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Apple Is Sinking, and a Weaker Dollar May Be the Savior It Needs

  • Tech giant’s trillion-dollar milestones trigger selloffs
  • Dollar weakness is signal for foreign investors to buy the dip

Apple Inc. just suffered its worst week since last February and is down again Monday. What can reverse this trend? If history is any guide, look for a weaker dollar.

The tech giant hit a $3 trillion market capitalization on Jan. 3. Since then, the stock has lost 13%, while the S&P 500 has lost 11% with mega-cap tech shares taking a beating. The correlation isn’t new. Each time Apple’s market value has hit a trillion-dollar milestone, the broad market gauge has entered a technical correction. And a dollar slump has been the key to turning it around.