Apple stock (NASDAQ:AAPL) has been losing ground over the last month, following the general market’s bearishness. Here’s what investors should anticipate (and do) in the coming days.
While equities gained some support on Wednesday, September 28, the market tone has been overwhelmingly unfavorable in recent weeks. The cause is central banks worldwide’s hawkish posture as they struggle to keep inflation under control.
Market Analysis of Apple Stock
In 2022, Apple stock (NASDAQ:AAPL), which has been more robust than most other equities, has also felt the strain. Shares have fallen 7% in the last month, closely in line with the S&P 500’s losses (SPY)
What might investors anticipate from Apple in the future? Is the latest downturn, which puts Apple’s year-to-date losses to 17%, a chance to buy the weakness? Or, in the face of weakening market sentiment, should shareholders be more conservative?
Apple stock is becoming more volatile.
Apple stock (NASDAQ:AAPL) price currently is 31.5%, roughly four percentage points more than the ten-year average.
Apart from the first few months of the COVID-19 issue, this is the tensest Apple stock (NASDAQ:AAPL) has been in a decade.
Apple stock (NASDAQ:AAPL) price has been spiking recently, but so what? Shouldn’t market volatility assist in identifying excellent buys since long-term investors may purchase cheap and expect to sell high in a few months or years?
This has generally been true for AAPL and the US stock market.
However, doing so, and presumably generating higher future benefits, comes with more risk. Sure, AAPL has rebounded from significant pullbacks in the past – every single time. But don’t anticipate the road to recovery to go straight up and to the left.
Investors who hold the same apple stock (NASDAQ:AAPL) position throughout bull (calm) and bear (chaotic) markets may anticipate their portfolios to move more violently daily.
Is Apple Stock Worth the Risk
Can you deal with the uncertainty? In that situation, I believe that holding and even buying more Apple stock (NASDAQ:AAPL) now makes the most incredible sense.
Otherwise, more cautious and risk-averse investors hoping for a less unpredictable ride ahead may wish to reduce their stock investment. In the absence of a crystal ball, once again, the best course of action is to assess one’s risk tolerance and structure the portfolio appropriately.
Featured Image – Unsplash © Angus Gray