Displaying items by tag: losers

(Atlanta)

Some stocks seem to be rallying for no apparent reason. The only underlying logic being that they got badly beaten up during the COVID meltdown and now look cheap relative to the market’s rebound. Call it the loser’s rally. Delta, for instance, has seen some significant gains in its price despite the fact that the airline business continues to look very bleak. Delta could be considered best-of-breed though, having a much healthier balance sheet than American Airlines.

FINSUM: This is a dangerous game—when stocks that look weak rise for no apparent reason. They will fall sharply when sentiment swings back.

(New York)

One of the big questions investors and analysts are still trying to sort out is who are the biggest market winners and losers as a result of the midterms. Here are some insights. The sector which seems likely to gain most is healthcare, as the risk of more regulation looks diminished, and the chances of increased government healthcare spending (as a result of the election of Democrats in key states) seems higher. The sectors which seem likely to lose out are banks and telecoms, both which seem likely to face much greater scrutiny by the now Democrat-led House.

FINSUM: We would also lump big tech into the losers category as increased scrutiny and regulation of the sector is one of the few areas of bipartisan agreement right now.