As 2018 Closes, Investors Are Going For Boring Stocks
According to recent reports, Wall Streetis loading up on boring, sloppy stocks, as the year comes to a close. Investors are saying that this is a sign that market volatility will continue to rise.
Recently, staples and utilities are underperforming and under the broader market. According to the Consumer Staples Select Sector SPDR ETF (XLP) – both XLP and XLU are higher and up by 5.95% and 4.1% respectively.
Additionally, it is also being said that staples ETF were higher and on pace, to post a monthly winning streak. The S&P 500 lost over 5% in terms of value time.
According to Ryan Derrick, senior market strategist – LPL Finance, people are a little defensive at the moment. There is a lot of uncertainty in the market and around trade as well. Therefore, people are not willing to make big bets at the moment.
Moreover, shares of staples such as Procter & Gamble, Mondelex International, and Clorox, increased by over 5%.
On the other hand, Apple lost its value as the world’s most valuable public company to Microsoft right now. Currently, Microsoft is the world’s most valuable company in the world.
At the moment, Apple’s market valuation, which is based on its outstanding share count, will be about 4745398000 shares. It is behind $847.4 billion and now stands at $178.58 per share.
Moreover, Apple got a significant ‘trillion dollar market capitalisation’ in August, as it became the first publicly traded US company to rise to a historic valuation.
Amazon, on the other hand, crossed the 3 trillion dollar mark during intraday trading.
On the other hand, Apple’s stocks have had very painful few weeks. On the other hand, Microsoft stocks dropped in the last four-five years. Microsoft’s closing price settled at an all-time high of $115.61 on October 1.
Additionally, on Friday’s close, Microsoft had a market valuation of $851.2 billion, as it settled at $110.89 a share.
Apple’s stocks have now raised to brand new highs too. It has had painful few weeks and its earnings dropped on Nov 1. On the other hand, Microsoft stocks tripled in the last 4 and a half years.
Moreover, on Friday’s close, Microsoft ended its year as the most valuable company in the world. Apple’s had a painful few weeks but its shares have lost about 16% of their value in the previous month.
On the other hand, Microsoft’s closing price shows that tech stocks are up and tech stocks are significantly higher too.
Moreover, Apple’s eclipse – which is a trillion dollar market capitalization, rose to August as the first publicly traded US company to have a historic valuation.
Additionally, tech giant Appleis teaming up with Amazon in order to control Apple Music with Alexa. Apple Music will now be available on Amazon’s Echo Devices during the start of the week – December 17th.
Lastly, though, Apple lost its spot as the world’s most valuable public company – to Microsoft just recently.
Nonetheless, Apple has had certain painful weeks but things are going to take a U-Turn very soon, as the year comes to a close.
Stay tuned for more updates at The Tradable.