I believe in sector rotations as different sectors flourish under different economic conditions. However, each sector is not homogeneous and different companies can shine even when others fare badly. Therefore, it will still be down to choosing the right companies unless I go for thematic ETFs.
I expect Apple to catch up especially with the expected rate cuts later in the year which is usually beneficial for technology sector.
Between meta and apple, I would still choose apple as the ecosystem is sticky and there are many die hard fans, including me. Meta has yet to proven its AI potential so I would prefer to watch where the company is heading and its prospects.
July would be a tricky month with trump mentioning that he would not extend the deadline for tariffs reviews. This will again spark the concern for recession. I am bearish for July performance as many consumers will hold on to their cash instead of spending. It wil be a volatile month.
Mag 7 Earnings Wrap-up: Is AI Boom Still Driving the Market?
Big Tech's earnings season is nearly complete — with only Nvidia left on deck. Among the Magnificent 7, 3 names rallied after their reports, while Tesla, Amazon and Apple stumbled.
As earnings wrap up, one question remains: did this quarter reaffirm your faith in Big Tech? Who surprise you the most? Is AI boom still the best theme in stock market?
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