The crowd is chasing high-beta homeruns.
The rally off the April lows has left high quality stocks behind as speculative names have outperformed.
High quality stocks are the big opportunity right now.
Despite strong fundamentals, “best of breed” stocks like Apple, Visa, Coca-Cola, Eli Lilly and Costco have lagged, while unprofitable AI, robotics, quantum and nuclear momentum plays have soared.
The S&P 500 Quality Index tracks the 100 highest quality S&P 500 names as measured by their S&P Quality Ranking. It’s trailed the S&P 500 by 9% over the last 6 months, marking one of its weakest stretches of underperformance ever.
Today, we’ll show you why it’s time to buy the dip in high quality stocks. Then we’ll show you why the quality factor’s sector composition offers a winning combination of offense and defense that’s well suited to current market conditions.
Finally, as a bonus, we’ll wrap up with a sector diversified list of 25 high quality names seeing big money buying.
Disclosure: This recap uses AI to better explore our post here: https://moneyflows.com/blog/high-quality-stocks-are-the-big-opportunity-right-now/Remember none of this is personal advice of any kind. This is for entertainment and informational purposes only.