CSTNL - Spin-Off Stocks Surprise To Start Q2 - Reviewing Recent Market Newcomers

2024-05-09 04:50:00 ET

Summary

• The spin-off ETF has outperformed the S&P 500® lately as major companies seek leaner operations.
• Pressure from activist investors may also be stirring up spin-off volume.
• As stock splits sour and IPO activity remains light, executives might continue to seek to add value through crafting spin-offs.

Stocks sank in April as inflation fears continued to permeate investors' psyche. Spice in a few weak economic reports on the growth side of the ledger, and the dirty s-word is being tossed around: stagflation. Now, that may be a bit dramatic, and Chair Powell dismissed the notion last week, ¹ but there's no doubt that the Federal Reserve has its work cut out for itself should recalcitrant inflation and ebbing GDP numbers persist over the balance of the year....

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