From: James Cramer
Sent: Friday, September 30, 2011 9:14 PM
To: Nicole Urken
Subject: yield screens
Remember, when we sell off like this the goal is to go through all of those yield charts. That’s what I need. S&P, UTES, REITS
It is no secret that stocks in defensive sectors—think tissues and toothpaste galore—and stocks with sizeable dividends have been the sweet spot of the equity markets, which have largely been poleaxed by macroeconomic uncertainty.
After all, in the third quarter, the S&P consumer staples were down a paltry 5 percent versus the 14 percent loss the broader index had to stomach. And the utilities , many which offer attractive yields, were actually up 1 percent in the quarter.
These numbers look pretty darn nice when you compare them to the materials , energy and industrials names, which were each down over 20 percent for the period of June 30th through Sep 30th.
But a key question remains: What now?
While there are many indications that the current climate is not a 2008 déjà vu, as Jim laid out at the top of the show Monday, that doesn’t mean that there won’t be more weakness in store ahead. And the name of the game right now remains: “yield, yield, yield.”