Since Trump imposed and then paused tariffs on imported goods, investors’ confidence in US companies took a significant hit. The stock graph of tech giant Apple experienced a historical stock decline which later jumped to 15.3%, taking the company’s biggest one-day gain since 1998. In this volatile situation stock market bulls are rethinking their strategies to make safer decisions. Meanwhile, stock market strategists are offering their insights about future investments. 

Theory of Stress Period in Stocks

According to Chris Verrone, the chief market strategist at Strategas Research Partner, the stock market will rally from its current level with an approximate rate of 5,900 to 5,950. His opinion is based on the current low volatility of bonds and currency, compared to mid-March when there was more stress about the Liberation Day tariffs. He also observed that fewer stocks are hitting new lows, indicating market lows are formed during the period of bad news. Meanwhile, Verrone acknowledged that the upcoming trend of investment will be decided after monitoring the market breadth, credit conditions, and new highs in the coming days. 

Is Apple Safe for Long-Term Investment? 

Although Verrone didn’t give a final verdict on the future trend of Apple in stocks, he somehow cleared that the historical decline in Apple stocks was due to stress and uncertainty in the market at the macro level.  However, the situation of US-China trade war and the cycle of reciprocal tariffs cannot be overlooked. In this situation, Mizuho analyst Jordan Klein gave a silver lining by indicating at the exemption Apple received during Trump’s first term, saying 

“90% of investors seem to believe Apple will get a tariff exemption,” 

Will Apple get an exemption? 

Considering Trump’s precedent during his first term, Apple will get an exemption from tariffs. CFRA Research analyst Angelo Zino also increased the possibility of Apple-specific exemption from 20% to 50%. However, if this exemption is not given and Trump sticks to his tariffs on China then investors will require long-term strategic planning before investing in Apple stocks.