Timing is everything in the world of investing, as many who have lived through the last two (memorable) bubbles remember. Companies like Apple Inc. (NASDAQ:AAPL) which are ahead of the pack in terms of long term earnings potential, in my opinion, still run the risk of falling prey to a bubble which could encapsulate an entire sector in the near to medium term.
I'm referring specifically to trade tensions between China and the U.S., tensions which have companies like Apple scrambling to find suppliers outside of China that may not be directly affected by tariffs. The reality remains, global supply chains are very complex, and trade tensions between the world's two largest economies have many investors on edge (myself included). For Apple investors, trimming and/or steering clear of Apple at this point in the cycle may be a prudent move, as we wait to see what the true impact of this foreign affairs strategy will be in the medium term.
Even the greatest long term buys are sometimes short term holds, and I really do think this is the case with Apple right now. Though the company is fairly valued, with a ton of growth potential globally, the concerns I've laid out thus far in this article, to me, represent a significant risk that outweighs the potential benefit investors may receive by buying shares of Apple at today's price.
Invest wisely, my friends.
