By Annie Stevenson, Managing Editor, American Investor Today Dear American Investor, Americans heard big news this week: We will have enough vaccine for every adult by the end of May.
That’s two months earlier than expected.
Meanwhile, much of the world is beginning to reopen with the vaccine rollout. And hope is buzzing in the air that life can return to normal in the not-too-distant future.
Many investors are wondering what all this means. Change is coming. What will happen to the companies that fought through this pandemic … to the winners who innovated and the losers who refused to evolve?
Well, our advice today is simple: Many of the companies who couldn’t adapt will continue to struggle. Meanwhile, the winners will continue to shine.
And if you’ve been following along with us over the past year, you know there have been plenty of winners: - Retail companies: We told you to keep an eye on retail companies that don’t depend on foot traffic. These are companies like Walmart, Target and Costco. And since the pandemic began, all three of these companies have grown their earnings by double digits — Target’s earnings are up 66% alone. These stores leveraged technology (like online ordering) and innovative strategies (like curbside pickup) to keep customers coming back in a socially distanced world. And they were rewarded with consumer loyalty that’s likely to continue.
- Streaming: We also told you that streaming entertainment would continue to grow. Netflix and Disney’s stock prices are up 77% and 102%, respectively, during the pandemic. For comparison, the two were only up around 5% each during the 12 months before. While movie theaters may never fully recover, we expect streaming to be a big business in a post-pandemic world.
- Digital payments: Finally, we’ve been tracking the rise of digital payments and their place in the new economy. Companies that embrace new forms of banking keep getting good news. Klarna, a “buy now pay later” company like Affirm, recently received a $1 billion round of funding — making it the highest-valued private fintech company in Europe.
We expect these types of winners to keep rising to the top. They know how to innovate — to persist and evolve. That’s a platform for any strong business.
That’s why we’re standing strong with the Vanguard Information Technology Fund (VGT). This exchange-traded fund (ETF) holds a basket of companies that are vital to ecommerce and the digital technologies that are the backbone of these trends. There are also plenty of companies that will get an additional boost as the world reopens. And that’s why we have another ETF opportunity for you today… He’s out to prove that the American stock market has been and continues to be the driver of wealth and financial freedom for untold millions of Americans. Will you help prove him right? Go here and see how … risk free. Get Ahead of This Retail Boom Certain retail companies are set to soar. We expect big-box retailers like Walmart and Costco to keep dominating as consumers pivot back to buying clothes for going out and stocking up on supplies for entertaining.
Those set to keep struggling — like malls and clothing-only retailers — will probably continue their downward trend. One of the largest mall operators in America, Simon Property Group, is down around 44% in the past five years. And that’s after a sharp spike in the past few months — it was down over 30% in 2020 alone.
That’s why we recommend the Vanguard Consumer Staples Fund (NYSE: VDC) today.
This ETF holds the likes of Walmart and Costco — but also companies like Estee Lauder and alcoholic beverage maker Constellation Brands. These are all companies that will benefit as we start spending on luxuries again. And as more consumer stimulus plans make their way through Capitol Hill, we expect these brands to do even better.
We hope you take the opportunity to build your wealth as we keep bringing you our favorite ways to profit in American Investor Today. Elsewhere in the markets, the team has been covering new innovations that you need to know about… This Week’s Stories We begin this week with one of our favorite traders showing readers a new way to take advantage of his favorite strategy: Next week, we are excited to show you one of the biggest new mega trends that we’ve been following. We’ve been researching this for months, and we’re finally ready to show you how you can take advantage. Stay tuned. Annie Stevenson Managing Editor, American Investor Today P.S. We’ve been telling you about Chad Shoop’s new presentation on the “Ultimate Trading Strategy” in American Investor Today. If you haven’t had a chance to watch it yet, you’re missing out. He will show you how you could make double- or triple-digit gains with trades that take just 30 to 60 days, on average. Watch it here. Privacy Policy The American Investor Today, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of American Investor Today, please add info@mb.banyanhill.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: http://banyanhill.com/contact-us Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Banyan Hill Publishing expressly forbids its writers from having a financial interest in their own securities or commodities recommendations to readers. Such recommendations may be traded, however, by other editors, Banyan Hill Publishing, its affiliated entities, employees, and agents, but only after waiting 24 hours after an internet broadcast or 72 hours after a publication only circulated through the mail. (c) 2021 Banyan Hill Publishing. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Banyan Hill Publishing. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 866-584-4096) Remove your email from this list: Click here to Unsubscribe |
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