Many investors, on Wall Street and Main Street alike, are seeking financial stability amidst the coronavirus pandemic. As the third quarter of 2020 gets underway, is it time to start treating Apple like a safe haven asset?
Historically the third calendar quarter has been a “momentum pickup” period for Apple. For the last 10 years, the summer period has been good for Apple relative to the benchmark, on average, with August being traditionally the best month of the year.
So how should the average investor approach Apple heading into Q3 and what tailwinds lie ahead?
"In the third quarter things start to pick up, you have the back to school season and in September you have the iPhone refresh announcement. That's why usually I believe the stock outperforms," Apple Maven Daniel Martins said.
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However, in a climate that's so unpredictable is Apple the safe haven we've had for the last decade?
"There's a little bit of a dichotomy here because even though the stock tends to be good for Apple, it's usually not as strong as it is in 2020. Going into July Apple stock was up more than 80% over the trailing 12 months," Martins said.
The Nasdaq has been soaring to record highs largely driven by the likes of Apple, Microsoft, Amazon, and more. How does Apple currently stand among its tech giant peers?
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"Apple's up around 30% so far this year and those companies together account for 20% of the SNP and 40% of Nasdaq. The Nasdaq is up quite a bit and some of that is because of Apple," TheStreet senior tech editor Nelson Wang said.
What we know now is that Apple is richly valued, the momentum is there but the stock is stretched. So investors need to ask themselves, which stock do you pay most attention to?
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