How Much $1,000 Invested In Apple, Amazon, Bitcoin, Gold After Friday's Plunge Would Be Worth Upon Return To All-Time Highs

Zinger Key Points
  • Rally seen in the financial market since mid-June has stalled.
  • Opinions are divided over whether this would mark a bottom or the beginning of a fresh downtrend.

Federal Reserve Chair Jerome Powell copped the blame for sending the financial markets into a tailspin on Friday with his hawkish Jackson Hole speech.

Rally Stalls: The setback came even as the markets were fighting back from the weakness seen for much of the first half of the year. Most assets bottomed in mid-June, raising hopes that sentiment may have reversed.

Wall Street analysts and market participants, however, were divided on whether the reversal seen in mid-June marked a sustained uptrend or a bear rally.

Historically, the year-end brings buyers into the market, thanks to the Santa Claus rally. However, September has been a dark horse, when markets have more often been lower than higher.

Louis Navellier, a fund manager, said in a recent note that late September may signal a bottom in the market. Irrespective of the message telegraphed by Powell on Friday, the Fed might not make any major rate move around the midterm elections in November. And if inflation readings over the next few months show a downtrend, the bull-bear tug-of-war could decisively move in favor of the former.

Against this backdrop, here’s a look at how returns from investing in key instruments pan out in the eventuality of these assets retesting their all-time highs.

See also: Now That Tesla Stock Has Split, How Have Wall Street Analysts Adjusted Their Price Targets?

How Do Returns Stack Up? Apple is a blue chip that has the highest weighting in the S&P 500 Index. The stock bottomed at $129.04 in mid-June and was seeing a nice upward bounce until the Powell shocker.

Amazon, Inc. AMZN has been the best performing FAANG stock thus far this year, and given the company’s multiple profit centers, it is one worth tracking.

Cryptocurrencies have also come under significant pressure this year, with Bitcoin BTC/USD trading way off its historical highs. On Saturday and Sunday, the crypto broke below the psychological level of $20,000.

Are you ready for the next crypto bull run? Be prepared before it happens! Hear from industry thought leaders like Kevin O’Leary and Anthony Scaramucci at the 2022 Benzinga Crypto Conference on Dec. 7 in New York City.

Equally interesting would be to look at gold, often considered a safe-haven investment and inflation hedge, and the likely returns it can generate for potential investors if it returns to its heydays.

  • A $1,000 investment in Apple Inc AAPL at Friday’s closing price of $163.62 would fetch a little over 6 shares. If the stock hits its all-time high of $182.94 reached on Jan. 4, the shares would be valued at $1,115.90, a return of about 12%.
  • A $1,000 put in Amazon shares at $130.75 at which they closed on Friday would get 7.7 shares. If the stock does fight its way back to the all-time intraday high of $188.11 reached on Nov. 11, 2021, the same shares would be valued at $1,448.50, fetching a return of 44.9%.
  • A $1,000 invested in Bitcoin at Saturday’s closing price of $20,041.74 would get 0.05 bitcoin. This fractional bitcoin, if the crypto retests its Nov. 10 all-time high of $68,789.63, would be worth $3,439.50, a return of 244%.
  • Gold closed Friday’s session at $1,750.80 an ounce, and the yellow metal had hit a record intraday high of $2,089.20 on Aug. 9, 2020. This would mean gold can generate a 19% return if it reaches this level.
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