FOMO check: Everyone's saying "Coca-Cola hit a record, it's a safe haven, it'll go higher." The stock is +40% in a year.
→ Since 1995, in 2 of the 3 times it hit a record after a 30%+ run, it was lower one year later
→ From the 1998 peak it fell −57.8% by 2003, and took 16 years to get back to that peak
I think the company may be a safe haven, but the price isn't; a defensive stock bought at a record can fall too. Worst case: if Coca-Cola closes below its July record of $89, the breakout fails and those who bought at the top get squeezed.
Watching: $KO $DIA $SPY
#Stocks #DowJones #Economy
→ Since 1995, in 2 of the 3 times it hit a record after a 30%+ run, it was lower one year later
→ From the 1998 peak it fell −57.8% by 2003, and took 16 years to get back to that peak
I think the company may be a safe haven, but the price isn't; a defensive stock bought at a record can fall too. Worst case: if Coca-Cola closes below its July record of $89, the breakout fails and those who bought at the top get squeezed.
Watching: $KO $DIA $SPY
#Stocks #DowJones #Economy
