Hindenburg Omen Fails to Deter, Poll Says
NEW YORK (TheStreet) -- Despite recent Hindenburg Omen occurrences stoking fears about an impending stock market crash, readers of TheStreet still believe that putting their money in stocks is better than putting it in bonds.
The Hindenburg Omen is a technical indicator of a looming stock market crash. It's believed that two Hindenburg Omen occurrences within a 30-day period can trigger this type of disaster in the stock market.
In our poll, 72.4% of users indicated that they currently find stocks more attractive than bonds.
At the same time, 27.6% of those surveyed are more attracted to bonds than stocks.
According to investment experts that
TheStreet
spoke with, consumer stocks are likely to fare better in the event of a major market pullback. Hennessy Funds' Frank Ingarra also suggested diversifying into
Verizon
(VZ) - Get Verizon Communications Inc. Report
and other Dow stocks.
In light of this, we also asked readers which consumer stocks they would invest in, in the event of a stock market crash. The stock garnering the largest portion of votes was
Altria
(MO) - Get Altria Group Inc. Report
at 20.7%.
McDonald's
(MCD) - Get McDonald's Corporation Report
TheStreet Recommends
followed with 18.8% of the votes.
Stifel Nicolaus analyst Christopher Growe recently told clients in an investor note that the average yield spread for Altria compared with the 10-year treasury stands at positive 1.1% over the last 24 years.
Meanwhile, 17.6% of the votes went to
P&G
(PG) - Get Procter & Gamble Company (The) Report
, evenly split with
J&J
(JNJ) - Get Johnson & Johnson Report
; 15.2% went to
General Mills
(GIS) - Get General Mills Inc. Report
and 10.2% went to Verizon.
Last Friday, citing
Sentimentrader.com
,
RealMoney.com
contributor and CEO of
Shark Asset Management
Rev Shark noted in his column that we had a second Hindenburg Omen trigger Aug. 19.
"Some technicians regard this as confirmation of the first reading and therefore a much more dire situation ... it isn't just a sensationalistic name," Shark wrote. "There has tended to be a pattern of weakness when the Omen is triggered."
-- Reported by Andrea Tse in New York.
RELATED STORIES:
>> Hindenburg Omen: In a Market Crash, Which Consumer Stock to Play?
Get more stock ideas and investing advice on our sister site,
Follow TheStreet.com on
and become a fan on
Follow Andrea Tse on
and become a fan on
Copyright 2010 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
