Who Are the Biggest Losers in This Topsy-Turvy Market?
Anyone involved with investments over the past year or even the past few months has been concerned with the volatility and sagging value of many market segments. If you have significant holdings in stocks including 401K plans or mutual funds you may very well be holding your breath as the overall value drops like a rock one week, then responds positively to global economic conditions the following week. January 2016 presented the most dismal start for a year in recent market history due to such fiscal conditions as the sluggish Chinese economy, slower than anticipated retail sales through the end of 2015, and political moves such as increased interest rates by the US Fed and over-supplies of crude oil.
Such turmoil is concerning to every day trader or long-term investor, but who is feeling the most pain from these conditions?
Both individuals and enterprises are impacted by market volatility and economic factors. Some of these you may not have a great deal of sympathy for, while others may shed some light on opportunities to make profitable trades.
One recent development impacted the well-known celebrity Oprah Winfrey. As a spokesperson and shareholder of Weight Watchers she was directly affected by the recent drop in the company’s shares of 29%. Expecting a loss for the most recent quarter the company CFO Nicholas Hotchkin attributed the drop to marketing and seasonal expenses. Oprah’s share of the loss? A paltry $29 million.
The Russel 3000 index that measures the performance of 3,000 public US companies reported 11 companies on their watch list that suffered phenomenal losses for 2015. Many of these are energy-related companies or those whose profits are closely tied to oil markets, which makes those no huge surprise. Such companies include Chesapeake Energy, Occidental Petroleum, and Conoco Phillips. Of the 11 big losers on the index eight are based in the energy sector. In dollar measurement Apache experienced the single most significant loss – $23.1 billion. Analysts are not optimistic for Apache’s 2016 either, expecting another loss for the company.
Even outside oil-related companies that may still have a long way to before significant earnings improvements come their way, other markets have not walked away unscathed, either. Even tech giant Yahoo posted a loss of $4.4 billion for 2015 with shares down 29% for the year. Analysts remain bullish on Yahoo’s future though, with an anticipated adjusted profit of $502 million for this year.
Even global enterprise General Electric had an accounting loss of $6.1 million, however this is attributed to segments of the company that were either discontinued or sold off. GE labeled these losses as “discontinued operations” and disregarding those net losses of $7.4 billion, the company’s results would reflect a $1.7 billion profit. With those restructuring efforts behind them, analysts look forward to an expected $14 billion in 2016.
Will the Biggest Losers Rebound?
Investors and day traders can utilize indexes to time trades during down periods and transform them into profits. Tracking indexes and analyst predictions online through information available on your broker’s site can give you the information you need to take advantage of swift market movements.
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