When Monetary Policy is Loose, is There Still Time to Buy Apple Shares?
The fallout from the last Federal Reserve meeting is that the FOMC has taken a hawkish tilt. The dot plot betrayed more FOMC members seeing sooner interest rate hikes coming from the Fed. The immediate reaction was USD strength and initial weakness in stocks. However, the initial drop in US stocks was erased as investors realised that loose monetary policy is still expected for some time.
Over the last 10 years, Apple has gained in value nine times between July 01 and August 30. The largest gain was in 2020 with a 42.01% profit. The largest loss was -10.53% in 2015 and the average return over the last 10 years has been 13.16%.
Is this now a perfect time to see strength in Apple stocks?
Major Trade Risks: Any further hawkish policy from the Federal Reserve is liable to cause stocks to weaken in the near term.