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Even with vaccinations now becoming widely available, stock market optimism is not what it was just weeks ago. After rallying significantly pre-election on hopes that the effects of the Covid-19 virus would diminish and mostly disappear, investors seem to be having some second thoughts.
Here are 5 well-known equities that made new highs last year and have since shown weakness as the new year unfolds. These price charts of big names show how steadily the selling has overcome the previous buying. It may be that the rise in 10-year Treasury yields is having an effect but whatever it is, these stock trends are now downward.
Amazon’s daily price chart:
Amazon daily price chart, 2 27 21
Former CEO Jeff Bezos is living in his new mansion with 34 bathrooms but the stock he’s been overseeing lately is not impressed. Just as he ascends to “Executive Chair” — which is late capitalism for “Royal Throne” — Amazon the equity can’t seem to approach much less exceed that 2020 peak price.
Facebook’s daily price chart:
Facebook daily price chart, 2 27 21.
Poor Mark Zuckerberg. He built the best, most sophisticated data-collection operation in social media history, became hailed as a hero on Wall Street and now stock buyers are more interested in whatever Cathie Wood is adding to her ARKK portfolio. Not a lot of Facebook apparently, as the Facebook price chart these days seems to be saying “Mark who?”
Merck’s weekly price chart:
Merck weekly price chart, 2 27 21.
The huge drug manufacturer hit its highest price in late 2019 and is unable to go further. But it gets worse: the stock this week dropped below its 2020 low prices. This is known as “breaking support” and, typically, it’s not a good sign. Will Merck be able to hold those March, 2020 lows? The company’s dividend of 3.58% must not seem as attractive as it once did.
Proctor & Gamble’s daily price chart:
Proctor & Gamble daily price chart, 2 27 21.
The household and personal products company (aka “toothpaste”) peaked in November, 2020. The stock closed out February, 2021 at the month’s low prices. Are the March, 2020 lows of 100 or just lower the next significant support level for Proctor and Gamble?
Unilever’s daily price chart:
Unilever daily price chart, 2 27 21.
Unilever is another big name in the household and personal products sector and like Proctor & Gamble, it’s been unable to retake the peak price from late 2020. The stock closed last week on the low price for the month of February — and the low of the year 2021, so far. The firm’s paying a 3.67% dividend which is still greater than the 10-year Treasury, at least for now.
Meantime, Bitcoin and other cryptocurrencies have blasted upward. It’s an odd situation to behold classic investment assets like stocks and bonds drop lower as an entirely new class of assets skyrockets dramatically. And we’re not even done with the first quarter.
I do not hold positions in these investments. No recommendations are made one way or the other. If you’re an investor, you’d want to look much deeper into each of these situations. Always do your own independent research, due diligence and seek professional advice from a licensed investment adviser.
Metrics courtesy of FinViz.com
My Marketocracy work is profiled in The Warren Buffetts Next Door: The World’s Greatest Investors You’ve Never Heard Of by Forbes Investments Editor Matt Schifrin. I’m a