Exact(7)
Miners were among the leading fallers as the appetite for safer stocks returned.
So investors are looking for safer stocks, and utility companies are fitting the bill.
If low-volatility funds were concentrated in "safer" stocks like dividend-rich utilities and major energy producers in 2011, unless they shifted gears to match market sentiment for this year's favored sectors, they might fall victim to "sector rotation," as professional money managers shift into other industries and sell the favored stocks of the previous year.
More broadly, investors have spent the final days of the third quarter cashing in their gains on riskier stocks and moving into bonds and safer stocks, like consumer discretionary companies that are not as susceptible to a downturn in the economy.
Depending on your willingness to take risk, you could own bigger, safer stocks or smaller, riskier ones.
That is, instead of paying higher valuations per unit of expected return for safer stocks, they are paying more for riskier ones.
Similar(53)
So did something called the Car of Tomorrow, a boxier but safer stock car.
Investors have been buying safe stocks in the consumer sector and getting out of financials.
The search for safe stocks has led investors to companies that do well even in a tough economy, like Johnson & Johnson and Procter & Gamble.
It used to be that utility companies were the safest stocks for investors to buy, slow growers favored for their stable earnings and predictable dividends.
C1 Uncertainty for Utilities Utility companies were once the safest stocks for investors, slow growers favored for their stable earnings and predictable dividends.
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