When investors lose trust, they can put stocks in the 'penalty box'

  • 📰 CNBC
  • ⏱ Reading Time:
  • 35 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 72%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

When investors lose faith in management teams after debacles or scandals, they may put stocks of these companies in the ''penalty box.'' Boeing and Wells Fargo are recent examples.

. All three failed to protect their customers' privacy or capitalized on their access to client accounts without approval from them., opening millions of fee paying accounts without consent from its customers. While The Wall Street Journal and the Los Angeles Times had unearthed the relentless cross-selling strategy years earlier, the scandal broke widely in September of 2016 when the Consumer Financial Protection Bureau announced $100 million of fines on Wells.

Since the end of 2018, the stock has climbed over 60%, as investors have forgiven Facebook, or, at least, overlooked its transgressions. Unlike Wells Fargo, which violated an original bank commandment — to keep depositors' money safe — Facebook'sis sharing, not privacy, and its platforms still dominate this market. Also, despite media outcry, the currency of privacy may have a lower value than real money., when personal information on close to 147 million Americans was hacked.

Like Facebook, Boeing is the dominant U.S. player in its field. Once investors feel a higher authority has sanctioned the aircraft, they will likely look forward rather than back.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Investors, and the market overall, buy and sell stocks based on their expectation of future profits. The 'penalty box' for investors for Boeing, exists because they have taken a massive profit hit from the MAX grounding. The second that ends, investors will return.

The wall street elite soon will destroy motivational employment, as in capitalism, by repeatedly trashing investment. Same garbage has been going on for over two years, 9Q+. 90% beat earning's est. nearly all Q, and they get slammed. This Q no diff. Beyond infuriating. Look at it

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:

 /  🏆 12. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The 60-40 portfolio just doesn't 'cut it anymore' in this market, Wharton's Jeremy Siegel saysThe 60/40 ratio of stocks to bonds may not be working for investors anymore, so Wharton finance professor Jeremy Siegel and WisdomTree are putting up a challenge to the traditional model. ETFEdgeCNBC Who is this? ETFEdgeCNBC 🤦🏼‍♂️ ETFEdgeCNBC Is he joking? The 60/40 portfolio had a phenomenal return last year, and is doing well again this year. In 2019, bonds were up 10% and stocks up 30%.
Source: CNBC - 🏆 12. / 72 Read more »