Certain stocks in the market are not supposed to sell off at any time, and some brands and business models are widely known to be rock-solid and relatively immune to volatility. However, every once in a while, the system throws an unexpected event at these companies, rendering most volatility models useless and leaving most investors holding out for answers.
Today, three retail stocks that might easily pass the argument for being more part of the consumer staples sector have sold off on speculations that the newly appointed head of the United States health department will take a negative stance against fast food brands. Despite being somewhat right about these assumptions, it is clear that these stocks might have overreacted to the news, and that’s where value investors can come into play.
