The ups and downs of the market agitate investors to the point where they feel like you need to take a motion sickness pill before looking at a stock chart.
A concrete example? There is now a group of nearly 100 top-tier companies in the Russell 3000 Index which Bespoke Investment Group has dubbed the “50/50 Club”. Stocks are both down 50% from their 52 week highs AND up 50% from their 52 week lows.
It is volatility with a capital V.
You probably won’t be surprised to learn that one of the most important companies on this list is GameStop (, which has become the quintessential store of memes. )
GameStop was boosted by social media fans who believe in the new management’s turnaround strategy, but also pushed down by short sellers who are questioning the valuation of the company.
Stocks are down about 65% from their peak, but remain over 4,400% of their 52-week low.
“If GameStop’s performance this year has shown us anything, it’s been a crazy year for the stock market,” Bespoke analysts noted in a 50/50 report.
But GameStop isn’t the only well-known stock to bungee jumping this year.
Media giants ViacomCBS ( and )Discovery (, which were dragged down by the implosion of the prominent Archegos Capital Management family office, are also on the 50/50 list. (Owner of CNN )AT&T ( announced earlier this month that its WarnerMedia unit will merge with Discovery.) )
Covid-19 vaccine manufacturer Novavax (, software company and bitcoin bull )MicroStrategy (, online insurer Lemonade, e-commerce clothing company )Point correction (, )Bed bath and beyond ( and owner of LaCroix )National drink ( are some of the other 50/50 group companies. )
These stomach-churning movements can be unsettling. But investors need to get used to it. High-level actions will continue to be criticized.
“There are so many retail investors out there,” said Matt Stucky, equity portfolio manager at Northwestern Mutual Wealth Management Company. “There was more episodic volatility that got a lot of attention. “
Inflation worries don’t help either. Investors alternate between fears that the Federal Reserve will cut bond purchases and raise rates sooner than expected and hope that more vaccinations and returning to work will lead to sustained economic growth and profits.
“The time we are in is unprecedented given the magnitude of the market downturn last year and the rebound in recent months. It doesn’t surprise me to see weird numbers with some individual companies, ”said Michael Reynolds, vice president of investment strategy at Glenmede.
“Volatility also shows how difficult it is to predict economic variables and earnings,” added Reynolds. “We’re on the way to some semblance of normalcy… but there will be the hiccups. “
Apple’s rivals may never be able to catch up with its new chip
At the start of the testing phase of Apple’s M1 chipset, the processor was installed in a batch of Mac computers and handed over to staff members working on applications requiring high processing power.
It was the first time Apple ( had made its own chip for one of its computers, abandoning years of using a unique Intel option. )
After several teams tested the devices for a few hours while working on tasks, they reported super-fast performance, but almost all reported an apparent problem. The MacBook Pro’s battery indicator, located in the upper right corner of computers, was broken. He had barely moved despite running energy-intensive programs, the company told my colleague Samantha Murphy Kelly.
The gag, of course, is that the battery indicator was working great. The M1 chip was so efficient, according to Apple, that it showed no real stress – one of the many major selling points for products that now carry the chip.
The company launched its first line of iMac and iPad Pro with M1 on Friday (the M1 MacBook Air, 13-inch MacBook Pro, and Mac mini shipped late last year). Early reviews praised the models for unmatched speeds, long battery life, and better graphics, all thanks in part to the processor.
Now, Apple ( has a big advantage over its competitors. )
“The main reason it will take some time for other PC vendors to catch up with Apple is that most of them don’t control all of the hardware and software,” said Jitesh Ubrani, head of research at Apple. within the market research firm IDC. “This tight integration between the two is Apple’s main advantage. “
Monday: Lordstown Motors revenues
Mardi: New home sales in the United States; Consumer confidence data; Revenue from AutoZone, Intuit, Nordstrom, Toll Brothers and Urban Outfitters
Wednesday: EIA crude oil inventories; Revenues from Abercrombie & Fitch, Dick’s Sporting Goods, American Eagle, Nvidia and Williams-Sonoma
Thursday: Unemployment claims in the United States; Profits from Best Buy, Dollar General, Dollar Tree, Medtronic, Costco, Dell, Gap and Salesforce.
Friday: Personal income and expenses in the United States; PCE price index; Jackpot wins