Apple Inc. (NASDAQ:AAPL) is majorly profitable, but as remarked by Fast Money Trader, Joe Terranova, investing in oil at this time could bring in even heavier profit than what it would sticking with the tech giant. While appearing on Fast Money: Halftime Report on CNBC, Joe was not hesitant to predict that Apple Inc. (NASDAQ:AAPL) could suffer from a slow period in March, 2015. He emphasized oil is finally going to lift off to the upside, and considering where oil has been since December, if oil really begins to accelerate there would be far more beta in the oil and energy companies over the next couple of weeks than in Apple Inc. (NASDAQ:AAPL).
“I think you cannot underscore how much is being paid for momentum and growth in the market place right now. I believe 14 sets up as the template for 15 – so we did have the momentum shake out in March last year – we could have that this year. Does it happen? I don’t know but if that does happen, the momentum that you have seen in names like Apple, I think you would see a pause in the rate of the appreciation,” Terranova said.
Joe’s new found love for oil does not spring from what Apple Inc. (NASDAQ:AAPL) has earned him in the year, but that he believes the time is right to make some fast bucks with oil beginning to look up. Joe seemed confident that investment in energy names like EOG Resources Inc (NYSE:EOG), Pioneer Natural Resources (NYSE:PXD), iPath S&P 500 VIX ST Futures (NYSEArca:VXX), and Range Resources Corp (NYSE:RRC) is likely to earn him a more decent profit than Apple Inc. (NASDAQ:AAPL) would. Risk does loom large but with his clever and timely maneuver Terranova is sure his returns will be great. He calls this move very tactical and said he would be back to Apple Inc. (NASDAQ:AAPL) very soon.
“What this is about is really going after and chasing beta. This is more about oil and it stems from a lot of what happened yesterday. Oil is not going to sit at $50. Oil is either going to $60 or oil is going to have an ominous fall through the lowest that we had in January. And the shift in allocation that I’m doing right now away from Apple is: I’m willing to place the bet that I think the shift is going to be towards oil appreciating to the upside […] I think over the next couple of weeks I’m going to get more out of the energy names,” Terranova said.
Jim Lebenthal of Lebenthal Asset Management seconded Joe’s opinion on the show and said Joe was perhaps being nimble but that was what he had to do.
“It’s a one year competition so you have to hold true to “these are my top five picks”. I’m sure Joe has a portfolio that’s got 20 or 30 stocks in it. I’ve got a portfolio that’s got 20 stocks in it. When are we putting it in the top five picks […],” Lebenthal said.
Joe is sure he is onto good things and there have been many comments recently about the days of cheap oil being over – is that something that Apple Inc. (NASDAQ:AAPL) minds? Apple is known to be a stock that benefits when the market goes up. If market goes up due to oil, Apple Inc. (NASDAQ:AAPL) would benefit automatically.
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