US stocks fell on Monday, extending last week’s losing streak, but there could be more pain ahead as the stock market heads into what’s traditionally been “seasonal weakness” for equities. . But strategist King Lip is not overly worried. Lip, chief strategist at BakerAvenue Wealth Management, told CNBC’s “Street Signs Asia” on Monday. “More importantly, we don’t believe we’ll break the June low,” he added, referring to the stock market’s rapid decline to mid-June lows. Defensive However, Lip maintains a “defensive stance”. “In an environment of so much uncertainty right now, we like high quality, we like defensiveness in companies that have reported earnings recently and raise estimates,” Lip said. One defensive stock he likes is Apple. The tech giant has emerged relatively peacefully after this year’s bear market run. The stock has lost about 11% of its value this year, beating peers in the FAANG group as well as the tech-heavy Nasdaq Composite. Apple is also the only FAANG stock to beat on earnings and revenue in its most recent earnings season, as it delivered earnings per share of $1.20 and revenue of $83 billion for the quarter. third finance. Read more Warren Buffett likes this stock. Morningstar is more bearish and thinks it should trade lower at the ‘inflection point’ and it’s time for a new investment book While Apple hasn’t released official guidance for the quarter, analysts expect the company to give fourth-quarter guidance of 1, $31 in earnings per share and nearly $90 billion in revenue. Apple CEO Tim Cook told CNBC’s Steve Kovach: “On the overall outlook, we expect revenue to accelerate in the ninth quarter despite seeing some tough factors.” According to Lip. Consumers are likely to upgrade to new items, he said, as their existing products may be several years old, and “this is the right time to upgrade to those new types of innovations.” .” But Apple isn’t just a defensive stock. According to Lip, it is also growth oriented and the company could benefit when inflationary pressures ease. Easing inflationary pressures will mean capping the 10-year US Treasury yield, which has more than doubled from 1.5% at the start of the year to current levels just above 3%. Rising yields have weighed on stocks, especially growth and tech names that have not performed well in a high-interest rate environment. But Lip believes the 10-year yield is unlikely to exceed 3.5% — a scenario he says Apple would “do very well.”
