Watching the British Pound plummet to historic lows and stock markets sharply sell off can be shocking to say the least. People are scared and markets hate uncertainty.
What I find interesting are the pockets of safety that occurred today during the sell off. Other than the U.S. dollar, gold, silver, and U.S treasuries rallying there are a few stocks that are holding there own during the market sell off.
Noticeably the following:
|Hormel Foods Corporation||HRL||2.52%||$35.46|
|Campbell Soup Company||CPB||0.75%||$63.11|
|Reynolds American Inc.||RAI||2.03%||$51.87|
The above is just a small sample of stocks that I came across today. All of them are up except for Tootsie Roll which is down slightly.
What do the stocks above all have in common? They are brands that people know, companies that have been around along time with a great track record. They sell things or offer a service where people keep coming back and show up for more. They all pay a dividend and have done so for years. These are incredible moves as the Down Jones has sold off over 500 points today!
There is safety in stocks, and I while I don’t know what will happen next week or next month I believe we will start seeing a trend into safe stocks and a move away from government bonds.
As I mentioned before, we could still see a drop in stocks including the ones above, and one last push for government bonds. Looking out over the years to come I would rather own safe companies than “safe” long term government bonds.by