Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Stocks That Define 2011

By

With 2011 coming to a close, it's no surprise that Altria and TASER International are the stocks that define the year.

PrintPRINT
Has anyone even had the chance to digest exactly how much has been going on this year? Remember that whole Arab Spring thing? How about the Summer Crash? Inflation, deflation, Fed, ECB, Democrats, Republicans...it's been stressful for everyone. I'm fairly convinced more gray hairs have appeared this year to traders than even in 2008. Despite immense volatility, the S&P 500 has gone absolutely nowhere. Active managers have had an awful year as the whipsaw risk was huge and only known with hindsight.

Having said that, there are two stocks in particular that summarize 2011. Take a look below at the price ratios of the following relative to the S&P 500. As a reminder, a rising price ratio means the numerator/stock is outperforming (up more/down less) the denominator.

Altria (MO) -- Stressed Out? Have a Smoke...



Comments: Aside from the high dividend yield, the outperformance of a company that sells cigarettes in one of the most anxiety-ridden investment environments in recent memory should come as no surprise.

TASER International (TASR) -- Social Unrest? Zap away!



Comments: While the price ratio doesn't look all that great now, TASER significantly outperformed starting in August as the Occupy Wall Street movement took hold and the Summer Crash began. It appears that investors were making a real bet on increased sales of self-defense products.

How will 2012 look? Will social unrest continue and the sideways S&P 500 continue along its path to nowhere? If you've followed my more recent articles calling for a "Winter Resolution," we may be headed for an actual trend, believe it or not (see From Fall Melt-Up to Winter Resolution). Whether it's up or down is not clear just yet, but I think watching the relative performance of TASER and Altria to the market might provide some clues.

Twitter: @pensionpartners
< Previous
  • 1
Next >
No positions in stocks mentioned.

This writing is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction, or as an offer to provide advisory or other services by Pension Partners, LLC in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Pension Partners, LLC expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE