Apple will probably be the safest tech stock for the next half yearaccording to Gene Munster, de Deepwater Asset Management.
In an interview in CNBC last Wednesday, Munster ruled out the recent rise in the Nasdaq, which made the high-tech benchmark rose 17% in the first 2 months of the year.
It is unlikely that this movement will last for the next 6 months, says Munster, although he also estimates that Apple will be a place of refuge in this market that has been hit so hard by the banking crisis. “Apple is probably the best weathering this storm.”
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remembered Apple’s plans to increase spending with its supplierswhich could translate into increased production, and hopes that the manufacturer of the iPhone beat industry growth forecasts of 1%.
“No company is immune, but I think Apple is probably the safest place to be, at least for the next 6 months,” he said.
technology stocks
This comes after a wild week for the market, marked by the failure of Silicon Valley Bank last Friday.
SVB, whose collapse triggered a sharp sell-off in other bank shares, has increased pressure on the Federal Reserve to decrease its monetary tightening efforts in order to avoid overloading the financial system. That could also mean a bullish rally for tech stockswhich were affected by rate hikes throughout 2022.
Amid the recent turmoil, markets have cut the outlook for the Fed’s next rate hike, now expecting a quarter point hike, and seeing up to 100 basis points in rate cuts by the end of the year.
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But inflation continues to be one of the main concerns of central bankswhich are unlikely to cut rates until the labor market weakens, Munster said, meaning that Tech stocks could face more trouble in the first half of the year.
“I wish there was more optimism,” he said. “I’m glad to hear about that possible pause in rate hikes, but I think in terms of investment in technology stocksIn the short term, it’s a bit false.”
Munster has named Apple “one of the largest companies in the world” and has promoted the company as a bright spot in the technology sector. Previously, he commented that Apple stock had a real value of $250 per share65% above the current price of $151.
