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Peak Everything Puts Shine on Equity Market’s Sturdiest Stocks

  • Strong balance sheet firms have outperformed for three months
  • Quality in control as economic growth, stimulus cools: Roland
Views Of Wall Street As Stocks Extend Losses
Photographer: John Taggart/Bloomberg

As Wall Street debates the timing for Federal Reserve stimulus cuts, investors have already shifted gears, targeting well-heeled companies that can weather a slower-growing economy.

S&P 500 firms with strong balance sheets have outperformed those with shakier finances for three straight months, the longest stretch since May 2020, according to data compiled by Goldman Sachs Group Inc. and Bloomberg. That’s a reversal from the start of 2021, when shares in companies with tattered finances thrived as the economy reopened, beating quality firms by the most on record.