The Flight to Quality Is Sometimes a Round Trip
Tuesday was a great day to be long the market. The three major market indexes soared 8% to 11% higher, and you probably had several stocks in your own portfolio bust out with double-digit percentage gains.
Obviously not every stock moved up during Tuesday's rally. A handful of stocks bucked the buoyancy, and you probably won't be surprised to find that many of the day's laggards just happened to be some of the biggest year-to-date leaders. A flight to quality sent investors scrambling into some of these stocks in recent weeks, following the narrative that they are among the few companies positioned perfectly to thrive through the coronavirus crisis. With investors feeling a little more confident about Wall Street's near-term prospects, it's only natural that some of the money should rotate out of these bear-market-bucking winners.
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Source Fool.com
