The media has featured some ‘go woke, go broke’ memes. This phenomenon refers to the weakness in the stocks of some companies that have introduced products or programs that are out of line with the tastes or beliefs of major sections of the population over the last year.
The graph below is the equally-weighted price index of seven stocks of companies that are considered ‘woke.’ Note that the index fell by a much greater percentage than the S&P in the 2023 correction. The index has, however, recovered at twice the rate of the S&P from the October low. Apparently, the ‘woke scare’ wore off quickly. Emotion subsided and rational fundamental analysis came to the rescue. Investors likely realized that the fundamental operations of these companies remained intact and took advantage of the low prices to add to portfolios. Investors may want to keep this in mind for the next stock that takes a ‘woke’ dive.