Thursday, December 3, 2015

Market Peculiarities

It's always amazed me how some individual stocks act in regards to the overall market behavior. Even though the market has just corrected and subsequently climbed back towards the highs set over the summer there are some great companies with completely divergent paths.

For example Whole Foods(WFM) and Costco(COST) have completely divergent charts right now despite having one big similarity. They are the nations two largest sellers of organic food. Yet one has been trading near yearly lows while the other is sitting at fresh all time highs. I'm an ardent fan and customer of both companies.

Or in the payment processing space there is American Express(AXP) and Global Payments(GPN). Both serve the purpose of facilitating financial transaction processing for customers and merchants. While you may never know you're using Global Payments or an American Express network at checkout, you will know when you're using an American Express card.

Sometimes good companies get taken to the woodshed. Which is what provides smart investors a great buying opportunity.  Other times they can become over valued which is what we must be careful of when investing.

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