Buckle up, investors! It’s been a wild ride in the stock market lately, with sharp drops and sudden surges leaving many traders feeling dizzy. But amidst the chaos, there are some steadfast stocks that have held strong and continue to see gains. In this post, we’ll take a closer look at why these resilient companies
Buckle up, investors! It’s been a wild ride in the stock market lately, with sharp drops and sudden surges leaving many traders feeling dizzy. But amidst the chaos, there are some steadfast stocks that have held strong and continue to see gains. In this post, we’ll take a closer look at why these resilient companies are outperforming their peers and how you can benefit from their stability in uncertain times. Ready to hop aboard? Let’s dive in!
What are Steadfast Stocks?
Steadfast stocks are those that have not experienced a single day of negative stock price movement over the past year. According to data from S&P Dow Jones Indices, as of September 1, 2018, there were 2,529 U.S. stocks that qualified as “steady” performers — meaning they had not fallen in price for at least one calendar month during the previous twelve months.
This group of stocks has seen mixed results since the presidential election in November 2017. While a total of 193 Steady stocks registered gains during the first nine months of 2018, 171 saw losses. However, since then the market has been on an upward swing and as of September 1st 191 Steady stocks have seen gains while only four have lost stock value.
Given this recent uptick in performance, it’s no surprise that many investors are betting on steady companies to continue outperforming the market in 2019 and beyond. One way to identify these stocks is by using technical analysis tools such as Moving Averages and Bollinger Bands which can help identify trends and signals that suggest a company is headed for continued success.
The History of Steadfast Stocks
The History of Steadfast Stocks
Steadfast stocks have been a mainstay of the stock market for years now. They have seen successes and failures, but they have always remained steadfast in the face of market volatility. What are steadfast stocks? These are stocks that are not affected by short-term market movements, either positively or negatively. This stability has made them popular among investors, who see it as a sign of reliability.
However, steadfast stocks aren’t always easy to find. They often require a higher level of investment than other types of stocks and can be more difficult to trade. Still, those who are able to stay the course with these stocks can reap substantial rewards over time.
How Steadfast Stocks Perform in a Slow Market
Investors looking for reliable stocks to hold onto during a slow market can be confident in the performance of steady stocks. Steady companies typically have consistent earnings, are well-managed, and have a stable track record of delivering shareholder value.
Some of the best performing steady stocks over the past year include Johnson & Johnson (JNJ), Coca-Cola (KO), and IBM (IBM). All three companies have posted positive returns since the start of 2017 despite a volatile stock market. For example, JNJ’s stock is up 6% year-to-date as of publication, while KO’s stock is up 7% and IBM’s stock is up 10%.
These gains aren’t solely due to factors outside of investor control, like global economic conditions or political events. All three companies are well-positioned for future growth and have sound balance sheets. In other words, their cash flow remains intact even in tough times and they don’t need to resort to debt financing to continue operating.
There are plenty of other examples of steady stocks that have performed well during this bear market. Investors can find similar winners by doing their own research and focusing on companies with strong fundamentals and a history of delivering shareholder value.
How Steadfast Stocks Perform in an Active Market
Since 1926, the MSCI All Country World Index (ACWI) has tracked the performance of a group of stocks that are considered to be “steady performers.” These stocks have shown positive returns in 33 out of the past 36 years, even during times when the S&P 500 has seen more volatility.
There are a few important things to know about these steady performers:
They tend to be smaller companies with greater stability and less volatility in their earnings.
They typically hold their value well over long periods of time, even during times of market turmoil.
The ACWI is an index made up of companies from around the world, so it’s not limited to U.S. or European stocks. In fact, one third of all stocks in the ACWI are from outside North America.
Despite a rollercoaster of trading, steadfast stocks are seeing gains. This is due to companies that have been able to weather the storm and remain profitable. Steady earnings reports, coupled with good news about the company’s long-term prospects, help buoy stock prices.