Once a market behemoth, Apple now may be facing headwinds. To learn more about why investors may want to beware of this tech titan, Fox Business’s Claman Countdown turned to AlphaCore Wealth Advisory CEO and Founder Dick Pfister, CAIA, LIVE on Friday, November 4, 2022. Appearing in the Countdown Closer segment toward the end of the hour, Pfister gave viewers his perspective on Apple and where investors may be able to allocate their assets more effectively in our rising rate environment.
“This is a consumer stock, and they have a lot of subscription revenue,” Pfister says of Apple. “If we hit a recession, those subscriptions will fall. They are one of the last FAANG stocks that haven’t seen any significant pullback, so I would say if you hold Apple today, just lighten your weighting towards it. If you want to hold it for a strategic hold, it’s a good long-term hold, but we think there is likely some downside room ahead for Apple.”
While Apple and other tech stocks’ futures may not be as bright as they once were, Pfister does believe that there are some other asset classes that may be able to offer promising returns for investors.
“I think inflation is here for a little bit longer than people would like. Cash is king in that world. So if you are thinking of companies with high free cash flow, that’s the kind of names that we like,” Pfister explains, pointing to short-duration municipal bonds, managed futures strategies and ETFs in the healthcare and energy space.
In addition to airing LIVE on Fox Business, Pfister’s quotes were also utilized in a recent Fox Business article, which can be viewed here. If you have any questions about how to effectively allocate in times of market uncertainty, please do not hesitate to contact us.
Any discussion regarding specific securities is intended for illustrative purposes to respond to the interviewer’s request for information responsive to a major market event; in this case an inflationary environment. This does not constitute a recommendation, offer, or solicitation for any specific security or any specific investment strategy, as AlphaCore provides investment advice only within the context of our written advisory agreement with each AlphaCore client. Any recommendations made by AlphaCore will vary client to client based on their current financial situation, risk tolerance, income needs, goals and objectives among other financial planning factors.
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