Gulf Widens Between Haves and Have Nots
Posted at 6:06 p.m. EDT on Friday, May 29, 2015
The dichotomy between what is working and what isn't has grown gigantically near the end of what turned out to be a pretty darned good month.
If it is being acquired or doing the acquiring, it goes higher. If it takes out capacity in its industry, then all the companies in the sector also go higher.
It's hard not to be giddy if you own a consolidator or the consolidated. You think we are in a rip-roaring bull market if you own Avago (AVGO) or NXP Semiconductors (NXPI) or Altera (ALTR) or Intel (INTC). You can't believe how strong this market is if you are in a health care cost container, especially if it is Humana (HUM).
On the other hand, if you are just sitting on a plain old industrial, you are thinking, "When did this good market just morph into a bad one?"