Winners And Sinners
Mike Zaccardi, CFA, CMT | Jan 17, 2022 03:24AM ET
This article was originally published at the 1% last week, even as Vanguard Total Stock Market Index Fund ETF Shares (NYSE:VTI) slipped 0.5%.
Let’s further unpack these trends.
The NASDAQ Composite has endured its 5% in 2022.
A heat map illustrates the story. Shares of some emerging market companies—such as Alibaba (NYSE:BABA) and Taiwan Semiconductor (NYSE:TSM)—are red hot, higher by more than 10% in the past two weeks. Meanwhile, energy stocks are in the black on the heels of rebounding oil prices. Brazil’s Petroleo Brasileiro (NYSE:PBR), China’s PetroChina (NYSE:PTR) and France’s TotalEnergies (NYSE:TTE) are green across the board—each up by about 15% this year.
On Friday morning, the market digested the monthly University of Michigan Consumer Sentiment survey. That report showed buying conditions for vehicles were at their used car prices are through the roof. A key reason: Semiconductor chips are extremely hard to come by, thanks to the pandemic.
Moreover, last Wednesday’s Consumer Price Index report showed used car prices up a whopping 37% from a year ago, while the sticker price on the average new vehicle is 12% higher. How are large-cap value stocks like Ford (NYSE:F) and Toyota (NYSE:TM) doing amid this car crisis? Ford’s shares are up 21% in 2022, while Toyota has climbed 14%.
As value-oriented international markets, stable dividend stocks, oil and gas companies, and traditional automakers rally, shares of innovative tech companies are down big. Zoom Video (NASDAQ:ZM), Teladoc (NYSE:TDOC) and Robinhood (NASDAQ:HOOD) are all more than 70% below their pandemic peaks. It’s almost like the 2000-02 dot-com crash all over again.
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