The Motley Fool

Goldman Sachs warns Apple’s profits could drop 30% on US / China trade war

Financial news wire CNBC is reporting that an analyst at leading U.S. investment bank and research house Goldman Sachs has a scary warning for any Apple shareholders.

According to CNBC, the analyst is warning that Apple’s profits could collapse by nearly 30% if China moved to ban its products in response to US President Donald Trump’s escalating tariff and technology transfer war.

The fact that Apple is reliant on Chinese consumers for much of its sales and supply chain manufacturing capabilities is no big secret though and the stock is already down around 10% since President Trump announced tariff hikes on China earlier this month.

Generally though it’s not a sound investing strategy to trade in anticipation of coming market corrections or events that you think could trigger a correction.

For example selling Medibank Private Ltd (ASX: MPL) or Commonwealth Bank of Australia (ASX: CBA) shares last week ahead of the federal election in Australia would have been an expensive mistake.

While legendary investor Peter Lynch is also reported to have said, “more money has been lost by investors attempting to anticipate corrections, than in the actual corrections themselves”.

Therefore while it’s possible there’s more short-term pain ahead for Apple shareholders, it’s still arguably the world’s best company and investors might be better off treating price falls as more opportunity, than risk.

It’s hard to believe what these 2 ASX companies could mean to the digital payments revolution

The Motley Fool’s top tech analyst has spent years studying the huge global trend in which cash and traditional banks give way to new digital payments systems... And now he’s identified the two ASX companies he believes are poised to win this multi-trillion-dollar “war on cash.”

If he’s right, these two companies could power your portfolio for years to come. Heck, stock #1 is already up 204% in just the last two years...

While Stock #2 has climbed a stunning 954% just since 2015.

Yet we think the biggest returns look to be still ahead. In fact, our expert is convinced investors who act now could be in for 10X gains (or more). Which means you will want to get the details on these 2 ASX companies as soon as possible.

So click the link below right now! We’ll tell you how to pick up your free copy of this brand new report, “Leave Your Wallet at Home: 2 Stocks for the Digital Payments Revolution”…


Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now