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Barchart
Barchart
Josh Enomoto

Why the Smart Money is Hedging for Potential Downside in Cisco (CSCO) Stock

If you had to pick a technology name to stick with for the long haul, you’d be hard pressed not to consider Cisco (CSCO). Specializing in networking products and services, Cisco isn’t particularly exciting. However, it will almost certainly be perpetually relevant. Plus, the company provides a decent 2.64% annual yield. No, it’s not overwhelmingly generous but you’ll get rewarded for merely holding the security.

Subsequently, it would take a brave soul to bet against CSCO stock. Unless there is a compelling reason to do so, you should default to giving the underlying enterprise the benefit of the doubt. The one exception possibly is if the smart money took a contrarian bet against it. While it’s an incredibly nuanced argument, the institutional money may not be feeling chipper about CSCO’s prospects.

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