Contrarians Shine In This Fall's Sell-Off
Financials and tobacco stocks help, while tech takes a toll.
Fannie, Freddie, and Big Mo boosted the funds that performed best during this fall's sell-off, while phone and network-equipment companies, chipmakers and other technology firms were the undoing of the hardest hit offerings.
Between the start of September and the beginning of this week, the Nasdaq Composite index dropped nearly 30% as companies lined up to warn of future earnings disappointments and the closest presidential election in living memory failed to produce anything but uncertainty, legal wrangling and rancor. The S&P 500 slid more than 11% between September 1 and Monday and more than 5% since the November 7 election. Even with Tuesday's rally the Nasdaq and S&P 500 are still down 25% and 9%, respectively, from September 1.
Dan Culloton has a position in the following securities mentioned above: CFIMX. Find out about Morningstar’s editorial policies.