Stocks have been impressively resilient. The market handled the Iran news like a trooper. Meanwhile, Waste Management Inc. (WM) is a “garbage king” that’s delivering as advertised so far, notes Tom Hutchinson, editor of Cabot Dividend Investor.
It seems like the default position of investors is optimism. Stocks seem to want to go higher. The market made up the tariff panic in short order. Rates have remained stubbornly high. The news from the Middle East is wild. Yet stocks are within bad-breath distance of the all-time high.
I believe these issues will turn out okay and the market will be higher than it is now by the end of the year. But it’s hard to see how stocks generate lasting upside traction until there is more clarity on the current issues. And that could take many months.
Waste Management Inc. (WM)
Meanwhile, WM faced a huge defensive test shortly after being added to the portfolio...and it passed. WM fell sharply but then gained back all the losses.
The stock was later under some pressure while many other stocks soared amid the improved tariff news and the “risk on” mood. But WM regained its footing and recently made a new high before pulling back somewhat in June. WM should continue to be solid in just about any kind of market.
Recommended Action: Buy WM.
