Inc. 500 fastest growing companies and has been involved in over 50 entrepreneurial ventures. He is the developer of Theory ZYX of Successful Change Management and is the author of the book on Theory ZYX, as well as the developer of the ZYX Change Method for Investing.
Dr. Natasha Arora
Dr. Natasha Arora has significant expertise in investment analysis especially biotech, healthcare, and technology. Natasha is a graduate of Harvard Medical School followed by a postdoc at MIT. She has published several peer reviewed research papers in top science journals.
