With rising economic and geopolitical uncertainties, the focus on 'negative beta' stocks has intensified. These stocks, which have a negative correlation with the broader market, are becoming attractive to investors seeking stability. Evercore ISI has identified Mondelez International and Exxon Mobil as key options.
Mondelez, with a beta of -0.09, has adapted its strategy to cater to budget-conscious consumers, resulting in an 11% stock increase this year. Exxon Mobil, boasting a beta of -0.93, has benefited from oil price fluctuations due to geopolitical tensions, with its shares rising nearly 15% year-to-date.
The S&P 500 has seen an 8% increase this year, but recent declines in tech stocks like Micron and Applied Materials have prompted a shift towards more defensive investments, including Walmart and Procter & Gamble. Investors are also closely monitoring inflation data and geopolitical developments, particularly in the Middle East, which could influence market direction