Whenever you think that their fundamentals are reaching an inflexion point, this company proves you wrong. True, they have a loyal customer base and resilient earnings. However, price and momentum have dramatically deteriorated. Near-term, their technicals don't look good, though long-term their fundamentals always win out and you can't bet against that. It depends on your outlook, short or long term? If you expect choppy markets, then Apple is defensive.
Chips are must-haves in a client portfolio given trends in EVs, AI and data centres which all need chips. Chip revenues are about half-trillion today, and are expected to doubole by 2030. Buy an any pullback. Also lieks chips because of the cyclical story. After de-stocking, inventories of semis rose which weighed on the semis sectors. But slowly, those inventories are declining. Also, chip demand is closely tied to performance in the manufacturing sector. Watch Wednesday's manufacturing PMI and see if it continues to increase.
He expects further upside for the stock market will be limited due to a few headwind concerns. Economies in many countries are weakening. The U.S. consumer has been running down their savings. However he would be a buyer on further weakness. He feels that the next direction of interest rates is down since inflation is moderating although there are some blips at times. Rates decreases may not necessarily happen soon. The wealth effect of the market going up is much higher than decades ago.
He's been long since March 2023. There's 15-20% upside.