The big ones keep getting bigger.
Go through the list of 52 week highs (see a few names below) in the all-time high stock market right now, and it’s a who’s who of big-cap, big-name companies.
The stocks mentioned here reflect a few themes played by investors through 2022: a likely increase in consumption of food / consumer products at home with the raging Omicron variant (Hershey, Coca-Cola, McDonald’s, Mondelez, Proctor & Gamble, Constellation Brands, Yum! Marques); strong health care plays in the midst of the ongoing pandemic (Abbott, McKesson, Zoetis); the names of the economic recovery (Norfolk Southern, Paychex, Hilton); the hot US housing market continues (Home Depot, Sherwin-Williams).
Coca Cola (KO)
South Norfolk (NSC)
Proctor & Gamble (PG)
Sherwin Williams (SHW)
Constellation Brands (STZ)
Yum! Brands (MIAM)
CME Group (CME)
Home deposit (HD)
Of course, the upward moves in these large cap stocks come as the broader market remains in full Santa Claus Rally mode despite the rapidly spreading COVID-19 pandemic. Therefore, investors feel encouraged to increase these stocks even though they are far from cheap from a valuation perspective.
The S&P 500 (^ GSPC) on Wednesday posted its 70th closing record of the year. It was the second most record-breaking close for the S&P 500 in a calendar year. In 1995, the S&P 500 set 77 closing records according to Bloomberg data.
Most on Wall Street expect the rally to continue through early January, reflecting favorable seasonal factors such as fund managers making new bets for the new year.
“We encourage our customers not to go out, to stay in the market. When recoveries strike, when sentiment changes, it happens so quickly that often by the time you are able to come back to the market, you’ve already missed something, ”said Erin Gibbs, chief investment officer at Main Street Asset Management, on Yahoo Finance Live.
In other words, the big one… can keep getting bigger.
Brian Sozzi is an editor and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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