Apple Inc. (NASDAQ:AAPL) is particularly vulnerable. The company – which I think highly of – already has a very high price point for its music players, phones and tablet computers. That the company knows this is indicated by the swirling rumors that the next-generation iPhone will have a model that is significantly cheaper. Anything that makes Apple Inc. (NASDAQ:AAPL) even less price-competitive might cause another run on the stock, and force it even lower. Savvy investors will be more cautious about Apple Inc. (NASDAQ:AAPL)’s stock until the full impact of a weaker yen becomes clear.
What It All Means
A weaker yen isn’t the problem. The real problem is the race to the bottom inspired by competing central banks all trying to export their countries out of economic doldrums. It simply can’t be true that all nations can use the same path to prosperity. As long as there’s competition for the same markets there will be winners and losers. You, as an investor, have the opportunity to take advantage of it. Keep an eye out for a weakening yen and see what Japanese firms you can get into quickly.
Nate Wooley has no position in any stocks mentioned. The Motley Fool recommends Apple and General Motors. The Motley Fool owns shares of Apple.