Megacap Slump Is Testing Apple’s Safe-Haven Status
- The stock historically outperforms in market corrections: CFRA
- Apple’s quality attributes clash with concerns over growth
An Apple store in New York, US.
Photographer: Victor J. Blue/BloombergThis article is for subscribers only.
The Fed-induced selloff in technology stocks has traders dusting off their turmoil playbooks. Trouble is, one of the most popular strategies isn’t working: hiding out in Apple Inc.
Recent weeks have seen the stock fail to live up to its reputation as a haven. Concerns over China and recent growth trends — coupled with central bank policy that has contributed to the tech sector falling into a correction — has erased nearly $240 billion in value this month alone. Since the end of July, Apple is down 12%, compared with the Nasdaq 100 Index’s 5.8% decline.