BREAKING NEWS Finally Feeling Like Fall Full Story

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 5:40 PM
Updated: Dec 6, 2018 5:40 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%.

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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.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 497790

Reported Deaths: 9917
CountyCasesDeaths
Harrison34102530
DeSoto31839398
Hinds31837622
Jackson24314377
Rankin21881388
Lee15427234
Madison14525279
Jones13772241
Forrest13412250
Lauderdale11937314
Lowndes10934185
Lamar10470135
Pearl River9431237
Lafayette8454138
Hancock7697126
Washington7365156
Oktibbeha7111129
Monroe6727174
Warren6642176
Pontotoc6609101
Neshoba6606205
Panola6460131
Marshall6386132
Bolivar6266145
Union596094
Pike5784152
Alcorn5633101
Lincoln5417134
George491879
Scott470998
Tippah465381
Prentiss464181
Leflore4627143
Itawamba4596104
Adams4570119
Tate4546109
Copiah445191
Simpson4421116
Wayne438572
Yazoo438586
Covington427394
Marion4216107
Sunflower4215104
Coahoma4115104
Leake407787
Newton380879
Grenada3692108
Stone358464
Tishomingo356391
Attala330289
Jasper328265
Winston313191
Clay306375
Chickasaw296767
Clarke290694
Calhoun277945
Holmes266987
Smith262550
Yalobusha232647
Tallahatchie225251
Walthall217763
Greene215548
Lawrence211140
Perry204755
Amite203954
Webster201645
Noxubee185340
Montgomery179056
Jefferson Davis170642
Carroll167438
Tunica158639
Benton147438
Kemper141241
Choctaw133026
Claiborne131237
Humphreys129038
Franklin119128
Quitman106227
Wilkinson104539
Jefferson94234
Sharkey64020
Issaquena1937
Unassigned00

Alabama Coronavirus Cases

Cases: 813481

Reported Deaths: 15179
CountyCasesDeaths
Jefferson1139971910
Mobile722271323
Madison51970686
Shelby37279341
Baldwin37069540
Tuscaloosa34934599
Montgomery33953725
Lee23142240
Calhoun22142470
Morgan20639372
Etowah19758496
Marshall18245300
Houston17302405
St. Clair15912337
Cullman15306290
Limestone15202198
Elmore15075284
Lauderdale14143294
Talladega13715272
DeKalb12569259
Walker11085366
Blount10094174
Autauga9893146
Jackson9789180
Coffee9182189
Dale8859181
Colbert8789200
Tallapoosa7044195
Escambia6732127
Covington6682179
Chilton6587160
Russell625958
Franklin5930105
Chambers5559142
Marion4955126
Dallas4882199
Clarke472782
Pike4719105
Geneva4564126
Winston4473101
Lawrence4264117
Bibb421686
Barbour355475
Marengo334089
Monroe330262
Randolph327063
Butler324794
Pickens313882
Henry310965
Hale309187
Cherokee299957
Fayette290679
Washington250951
Cleburne246958
Crenshaw243575
Clay240367
Macon230562
Lamar215846
Conecuh185652
Coosa178538
Lowndes173761
Wilcox167438
Bullock151744
Perry138040
Sumter131038
Greene125544
Choctaw86927
Out of AL00
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Tupelo
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Hi: 72° Lo: 44°
Feels Like: 40°
Columbus
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Hi: 72° Lo: 45°
Feels Like: 44°
Oxford
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Starkville
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A cold front passing through our area overnight will bring into our area some of the coolest temperatures of the season so far. We will see most of the highs this weekend only in the upper 60s to lower 70s. While overnight lows will drop off down into the 40s Saturday night.
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