If the US is heading into a recession many analysts and investors consider Amazon stock to own through a recession. Amazon’s business revenue has diversified in recent years and its price competition feature for sellers means that Amazon prices can respond very quickly to a need for lower prices. In the event of a recession, buyers will come online to Amazon and price compare against other e-commerce sellers.
Amazon’s stock is also about to enter a really strong seasonal pattern. Between June 25 and July 23 Amazon stock prices have gained 10 times in the last 10 years and not lost value once. The average gain has been 7.40% and the smallest gain was 2.70% in 2012. Will Amazon shares gain again this time?
Major Trade Risks: If the Federal Reserve is forced to act more forcefully in hiking rates then it is reasonable to expect more selling in stocks.
Our products and commentary provides general advice that do not take into account your personal objectives, financial situation or needs. The content of this website must not be construed as personal advice.
Recommended content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.