What the smart money is buying as the market tanks

The Dow and S&P 500 are now both in the red for 2018, and investors have few places to hide as the stock mar...

Posted: Dec 6, 2018 6:40 PM
Updated: Dec 6, 2018 6:40 PM

The Dow and S&P 500 are now both in the red for 2018, and investors have few places to hide as the stock market tanks. But savvy people are finding some pockets of safety.

Gold, an investment that often shines during times of financial stress, is up nearly 4% so far in the fourth quarter while the S&P 500 and Dow have both plunged nearly 10% and the Nasdaq has plummeted almost 13%.

Banking, finance and investments

Business, economy and trade

Economic indicators

Economy and economic indicators

Financial markets and investing

Securities trading

Stock indexes

Stock markets

The rise in gold prices has been good news for miners too. Newmont (NEM), which is in the S&P 500, is up nearly 10% since the end of September. The VanEck Vectors Gold Miners ETF (GDX) has gained about 7%.

Utility stocks and real estate investment trusts, which both pay hefty dividends, have held up well too. The Dow Jones Utilities Average has gained more than 3.5%. The SPDR Dow Jones REIT ETF is up more than 1%.

Yield plays in focus

Another clear sign investors are craving anything that can guarantee them a bit of a return: Investors keep rushing into bonds, despite the yield on the 10-Year Treasury falling to just 2.85%. The iShares 20+ Year Treasury Bond ETF (TLT) has gained nearly 2.5% this year.

Neil Dwane, managing director of Allianz Global Investors, said these more conservative investments might be coming into favor now because investors are realizing that growth in the US this year might be as good as it gets for awhile.

That's because the Federal Reserve has been raising interest rates, the global economy is slowing and the sugar rush from lower taxes and other federal government stimulus should begin to fade.

"People have started to think, 'How much better can the news really get?' The reasons to be as bullish are becoming less evident." Dwane said.

Investors chowing down on food stocks

Another area of the market has held up noticeably better as of late too: food and beverage stocks.

Many of them, like the utilities, tend to pay attractive dividends. But a lot of food and drink companies are staples or affordable luxuries -- the types of things people will continue to buy even if the economy heads south. People may even still pay up for a $5 latte but they aren't going to buy a new $50,000 car.

Starbucks (SBUX) has been one of the better performers in the S&P 500 for the past two months. Shares are up nearly 20%.

SPAM producer Hormel (HRL), frozen french fry company Lamb Weston (LW) and spice maker McCormick (MCK) have also been top gainers in the S&P 500 during the fourth quarter. So have McDonald's (MCD) and Coca-Cola (KO).

So it looks like in these uncertain times for the markets and economy, eat, drink and be merry is one way for investors to profit.

West Lafayette
Overcast
45° wxIcon
Hi: 51° Lo: 42°
Feels Like: 38°
Kokomo
Overcast
43° wxIcon
Hi: 50° Lo: 41°
Feels Like: 36°
Rensselaer
Overcast
41° wxIcon
Hi: 48° Lo: 39°
Feels Like: 35°
Fowler
Overcast
41° wxIcon
Hi: 48° Lo: 40°
Feels Like: 35°
Williamsport
Overcast
44° wxIcon
Hi: 50° Lo: 41°
Feels Like: 39°
Crawfordsville
Overcast
42° wxIcon
Hi: 51° Lo: 43°
Feels Like: 35°
Frankfort
Overcast
46° wxIcon
Hi: 51° Lo: 42°
Feels Like: 40°
Delphi
Overcast
45° wxIcon
Hi: 50° Lo: 41°
Feels Like: 38°
Monticello
Overcast
43° wxIcon
Hi: 48° Lo: 40°
Feels Like: 39°
Logansport
Overcast
43° wxIcon
Hi: 50° Lo: 39°
Feels Like: 39°
Dry and Cool for Remainder of Weekend.
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 160454

Reported Deaths: 4118
CountyConfirmedDeaths
Marion25691791
Lake14023358
St. Joseph9399165
Elkhart9026137
Allen8424230
Hamilton6293114
Vanderburgh601161
Tippecanoe383615
Hendricks3337133
Porter332350
Monroe330338
Johnson3207129
Delaware303474
Clark300763
Vigo268740
Madison244996
LaPorte231760
Cass226922
Warrick199565
Kosciusko193727
Floyd183968
Howard167066
Bartholomew145358
Dubois142726
Marshall142726
Wayne135331
Grant129739
Henry129730
Boone126950
Hancock122344
Noble119135
Jackson116417
Dearborn100028
Morgan97440
Lawrence94037
Gibson91512
Daviess90234
Clinton88916
Shelby87231
LaGrange82115
Knox79510
Harrison78324
Putnam75616
Posey7556
DeKalb74511
Fayette73218
Jasper6435
Miami6425
Steuben6408
Montgomery60422
White59915
Greene55838
Scott53413
Decatur51739
Adams5107
Whitley4696
Ripley4668
Clay4567
Sullivan45214
Wells44211
Starke4328
Wabash4329
Huntington4215
Orange41725
Spencer4046
Washington3843
Franklin37925
Jennings37313
Randolph37210
Fulton3714
Jefferson3455
Pike34018
Perry33314
Carroll33213
Jay3256
Fountain3193
Tipton28023
Vermillion2601
Parke2464
Blackford2313
Newton23011
Rush2254
Owen2101
Martin2010
Crawford1601
Pulaski1602
Brown1463
Ohio1317
Union1120
Benton1090
Switzerland960
Warren891
Unassigned0236

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events