‘The market is utterly underestimating how much of a shock the coronavirus is going to be to the economy. And I think for the next 12 months, the U.S. consumer is only going to spend his money or her money on [nondiscretionary] goods. So, within that basket, I think you have to let Apple go.’
That is Boris Schlossberg of BK Asset Management, explaining to CNBC why Apple AAPL, +1.93% has no place in an investor’s portfolio amid the coronavirus pandemic. “Anything that is discretionary I think will be absolutely not spent a penny on for at least a year,” he added.
Why P&G? Well, Jefferies just upgraded the Charmin-maker, hailing the company as “among the best in staples to weather near-term macro headwinds.”
And as for Johnson & Johnson, the stock is gaining ground after the company said it had identified a lead candidate in its efforts to develop a COVID-19 vaccine. J&J said it plans to begin Phase 1 clinical trials of the vaccine candidate in humans in September, and the investigational vaccine may be ready for emergency use authorization from the FDA by early 2021.
Watch the full interview:
Apple shares followed the broader market nicely higher on Monday, up more than 2% at last check while the Dow Jones Industrial Average DJIA, +1.72%, S&P 500 SPX, +2.23% and tech-heavy Nasdaq Composite COMP, +2.73% all gained ground.