Hank Paulson's Favorite Dow Stock Is Up

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The Dow Jones Industrial Average sunk 500 points lower today, and everyone is blaming the financial stocks. AIG shares plunged more than 60 percent. The bank everyone loves to hate, Washington Mutual, saw its shares decline by 27 percent. Wachovia shares fell 25 percent. Bank of America fell 21 percent, stumbling under the weight of its acquisition of Merrill Lynch. Citigroup fell 15 precent. JP Morgan Chase fell by 11%.
But don't beat up on the financials too much. Merrill Lynch rose hugely on the news that it is being acquired, closing up a total of one cent today. Well, okay. Maybe we should beat up on them a bit. Goldman Sachs dropped 12 percent. Morgan Stanley, the other bank still standing, was standing 13.5 percent less tall.
Every stock on the Dow was down, save one: Coca-Cola. We don't usually like to assert causation to stock movements as the market closes but this time we think we know why: Coke is up on the Hank Paulson trade. Everyone knows that the machine that is Hank the Tank runs on Diet Coke, and after two straight weekends of financial meltdown meetings sales must be through the roof. If you are thinking about getting back in financials because if this isn't a bottom it sure feels rough like one, well you might want to pick up some Coke as a Paulson hedge on the trade.

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