Apple’s Long-Term Debt Is A Great Hedge Against Hard Landing

Summary:

  • Apple Inc. offers a compelling investment opportunity through its long-term bonds, particularly the 2046 maturity, providing a hedge against economic downturns and interest rate declines.
  • Despite a decline in product sales, Apple’s growing service sales, with higher margins, have boosted overall profitability and operating margins to record levels.
  • The 2046 Apple bond outperforms alternatives like TLT, offering higher income and potential capital gains, especially if interest rates fall.
  • Risks include Apple’s heavy reliance on iPhone sales, potential antitrust issues with Google, and geographic exposure to weakening economies in Europe, China, and Japan.
Apple Store at 5th Ave in Manhattan, New York City

ozgurdonmaz

Introduction

Aside from being one of the most recognizable technology companies in the world, Apple Inc. (NASDAQ:AAPL) (NEOE:AAPL:CA) is also the biggest with a market capitalization of over $3.4 trillion. Apple shares are some of the highest traded in


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I own Apple bonds maturing in 2046.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


Leave a Reply

Your email address will not be published. Required fields are marked *