Tags: Munson | Apple | gold | bounce

Portfolio LLC's Munson: Buy Apple Stock Rather than Gold

Friday, 03 May 2013 08:23 AM

By Dan Weil

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Both Apple stock and gold have fallen over the last seven months and both have risen in recent days.

So which of the two makes a better investment now?

Apple, says Lee Munson, chief investment officer of money manager Portfolio LLC.

Editor's Note:
Get David Skarica's Gold Stock Adviser — Click Here Now!

The precious metal's drop "signals to the whole street that gold isn’t a safe haven anymore," he tells Yahoo. The precious metal plunged 30 percent to $1,336 April 15 from a record high of $1,921 in September 2011.

"Gold is a crap shoot."

Despite gold's 9 percent rebound since April 15, the two biggest physical gold exchange-traded funds — SPDR Gold Shares and iShares Gold Trust are still seeing net outflows, Munson explains. "So people aren't ready to believe in this bounce."

But when it comes to Apple, "there still are a lot of people who are believers," Munson says. "I think you can see some value."

However, "I have to see them come out with a new product," he adds.

Apple closed Thursday at $446. "If you want to own Apple I think you've got to buy that and you've got to put it in a drawer," Munson notes. It may fall another $100, but 10 years from now it may be 30, 40 or 50 percent higher, he maintains.

Apple certainly doesn't lack for eager bondholders. Investors snapped up the company's $17 billion bond issue Tuesday, the biggest in corporate bond market history.

"Apple bonds are a low risk alternative to Treasury bonds in this yield-grabbing environment," Mark MacQueen, co-founder and portfolio manager at Sage Advisory Services, told The Wall Street Journal.

Editor's Note: Get David Skarica's Gold Stock Adviser — Click Here Now!

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