Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL), SPDR Gold Trust (ETF) (GLD): Second Half Playbook – Which Market Laggard Can Become a Leader?

Page 1 of 2

The first half of the trading year is over. For all of my readers, I hope it was a successful venture in the markets and your outside lives.

Given the numerous concerns heading into 2013, few investors expected to have a breakout performance in equities. We entered the year with concerns such as the looming fiscal cliff, payroll tax hike, and lukewarm corporate earnings forecast. President Obama won his re-election bid and investors reacted by hitting the “sell” button, with the market reaching a November 2012 low.

The dust began to settle when it became clear there would be no capital gains or dividend tax increases, and the Federal Reserve announced plans to increase its quantitative easing (QE) program. Ultimately, the Dow Jones Industrial Average posted its best “first half” performance since 1999, opening at 13,104.30 on Jan. 2, and closing at 14,909.60 on June 28.

To begin the second half of 2013, I thought it’d be worthwhile to discuss the top underperformers in the market year-to-date. Let’s consider the following readers choices, which have received a lot of news and media attention.

Innovation or not?

Apple Inc. (AAPL)

Despite its falling share price, Apple Inc. (NASDAQ:AAPL) is still widely perceived to be the world’s most valuable brand. Shares of the technology giant fell 25.5% in the first half of 2013.

Let’s consider the bear case on Apple Inc. (NASDAQ:AAPL) before predicting if the stock can rebound. Investors are concerned that slowing demand for smartphones and tablets will affect Apple Inc. (NASDAQ:AAPL)’s top-line revenue and a falling gross margin could affect bottom-line earnings. The company also faces increased competition from new devices such as the Samsung Galaxy S4, HTC One, and Google Nexus.

There’s a lot of moving parts, but I think Apple Inc. (NASDAQ:AAPL) can make a comeback in the latter half of 2013.

First, Apple Inc. (NASDAQ:AAPL) is the main beneficiary of a PC market in secular decline. We are in the early innings of a long-term trend as old PC inventory is replaced with newer tablet devices. While competitors have made inroads against iPhone, Apple Inc. (NASDAQ:AAPL) maintains a stronghold of the tablet market with the iPad. In my piece The Contrarian View: Four Reasons to Sell Google and Buy Apple, I outline why the tablet market is expected to triple in the next four years.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!