Strikes Versus Stocks
There are strikes on every corner this year, it seems. From airlines, to the auto industry and Hollywood, American workers are fighting to get their voices heard. In 2023, roughly 450,000 workers have participated in more than 300 strikes, per Cornell University’s Labor Action Tracker .
Companies in the midst of contract negotiations with their workforce have to worry about their productivity and how much lengthy negotiations might cost them.
However, despite this turbulence, Wall Street has remained largely unfazed. The S&P 500, the broadest measure of the U.S. stock market, has chugged along to a near 14% gain year-to-date.
Buy the Dip?
Nearly a third of investors view these worker disputes as a potential buying opportunity for fundamentally-strong companies. After all, both companies and workers are incentivized to come to an agreement eventually.
Portfolios that rely mainly on indexes probably have even less to worry about.
Strikes against Hollywood and automakers may have dominated the news cycle, but these industries only represent a small portion of the stock market. Entertainment and media companies are roughly 2% of the S&P 500, while Ford (F) and GM (GM) make up less than 0.25% of the total index.
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