Education Stocks Show Strength (APEI, APOL, DV)
By Swing Trader
February 23, 2010 1:29 PM
February 23, 2010 1:29 PM
On a day when the S&P 500 (NYSE: SPY) is down more than 1 percent in the wake of a poor consumer confidence reading, the education industry is showing relative strength.
Shares of American Public Education (NASDAQ: APEI), Apollo Group (NASDAQ: APOL), and DeVry (NYSE: DV) are all up on the day.
Education stocks can be viewed as counter-cyclical, in that they move counter to the general economic trend. When economic growth is muted or unemployment is high (such as it is now) displaced workers often go back to school to learn new skills and improve their employment prospects.
When markets get volatile or start heading south, including education stocks in your portolio may serve as a good hedge against further declines in the markets.
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