Charles Green here, Senior Market Analyst here at Traders Agency.
Here’s today Market Pulse 360.
Market Pulse 360 for September 8, 2023
More on NVDA and AAPL: The tech and chip war continues.
In retaliation for the tough stance the US Commerce Secretary took against the Chinese Government during a recent visit and ongoing tension over the US banning AI chips from china for fear of use in military applications and other technologies, China has banned the use of iPhones for government workers while working at the office and may extend this to state-owned enterprises, as well.
This is very short-sighted for China, because Apple provides employment for 200,000 Chinese, mostly young workers, with an average annual wages of $86,000 – $35,000 higher than other employees in China. With youth unemployment over 20%, so high that China has stopped reporting these numbers, and the Chinese government is hurting itself. The ban only restricts use of the iPhone while in the office, which will not impact sales much, and Apple could decide to produce in other countries in Asia (India, Vietnam, South Korea).
With the Chinese economy struggling mightily, the Chinese government does not have leverage to fight a tech and semiconductor war with the US. Other large US multinational companies (Nike, Tesla, Starbucks, Ford, and GM) may also change their long-term manufacturing strategy and defer to other Asian countries for manufacturing. China also needs the US consumer, the biggest per-capita income market in the world, to support its exports-driven economy. The US has a resilient, robust domestic consumer and does not depend on China for exports.
NVDA went down this week in sympathy with Apple. However, this is a buying opportunity for both stocks! What matters at the end of the day with this chip and technology war is INNOVATION. The winners of innovation will keep winning!
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A Bit More About Me
My specialty is understanding financial markets and the drivers that influence longer-term direction. I’ve been an active trader focusing primarily on stocks for over 20 years.
- Been an adjunct finance professor for nearly 20 years
- Worked as a financial consultant with Merrill Lynch managing millions of dollars
- Earned a Master of Science Degree in International Business and Finance from Georgetown University and a Bachelor in Arts Degree in International Studies from George Mason University.
- Spent 14 years as a Marine (I enlisted at age 17) traveling all around the world
My education, work and life experience gives me a broad view of the world, financial markets, and life in general that informs my trading and investment decisions.
My passion is helping others to take advantage of the best market opportunities to achieve their financial goals.
This gives me the greatest satisfaction, and it’s the reason why I continue to teach in the classroom and outside of it today with every activity in which I engage. I believe that I succeed only if clients succeed.
I am a very unlikely success story. And this is only because I believe that anything is possible with the right knowledge, focus, and winning mentality! When you have that, success is just a matter of time.
Senior Market Analyst, Traders Agency