As Apple Stock Flirts with Bear Market Territory, Should You Buy the Dip or Steer Clear?

Apple (AAPL) shares are down over 18% from their record highs and are on the verge of entering a bear market, which by definition is a drawdown of 20% from the peak. The escalating trade war is taking a toll on AAPL stock, and while there was a relief rally in tech names on March 12, Apple was the only “Magnificent 7” constituent that closed in the red.

On Monday, March 10, Apple fell 4.85% as U.S. stocks crashed amid fears over the trade war and rising risks of a U.S. recession. It was AAPL’s worst day since Sept. 29, 2022, when it fell nearly 5%. In a previous article, I noted that Apple’s risk-return looks unfavorable. The stock’s selloff has only worsened amid mounting concerns. Notably, the crash in Apple stock – which is seen as a relatively safe bet during periods of turmoil – is not a good piece of news for the broader market either.