Middleby Soars

The stock market is having another good day. Yesterday the S&P 500 cracked 3,000 although it couldn’t close above it. This morning, the index has been as high as 3,021. Hopefully we can close above 3,000 today.

The Russell 2000 index of small-cap stocks is doing especially well while the Nasdaq Composite is down for the day.

The European Commission just unveiled a very large stimulus package aimed at helping countries struggling through the economic slowdown. The plan still needs to be approved but the total price tag could be 750 billion euros.

We’ve seen a growing split in this market. “High Beta” stocks, meaning those with greater risk, have been performing much better than the rest of the market. That’s to be expected in a rising market, but it’s been especially dramatic lately. This tells me that the market is becoming more open to risk-taking which is a good thing.

One stock that’s been doing very well lately has been Middleby (MIDD). That’s interesting because it had been such a poor performer before now. At one point, MIDD was down 60% on the year. Since then, it’s up over 70%. That’s still a big YTD loss, but it’s certainly a lot better than before.

Posted by on May 27th, 2020 at 10:06 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.