"China accounts for about 20% of sales for both companies, and I think people need to think about controlling the risk for these positions through potential trimming right now."
This is Mark Tepper, President of Strategic Wealth Partners, who explained in an interview with CNBC on Wednesday why he believes Apple
Both could face a downturn given the increasing tensions between the US and China.
The already fragmented relationship between the two world powers was struck again this week when the United States ordered China to close its Houston consulate to protect American intellectual property. China, in turn, said it would return the favor.
"The escalation of tensions between the US and China is a reminder of the risk investors face in the upcoming US election campaign," said AxiCorp's Stephen Innes.
Tepper said the "headline risk" could fall directly on Apple and Nike.
Apple, which had a crack this year, appears to be "set for perfection," Tepper said, pointing out that the stock's price-earnings ratio is twice the five-year average.
"As much as Apple wants to shift its focus to services, they first have to put their phones in the hands of consumers in China," he added.
Nike's themes, on the other hand, are about more than just demand.
"China doesn't just get a lot of its revenue from China," said Tepper. "China also makes 23% of its shoes, which is a problem with tariffs."
Read:Nike's restructuring will result in job losses and a one-time cost of $ 200 million
Both companies are good companies, many people own them, but I think we have to be smart, we have to manage risks, and it might make sense to cut them. "
In the confused session on Thursday, Nike managed to break into a positive territory while Apple stayed behind. The industrial average of Dow Jones
was trading lower than both the S&P 500
and Nasdaq Composite
were in the green.
Watch the interview: