Health Care And Utilities Do Well While Large Corporations Suffer
Stock prices for Utilities and Health Care have been seeing growth as other sectors of the stock market seem to not be doing so well. Health care and Utility are typically not the categories that many investors see large growth in since they are usually what people invest in as a safety net, but while many large corporations don’t seem to be doing so well these stocks are prospering. The fact that these stocks are doing much better than others indicate that economic growth is moving at a slower pace.
This may be a bad sign to investors because they may begin to feel that there is little profit to make on other stocks, and may become less likely to invest their money, and with less investment these stocks may continue to fall downhill. Not only is this bad for these particular stocks but this is also bad for the companies themselves, because the companies will receive less funding to become more efficient at what they do. This also is having a large effect on the global economy, and the timing seems to be very bad, especially when the euro zone and the Japanese Yen seem to bringing the global economy down as well.
Written by; Jessica ho
Source: The Wall Street Journal