GOLDMAN SAY STOCKS HAVE BOTTOMED & WORRY ABOUT APPLE IN CHINA

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Well good day there subscribers and welcome in i’m happy to be back in vegas just got back from la over the weekend and today was a really interesting day in the stock market cuz this is a big day whenever you have a week that was craziness like it was last week on mondays always a really big guy so i want to kind of look at what happened in the market and some stocks

That went up and down and whatnot i want to talk about goldman sachs in two different things one goldman sachs came out and had some very negative commentary around apple i want to kind of hear about their bearish point and kind of talk about that also goldman said a lot of people should be going out there and buying stocks that the sell-off is just about done guys

So i kind of want to dissect both those and kind of give my opinion on that i hope you guys enjoy this has always hit a thumbs up if you do and let’s get into this so as far as the market it was not a crazy day in the market okay the nasdaq moved down a little less than 1% the smp 500 moved down a little over a half a percent and like i said it’s always a really

Big day when you come off of a week of craziness like we had last week and you come into monday you never know what to expect are we gonna have a day when the market just rallies like crazy are we gonna have a day when stocks continue the crash or or is it gonna impede kind of he’s kind of like a little bit of a lame day and that’s kind of how i would describe what

Happened in the market today as far as a lot of stocks that went down huge that were big names that were not a lot however on the upside the feed stocks are back in favor okay and bev up big today kronos canopy growth up big today tilray up big today all them up double-digit plus percent they’ve kind of cooled off the past month or so and today they got back in favor

Those are unbelievable trading stocks out there because if you’re trading those right there they’re so volatile as far as the upside downside if you’re shorting them right and buying them right i mean you can make a lot of money not something i do not something i would suggest anybody else out there do i’m just saying if you know how to play it right man those are

The type of stocks you can make a lot of money in because they are so volatile is unbelievable guys so now let’s get into the hardest video which is around apple and then we’ll get into what goldman’s is is is saying a bit basically about the stock market in general right now all right apple earnings may disappoint in because of a marked deterioration in chinese

Demand for iphones goldman sachs says there are multiple signs of rapidly slowing consumer demand in china which we believe could have easily affected apples demand there this fall goldman analysts said in a note to investors on sunday night though hall admit the smartphone market in china has showed some signs of improvement in the second quarter his forecast for

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A third quarter unit sales volume show a decline of 15 percent year-over-year that’s a big decline there while the analyst expects apple’s larger iphones the xr which isn’t even available yet that shouldn’t be available till the very end of this month and pushing into november in the iphone excess mac’s to counter some of that softening demand the overall decline

In phone demand could be costly – ceo tim cook’s bottom line they’re saying hulls of current projections for apple come in at around $11 and 78 cents for the current fiscal year and $13 and 77 cents for fiscal 2019 all right he says apples b your smartphones could at least partially offset the negative macro indicators though we doubt it will completely solve the

Problem in the chinese consumer demand out there all right and lastly the analysts also said much of apple’s upside potential in our thinking was centered around chinese demand for a larger screen sizes analyst ro should weak consumer demand persist the impact on the higher end of the market which would be apple its potential to beat and raise fiscal q4 2018 is

Likely reduced he is saying here okay the analysts said is kurd december quarter iphone estimate is about 80 million units and that includes 13 million from china or 16% of the total volume there right that’s down from 19 percent if they actually did that number that would be down from 19 percent the previous year all right so i mean let’s just say this gentleman

Is pretty i would say pretty bearish on the overall smartphone market in china i don’t think he’s necessarily saying that apple is just a weak company in china i think he’s mainly kind of saying you know just the whole the whole overall mark in china right now is week okay and we’ve heard a lot of rumors about you know chinese economy is getting worse and worse

The tariffs are gonna start to hit the chinese consumers out there maybe you know the people don’t want to spend $800 or $1000 on a smartphone when they’re not feeling too good about themselves a member the gd you know gdp per capita in china is dramatically less than somewhere like the united states and plus with those tariffs on that’s gonna raise iphone prices

Even more so an iphone might end up costing you know 1200 1400 you know 1800 dollars if you want some of the higher-end models of the iphone yeah you know even though the average chinese person might be making let’s say you know 10 grand a year or something like that that’s a very big part of their budget right so you’re really you’re really you know kind of going

After a very small amount of the market that that apple is over there when you have these type of price points i think the the biggest success in china for apple as far as this upcoming year i think will obviously be the the iphone 10 arm i think that has the biggest potential out there because that’s going to be their lower price bone which is gonna come in around

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$250 cheaper than the iphone 10s and the iphone 10s max it’s gonna come in at around $350 cheaper so as far as that goes yeah if you’re bullish on apple for the long term i would say most of that still intact okay regardless if apple’s up 5% in the chinese market down 5% up 10% down 10% in the chinese market it doesn’t make a massive material difference in what

Apple’s overall business is doing for the coming years but it is something to think about there especially if you’re trying to play that for a short term trade of any kind all right no let’s get into what goldman sachs has to say about the overall stock market in general so they say well investors wait for the squeal of last week’s market sell-off goldman sachs

Strategist think the worst has already passed goldman’s us chief equity strategist says we see limited further downside okay we see limited further downside he added that the kind of pullback the market saw last week was common i agree with that you know that just happens from time to time at least three four times a year stuff like that usually happens despite

The recent sell-off he says equity fundamentals are strong and we remain constructive on the path of the s&p 500 goldman’s year-end price target for the s&p 500 is 2,850 which looked pessimistic at one time but now that’s only about three percent upside from where you know the markets closed on friday that goldman call runs counter to what some wall street

Firms have been talking about that there’s going to be you know more dramatic volatility that stocks could move down even bigger things like that but koston said such declines are normal and shouldn’t have long-lasting effects the s&p 500 historically has seen five percent draw downs including every 71 trading days and it has had 69 since the last one okay

Investors though have gotten used to low volatility that has persisted last two years in the bull market alright so this is this is very interesting he says you know he’s basically coming out of here and saying we see pretty much a bottom here things will start to move back it you know upward as we get into november december is gonna be you know good year end he

Thinks you know we pretty much reach the bottom here’s the thing it’s a lot of it’s gonna depend on what these earnings well you know earnings season is kicking off right now and it’s about to go in a massive week the week of halloween the week before halloween the week of halloween in the week after halloween that is going to be earnings bonanza we’re gonna have a

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Ridiculous amount of earnings out there guys like it’s gonna be crazy at pretty much any company that’s a big company that matters out there and people look to to gauge overall markets in the economy all those companies are gonna be reporting pretty much in that three week span so we’re about to go into a massive earning season and depending on how those companies

Report depending on what their guidance is and depending on what their outlooks for 2019 is that’s what’s really gonna dictate kind of where the market goes for the remainder of the year if we see a lot of weak guidance if we see a lot of commentary that is very negative that was very what i would call scared commentary that oh boy we’re a little scared going in

2019 all these tariffs if we hear a lot of that out there from ceos or these big companies that is gonna freak the market out in a big way and this could be a situation where we have a massive amount of volatility going into the end of the year however if most companies have you know very solid earnings have good guidance and have good outlooks we should see the

Market start to move back up but a lot is gonna depend on where those guidance comes out at what’s the outlook going into 2019 a lot of companies are gonna be talking about that in this particular earnings season now that we’re coming up on the end of 2018 analysts are gonna be drilling them with a lot of questions that is what will really dictate you know kind of

That you know what type of 2018 we’re gonna have here at the end and what what happens going into 2019 guys so it’s gonna be a big next few weeks in the stock market guys a big next few weeks because like i said we’re getting into the heart of earnings season oh i love it i love it you guys gotta love it too you know a lot of money’s gonna be made a lot of money’s

Gonna be lost but needless to say is gonna be a lot of action out there guys and a lot of opportunities for people to buy shares that may not have been able to buy them in the past and a lot of people that may you know make a lot of money in them so hope you guys enjoy this as always let me know what your opinion is down there in that comment section on apple

Specifically and on you know you think the stocks are getting weakened as you know we go into the rest 2018 do you think they’ll strengthen do you think we’ll stay around here i would love to hear from you guys in that comment section as always make sure you follow me on instagram if you’d love to keep it up with stock market news i post a lot in the stock market

Or excuse my instagram stories thank you for watching have a great day

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GOLDMAN SAY STOCKS HAVE BOTTOMED & WORRY ABOUT APPLE IN CHINA By Financial Education

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