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And the Winner is....

As I mentioned in my previous blog in May about Race to Trillion, last week we did see first modern-day trillion $ market cap company. And the crown went to Apple as expected. As Q2 results started pouring in, it was clear that one of the two companies (Apple or Amazon) would claim the title. Both companies along with other two contenders Alphabet and Microsoft announced outstanding results and continued the momentum towards trillion. I won't be surprised if we see another trillion $ company in 2018 and most likely it would be Amazon. By end of 2019, expect all 4 companies to have crossed this milestone. Looks like Trillion is the new $500 Billion (of dotcom days).
Lots of interesting events have happened in month of July. France won its third Soccer world cup, escalation in tariffs "war of words", continued early-morning twitter meltdown of President Trump, Fed staying the course of raising interest rates. Despite all of these potential market moving news (except France's win), markets continued to establish the base and make steady upwards progress recovering from Feb lows. So what happens from now till end of year with mid-term elections in Nov and tariffs discussions (or lack of)? My prediction is that high-techs which got crushed (INTC, NFLX, FB, TWTR) would continue to trade sideways till close of Q3. The horsemen of trillion would continue to  make their march towards the milestone. The real breakout (or breakdown) will happen in Oct when Q3 results start coming in and mid-term elections prediction polls stabilize. Till then, I am cautiously optimistic!
/Shyam



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