Should I Sell My Apple Stock in April 2020?

The question of whether to sell Apple (AAPL) stock in April 2020 is a common one, especially given the market's performance and the company's cash reserves. This article delves into the factors to consider and provides insights that could help investors make informed decisions.

Investing in Apple

Long-term investing in Apple is a strategy that has shown significant returns. Warren Buffett, a renowned investor, has shown no inclination to sell Apple stock, indicating the confidence the market has in Apple's future.

However, the decision to sell or hold can be complex. If you need the money, you might want to consider selling a portion of your stock rather than the entire position. Selling less could preserve your long-term capital gains, which would save you taxes. Holding the stock can also benefit from dividends and potential appreciation.

Historical Performance and Future Prospects

In April 2020, Apple stock closed at 71.11, and by September 2021, it had reached 148.97, doubling in value in just 17 months if you did not sell. This dramatic increase underscores Apple's profitability and the potential for significant gains over time.

Apple's cash reserves are a key factor in its resilience. During market downturns, it can quickly become a value play, emerging as the first stock to break out of bearish patterns. This makes selling currently less attractive unless it reaches certain price levels that indicate a potential for downturn.

iPhone 12 Release and Market Dynamics

The release of the iPhone 12 presents a critical moment for the stock. If sold before the release, it would have captured a portion of the excitement and anticipation around the new model. However, selling now could miss out on potential gains after the release. The 5G upgrade cycle and the unprecedented health and economic crises might impact the expected pullback in the stock.

The 5G upgrade cycle is significant as it has not followed a predictable schedule annually. An upgrade cycle in 2023 might be more revolutionary, influenced by the 5G technology. This could lead to higher sales for Apple in the next 12 months, helping to offset any potential pullback due to market pressures.

Market Analysis and Recommendations

The analysis of market trends suggests that the stock could test its recent highs before pulling back. The resistance level at 138-140 is crucial. If the stock successfully crosses this level, it could see further gains. If not, it might retreat before trying again.

Given these factors, the best time to sell Apple Stock in April 2020 might have been when it reached around 138. Selling now could limit the potential for gains from upcoming sales driven by the 5G upgrade cycle and the overall market rebound.

Always consult with a financial advisor or use your own mechanisms to make informed decisions. Investing in Apple stock involves financial risks and uncertainties, but the potential rewards are also significant.