Interesting times. Let me posit this fact now. You have no place else to shop other than your grocery store or pharmacy. This goes without saying, but I’d surmise that a healthy portion of the $500b spent at the mall and restaurants will now be used in other places. This means KR and AMZN is your new Macy’s and Nordstrom. This means HAIN, CPB, and SJM are your new designer labels. Get it?
Because of zero percent interest rates, stocks that pay dividends deserve higher multiples. This is classic multiple expansion phase because of yield. Add on top of that the MONUMENTAL shift in consumer behavior and FORCED monopolies and you have a time and place where RECORD HIGH multiples can be affixed to consumer staples.
Yes, names like CLX, PG, CL, K, SJM and even FIZZ deserve high growth multiples. You will soon learn how incredibly under prices these stocks are and you should, as I will be soon, take advantage of rally days to buy them. They will dip on rally days — because ERRRRR “V-SHAPED RECOVERY” idiots piling in and out. But rest assured, these stocks will appreciate over the next 6 months.
Other than that, I am playing this bounce via the most degenerate way I know how.
NOTE: Trump just said he supports govt ownership in equities. Ok then.
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