The Fed unleashed a speculative bubble when it cut rates in the second half of 2019. Apple (AAPL), the largest company in the US, led the market higher during the boom and has been resilient as other areas have gone bust.
The Numbers: Both AAPL and the equal-weight S&P 500 (RSP) are down 20% this year. But while RSP has pulled back to its lowest level since early 2021, Apple is still 14% above its June low. Longer-term, RSP is now only 20% above its mid-2019 level, while AAPL still has a 200% gain over the past 3+ years.
Why It Matters: Sentiment has turned sour again and talk of capitulation is widespread. Given its size and gains in recent years, it’s hard to see Apple staying intact if investors have thrown in the towel.
In this week’s Sentiment Report we take a Deeper Look at how the recent price swings have weighed on optimism and how an absence of bulls makes it difficult to have a bull market.
