What is on the table is a company with a dividend rate just north of 2%, a single digit forward price-to-earnings ratio, tons (latterly) of cash in the bank, market dominance, a brand people love to be seen with, and a payout ratio of only 6% of earnings. If Apple's board decides to raise the dividend or buy back shares, it's a done deal.
I can't say it with greater clarity, but after relative risk, what other stock even comes close? Let the market's craziness work in your favor. The market is crazy, and selling their shares based on fear, not because of the investment opportunity. If someone is willing to sell you shares for under $490 each, simply smile, say thanks, and buy as much as you can reasonably do so based on your investment objectives.
I've been at this a long time, and I am saying it just doesn't get any easier than this. Use options as a hedge if you want to manage your risk, but now is the time to get in. I'm a trader, but I tweeted that I was buying Apple on weakness on Wednesday.
I don't expect Apple to close and stay below Tuesday's low, and if another wave of weakness rolls in, capitalize on the fear to expand your exposure. Fortunately if you're not in yet, investors may reasonably expect some resistance near $515.Let the price action enter the $514-$515 level and pull back. Your time to gain exposure is during the retracement. Don't expect the window to remain open long, but sitting on your hands and remaining disciplined is the key to managing your position instead of it managing you. At the time of publication the author held no positions in any of the stocks mentioned. Follow @RobertWeinstein This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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