As the first quarter comes to an end, the bond market is calling for a recession for the first time in more than a decade, leaving investors scrambling to figure out what to buy and sell. If history is any guide, there's a pattern in the stock market to follow.
Now, which stocks would work the next quarter and beyond if this red flag from the bond market turns out to be right and the economy is in trouble? The S&P 500 utilities sector has posted a nearly 10 percent gain on average six months after the yield curve went upside down, while the S&P 500 consumer staple sector scored a 8 percent return, Kensho data show. The S&P 500 on average has lost 0.19 percent six months after an inversion.
"At an individual stock level, nearly every food, beverage, and home & personal care in our study outperformed on average during periods of declining Treasury yields," Rupesh Parikh, senior equity analyst at Oppenheimer, said in a note on Thursday.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stock market winners list so far this year features odd bedfellows in 'FANG' and utility stocksStocks that act more like bonds are what investors prefer at the moment. Orthodontist tells me you can fix a FANG by putting having braces installed
Source: CNBC - 🏆 12. / 72 Read more »
Tesla’s biggest supporters on Wall Street are nervous about the company's first quarter resultsEven the staunchest of bulls are worried about Tesla's results this quarter.
Source: BusinessInsider - 🏆 729. / 51 Read more »
U.S. economy grew a slower 2.2% in the fourth quarter, revised GDP figures showThe economy grew somewhat slower in the final three months of 2018 than it originally appeared, largely because of softer consumer spending and a weaker climate for business investment that’s likely to depress growth in the first quarter as well. The government cut fourth-quarter GDP growth to 2.2% from 2.6%. magaFail JeffersonObama Paging liar devinnunes.
Source: MarketWatch - 🏆 3. / 97 Read more »
Euphoric IPO market may be a troubling sign for stocksThe eagerness by companies to list may signal a scramble to tap public markets before things go south. Y this all happening, all of a sudden, plane crash now thus sad back, find which country is involved
Source: CNBC - 🏆 12. / 72 Read more »
Stocks head for best quarter in 7 years despite rising fears of a recessionIt's not just that the S&P 500, up 11.9 percent, is having its best quarter since 2012. Everything is up, including stocks and bonds. Man do we never learn from our mistakes? A recession is coming and people are throwing their money into an inflated market that will just crash. mayb the ones calling for a recession r wrong but i doubt they wld ever admit it
Source: CNBC - 🏆 12. / 72 Read more »