This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"We expect that an Obama-Biden victory will provide a renewed sense of optimism on the part of consumers; to profit from this expected trend is Apple (NASDAQ: AAPL)," says growth stock specialist Nate Pile, editor of Nate's Notes.
"Apple has been crushed this year on concerns about consumer spending. Any improvement in consumer spending that may come from an Obama win should only add fuel to the fire that is already burning brightly for Apple.
"The company's product line-up is one of the best in the consumer electronics space, and as we have been anticipating for a number of years now, success with products outside of the PC market is translating into growth rates for the Mac line that are significantly above the industry average.
"Apple's stock price certainly suggests that there is a huge buyer boycott going on when it comes to tech stocks these days.
"Part of the reason for the continued slide is being attributed to the lack of a 'major announcement' at a recent publicity event, though I believe the fall has more to do with where we are currently at in the 'psychology cycle' on Wall Street than anything else.
"Though we may have to wait until we get through tax-loss selling season this year to see a significant rebound in the stock price, we believe Apple's best days are still ahead of it, and a win by Obama will only help to accelerate the trends that are already underway for the company."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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Reader Comments (Page 1 of 1)
10-09-2008 @ 3:54PM
william lindblad said...
Nate is either nuts or lives far removed from civilization.
No matter who wins, the issue at hand is going to be around for a LONG time. It is NOT confined to the U.S. and it months away from? I use the question mark as I am lacking in a full definitive description.
I don't really know who to explain more default, credit swaps between banks and countries, closing stock markets, standstill trade and a lot of ticked off people.
Anyone who wishes to predict that a change in leadership is going to bolster a particular stock is in dreamworld.
I think that you should check on the issue between the U.K. and iceland as this is but the beginning. There is tons more in the housing default potential stretching all over the EU most of which is in either go or die, by spring. Hong Kong already has people in the street as a complaining mob and food inflation is rampant in most of the world.
Stock picking is going to be to the savvy investor and will have little to do with who is in the White House.
10-09-2008 @ 4:42PM
DaBrain said...
Nate's not nuts. While the fundamentals may take a long time to correct, much of the debacle we are going through is psychologically driven. Much of it stems from uncertainty, about everything. The election of Obama will remove one of the big uncertainties from the equation. I expect that after Nov. 4, you will see a reduction in volatility. If, as I suspect, he moves quickly to address the problems (whether the answers are right or wrong), the market will percieve it as finally having a leader who is in charge again, and will respond positively. With sweeping victories in both houses of Congress, you will have the clear indication that changes will be made. It will take a long time to figure out whether he makes the right changes or not, but at least someone is taking concerted, planned action to address the problems in a thoughtful way. As for Apple, it has been a bellweather stock for the sentiment in the market. I expect it will continue to be. When the market gains confidence in the future, Apple should be one of the first stocks to benefit.
10-09-2008 @ 10:33PM
Beltway Greg said...
Gotta love Obama. This guy beat the Clintons and is still giving them the finger all the way to the White House. This may be premature but this man may be the greatest campaigner of all time. Of course, McCrochity and his bleached blonde wife, (check out Newt's wife, they could be sisters), kind of gives you the creeps doesn't it, have run the worst campaign known to man. His comment concerning the economy has to be the most ill-timed comment ever. I wonder if Phil Gramm thinks it's okay for Americans to start to whine? This coupled with the war is really too much. McCain's supporters are screaming at him at political events. They truly can't believe that "That one" is beating their chosen candidate. I am afraid for our country. Face it John, Obama has no relationship with Ayers. That is the extent of it. People should check-out McCain's former spiritual advisor.
As far as stocks are concerned everything is going under the bus. If GE manages to beat tomorrow it won't be so bad but we're down at the open. It is impossible for anyone to predict. At this point don't make a trade that you can't live with for at least a few months if not a few years. XOM, WalMart, ........? A few untility companies, JNJ. A flight to quality?
Beltway Greg
10-10-2008 @ 1:22AM
Beltway Greg said...
Actually, watching the tape of McCain's rally today I can't help but to think of the picture of Bush 41 giving the speech in the rain. You could see it in McCain's face, he knows it's over and he is unhappy with the direction the campaign is taking. At this point he needs to salvage his reputation and rescue the republican party from the evangelicals.
Beltway Greg