Thursday was the last trading day of June and ConocoPhillips (COP) is no longer the top stock in the S&P 100. On June 1st, ten shares of COP were purchased for $114.90 each totaling $1,149.05 and $56.39 in cash was leftover.
Yesterday, the COP shares were sold at a loss for $91.03 for a total proceeds of $910.28. Along with the leftover cash balance, there was a grand total of $966.67 in cash in the bank. The starting testing balance on May 3, 2021 was $1,001.66 so this strategy has returned negative 3.5 percent over the last fourteen months.
For comparison, the S&P 500 exchange traded fund SPY has returned negative 8.4 percent over the same time, including dividends. Market volatility accelerated in June as the SPY hit a year-to-date closing low of $365.86 on the 17th. The SPY ETF has been less volatile but has lost more than the stock picks generated by this strategy. This is illustrated by the following graph.
The market downturn has followed aggressive interest rate hikes by the Federal Reserve. These have led in turn to a rapidly cooling economy and an increasing probability of recession either later this year or next year.
The New Top Stock is… another Oil Stock
Exxon Mobil, the top stock in May, returns to the top. Currently, the top three stocks in the S&P 100 are oil companies. They produce commodities (oil, natural gas, and gasoline) which are doing exceptionally well given their strong demand and tight supply.
Also yesterday, ten shares of XOM were purchased for $88.05 for a total investment of $880.50 with leftover cash of $86.17 ($966.76 – $880.50). Please check back at the end of July for an update. (Had I not been struck with COVID, yours truly would have posted this two days ago.)
