Investors have been increasingly concerned about sticker inflation around the world.
This, combined with Powell’s recent insistence that two more rate hikes may well be ahead for the US, has resulted in a headwind for the US Nasdaq. The US tech sector tends to be very sensitive to US rate expectations and many analysts are expecting further falls ahead for US tech stocks.
However, the seasonals for big name tech stock Apple are very strong. Over the last 10 years between June 27 and August 17 the stock has gained 90% of the time for an average return of 14.37%. The largest gain was nearly 30% in 2013 and the only loss was -5.49% in 2015.
So, are any dips in Apple worth buying with this strong seasonal pattern in place?
Major Trade Risks:
The biggest risk here is to do with even higher interest rate expectations from the US and/or a so called ‘hard landing’ from the US.
Remember don’t just trade it, Seasonax it!