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Speaker 1: This episode is brought to you by P and C Bank.

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Speaker 2: Erness What's Up?

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Speaker 3: Okay, we're not even gonna play no games's let's jump

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Speaker 3: right into this.

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Speaker 2: Yeah.

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Speaker 3: The first thing I want to talk I want to

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Speaker 3: ask you is is Apple efficiently effectively done? Is when

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Speaker 3: I say done, I mean like, is it time to

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Speaker 3: take them out of the two tech two index philosophy?

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Speaker 3: Is it time to is it time to abandon ship?

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Speaker 3: Because it's like, if tariffs is really going to happen

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Speaker 3: and these iPhone is going to come to twenty two

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Speaker 3: hundred dollars for the for the most expensive one. Right,

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Speaker 3: we already talked about all the other problems that they have,

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Speaker 3: and Apple is the leading stock and a lot of

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Speaker 3: major ets. I think it's leading XOK and it's it's

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Speaker 3: the leading stock in a lot of people's portfolio. Warren

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Speaker 3: Buffett sold a lot of his Apple stock. We'll talk

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Speaker 3: about him later. Has the day come to abandon Apple?

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Speaker 2: I mean I just said last week we needed to

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Speaker 2: sit new ceo and you call me crazy heart, I say, no,

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Speaker 2: one's crazy. Well, you can't say it more local.

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Speaker 3: You can't blame this on Tim Cook though, this is

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Speaker 3: this is the rule.

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Speaker 2: Number one is the ceo. Man, and man, everything that

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Speaker 2: happens on your watch is your fault. That's true. That's all. Oh,

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Speaker 2: but they made the move to India to offset tariffs.

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Speaker 2: Great way to play late.

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Speaker 1: That was even part of the question last week, right,

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Speaker 1: like is their day coming? When they dropped under twenty percent?

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Speaker 1: Obviously now they went down under thirty. But where we at?

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Speaker 2: I'm gonna give my honest take about this. And it's

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Speaker 2: not because I created two tech two index. If I

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Speaker 2: made you money, please put yes in chat? Is that

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Speaker 2: they here? Now? No? Do I think it could happen

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Speaker 2: before twenty thirty four? For sure? Let's start with the positives.

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Speaker 2: Gross profit margin forty six point five two percent for

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Speaker 2: a fledgling, non innovative tech company. That is amazing. You

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Speaker 2: can't take that away. And the number one, please write

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Speaker 2: this down. The number one reason I constructed Apple and

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Speaker 2: Microsoft into the two tech two index scenario is draw down.

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Speaker 2: Even though they got the boot smoke today with Nike,

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Speaker 2: what's to draw down this year for Apple? Please put

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Speaker 2: it in chat. Y'all said, y'all want me to restore

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Speaker 2: the feeling, to bring the old essence back. I got

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Speaker 2: you what's to draw down this year thus far? So

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Speaker 2: if you compare Apple to Tesla, Tesla draw down is

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Speaker 2: two to three times bigger than Apple. So when you're

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Speaker 2: building your portfolio, the games are important, but how much

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Speaker 2: you can draw down is the most important thing you

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Speaker 2: want to factor in. And then profit margin. If that

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Speaker 2: profit margin was thirty percent of twenty nine Mortal Kombat

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Speaker 2: follow us victory fatality, I would be replacing them for

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Speaker 2: in video a long time ago. Now, what I don't

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Speaker 2: like about the business not a lot of innovation they

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Speaker 2: are even as tariff move. No, you can't solely blame him,

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Speaker 2: But if you've been to the White House during this

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Speaker 2: administration and last you knew this was coming. How are

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Speaker 2: you just now making an adjustment to make that move

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Speaker 2: in India when you know India's market is more in

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Speaker 2: portant important than ours in terms of market share going

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Speaker 2: forward for the next ten years. I think he's reacting

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Speaker 2: too slow. It's like when Harden started doing a step

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Speaker 2: back and then like everyone started doing it. I remember

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Speaker 2: the days when they would innovate and they would lead.

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Speaker 2: So it's a time yet. But well, I maybe moved

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Speaker 2: that date up from twenty thirty four to thirty two.

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Speaker 3: Probably well, twenty thirty two, I mean that's still a

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Speaker 3: long so you're still bullesh on app.

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Speaker 2: Yeah, forty six point five to two gross prop from Yeah,

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Speaker 2: for sure. I'm just asking because I know, yeah, I'm

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Speaker 2: not talking to my brother, you my guy.

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Speaker 1: As long as long as those statistics stay the way

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Speaker 1: they are, obviously it makes a lot of sense. Yeah,

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Speaker 1: I think the question for the people a lot of

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Speaker 1: people who are watching now is is this the bottom

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Speaker 1: for Apple?

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Speaker 2: Right?

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Speaker 1: This is twenty seven percent down as of today. There

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Speaker 1: still might be some room to fall here. Right when

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Speaker 1: we're talking about tariffs, we saw I mean we were

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Speaker 1: just sitting just.

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Speaker 2: Watching our phones.

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Speaker 1: Now the China retaliatory tablet came through at thirty four percent.

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Speaker 2: Yep, we come back.

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Speaker 1: Now we had another fifty percent without one hundred and

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Speaker 1: four percent tariff.

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Speaker 2: We know China like one hundred and four percent is grazy.

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Speaker 1: China accounts for eighty percent of apples production capacity. What

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Speaker 1: that does to the business. I know, we spoke about India.

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Speaker 1: It's so interesting when we were talked about India and

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Speaker 1: we talked about the declining sales of the iPhone inside

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Speaker 1: of China. We said, maybe it's not a product, it's

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Speaker 1: a new region, but it speaks to how long it

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Speaker 1: takes to get these businesses up and running, these factories

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Speaker 1: up and running.

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Speaker 2: They've been working in India for three years.

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Speaker 1: Right, they're saying potentially, right, if they expedite this the

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Speaker 1: manufacturing in India, it could account to fifteen percent of production.

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Speaker 1: And that's half to three almost four years years of

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Speaker 1: ability to get the infrastructure together. It can increase it

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Speaker 1: from I think now where it's at like maybe seven

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Speaker 1: to eight percent to up to fifteen percent, which is

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Speaker 1: a large jump, but it took four years to do that. Right,

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Speaker 1: you're talking about tariffs that are happening now there might

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Speaker 1: there's not going to be another four years sustain this,

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Speaker 1: and so something has to happen, right, like we gotta

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Speaker 1: they got to figure something.

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Speaker 2: Out here, or like a new CEO.

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Speaker 1: Well, I don't even know if a new CEO changes this,

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Speaker 1: right because the CEO of the country the way he's moving.

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Speaker 2: Okay, it's really tough to write, right. I have a

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Speaker 2: question for you. When you guys plan invest fest, do

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Speaker 2: you start three months before or the day after? Investmentest

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Speaker 2: is over the most important thing for a leader as contingency.

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Speaker 2: My first thought every day is what combination of factors

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Speaker 2: could put me out of business. It got too comfortable

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Speaker 2: with And I said this in stock Club. I said, here,

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Speaker 2: geopolitical risks first, then fundamentals, then technicals. You can't also

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Speaker 2: all your way out of this. So I think Apple

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Speaker 2: got too comfortable. And the thing is, Okay, we went

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Speaker 2: to GtC. When's the last time we've heard any significant

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Speaker 2: news come out of Developer Day at Apple in terms

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Speaker 2: of product or in terms of software anything.

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Speaker 1: Yeah, I mean it's it's the typical the iOS update,

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Speaker 1: the new MacBook, the new iPad. They tried with division

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Speaker 1: pro that really didn't work.

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Speaker 2: So the product back and we've covered Apple Intelligence if

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Speaker 2: that was a financial product.

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Speaker 1: Right, I mean every quarter it seems it's almost getting

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Speaker 1: forgot about in the rollout of announcements, right, Like that

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Speaker 1: was supposed to be part of the phone when it

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Speaker 1: dropped in September. They said it was going to be

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Speaker 1: there by December. We're here in April. They still haven't. Really,

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Speaker 1: I mean, it's it's there, but nobody's will to use it,

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Speaker 1: so it's full capabil They have their June summit's coming up,

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Speaker 1: and so there's a possibility there.

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Speaker 2: I hope. So I don't know. Apple load the boat

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Speaker 2: one fifty one forty.

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Speaker 3: Seven, Apple load the boat one fifty one. Okay, all right,

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Speaker 3: all right, you heard it there. That's lower than the

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Speaker 3: fifty two week low. For sure, that's low. That's pretty low.

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Speaker 3: But you gotta like Apple at this price though, at

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Speaker 3: least on a dollar cost average.

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Speaker 2: You got if you're looking two years out. But if

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Speaker 2: we are starting a portfolio from scratch, what I put

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Speaker 2: them there first over in video? Absolutely not absolutely not,

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Speaker 2: but you would add them to the portfolio. Yeah, they're

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Speaker 2: probably six seventh eighth man you're.

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Speaker 3: Getting so so okay. So for my personal I'm just

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Speaker 3: personally curious if there is seventh man and you wouldn't

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Speaker 3: put them ahead of in video? And why why are

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Speaker 3: they still in the two tech two index. Why isn't

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Speaker 3: it Mike so often in video?

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Speaker 2: For the two minimum of draw what's in videos? Draw down?

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Speaker 3: So the minimum the risk reward ratio.

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Speaker 2: Or ratio, especially you being a approach being conservative, the

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Speaker 2: number one thing you have to factor in in business

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Speaker 2: is how far can this thing drop? And ken you

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Speaker 2: would stand and pay a lot of you traders right

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Speaker 2: now are getting destroyed thinking that every trade that you could.

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Speaker 2: I know people who are shortened the market who got

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Speaker 2: whipped out to the upside because the stop was too

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Speaker 2: tight and then it dropped to where it was supposed

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Speaker 2: to go. The first thing I'm always factoring in is

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Speaker 2: how much risk will this investment buy me? If I

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Speaker 2: can mitigate that keep that within even the worst case

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Speaker 2: in there, if we have full out contagion micro excuse,

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Speaker 2: Apple and Microsoft together may draw down forty average this

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Speaker 2: including the Steve you Steve Jobs gives. If Apple goes

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Speaker 2: to forty two tests, is gonna be eighty nine percent.

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Speaker 1: Yeah, that alativity is over with.

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Speaker 2: Like you can't and all the fundamental analysis you'll go

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Speaker 2: through and all the charts. That's great. When you're down

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Speaker 2: seventy two percent, you're not thinking anything rational. You're going

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Speaker 2: to sell.

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Speaker 4: An illegal alien from Guatemala charged with raping a child

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Speaker 4: in Massachusetts. An MS thirteen gang member from Al Salvador

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Speaker 4: accused of murdering a Texas man of Venezuelan charged with

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Speaker 4: filming and selling child pornography in Michigan. These are just

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Speaker 4: some of the heinous migrant criminals caught because of President

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Speaker 4: Donald J. Trump's leadership. I'm Christy Noman, the United States

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Speaker 4: Secretary of Homeland Security. Under President Trump, attempted illegal border

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Speaker 4: crossings are at the lowest levels ever recorded, and over

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Speaker 4: one hundred thousand illegal aliens have been arrested. If you

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Speaker 4: are here illegally, your next you will be fined nearly

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Speaker 4: one thousand dollars a day, imprisoned, and deported. You will

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Speaker 4: never return. But if you register using our CBP home

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Speaker 4: app and leave now, you could be allowed to return legally.

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Speaker 4: Do what's right. Leave now. Under President Trump, America's laws,

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Speaker 4: border and families will be protected.

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Speaker 2: Sponsored by the United States Department of Homeland Security,