Diamonds and Dogs
Brexit shocker means another risk off day. Any stocks with UK or European exposure like the banks (Barclays) have been taking a hit. Today's dog is Ryanair (RYAAY) the passenger-airline service provider based in the UK (enough said). The stock dropped 10% even though management said bookings have remained strong despite last week's Brexit vote. Unfortunately investors are focusing on the CEO's comments from last week when he said an economic downturn lasting two or three years could occur if the Brexit vote passed, and the company's budget-conscious customers could be hit hardest.
Boring is beautiful. After the Brexit vote, it's a risk off market with money flowing to boring stocks like utilities, consumer staples and telecom. Many US utilities made 52 week highs, but today's diamond is Japanese based utility, Nippon Telephone and Telegraph (NTT) up 5%. No real news on the stock, but a major restructuring to unlock value may be finally coming to fruition.
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