While Markets Nosedive Lower, Phone Stocks and Hedging Stocks are Ripping
As I type the markets are tanking. However, that's on the surface. You have to look deeper to see what stocks and sectors are bucking the trend. Something has just surprised me: telecom and trading-related stocks are outperforming at a BIG level. Check this out:
**AT&T ($T) is up 20% YTD**
**Verizon ($VZ) has climbed about 10% YTD**
**CME Group ($CME) is up about 11% YTD**
**CBOE ($CBOE) is up about 10% YTD**
Let's break this down a bit further:
Telecom and phone stocks are considered to be a bit more resilient in downturns because they serve an essential function: it's how you communicate with friends, family, customers, businesses, and essentially stay in touch with the things that matter most. So, while markets are tanking, some of these telecom and phone stocks are simply ripping. Here's the chart:
https://preview.redd.it/ainzi8xi0pme1.png?width=3020&format=png&auto=webp&s=933fde0b5063825870236f466d566a76dc60ac3c
But it’s not just telecom. **Volatility and trading-related companies are also benefiting from current market conditions.** As uncertainty rises, trading volumes spike, and firms facilitating derivatives trading are seeing direct gains. Futures trading, which CME Group is the leader in, and options trading, CBOE, can thrive in uncertain environments, and the rising interest in hedging strategies can fuel their momentum. Check this out:
https://preview.redd.it/1d8vp4ap0pme1.png?width=3020&format=png&auto=webp&s=51803e961d0306e355b2f1243d685313fa3fc534
I find all of this rather fascinating because while markets tank, there is still some outperformance going on out there. Also, it leads me to wonder what telecom/phone/ VOIP/communication providers might also be worth a play? In terms of trading action, are there other names out there like CBOE or CME? Stocks that specialize in volatility?
This post is entirely for research purposes! Thanks for reading and I hope you found this interesting.
**What other telecom, trading, or volatility-related stocks should be on our radar right now?**