As stock volatility returned in August and September following a long lull, one of the market trends I identified was the disproportionate selling of some of the largest and most defensive blue-chip companies. If this seems counterintuitive to you, then you're not alone.
In times of increasing market volatility, one would expect money to flow into those companies best able to: 1) protect their revenue and earnings streams; 2) self-fund operations; 3) pay a competitive dividend yield; and, of course, 4) avoid financial distress. But this year I really haven't seen that flight to quality.
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