Forget the FAANGs — Here's What You Need in Your Portfolio Now
Binge-watching Netflix on the couch? That’s so 2021.
2022 is all about going out and having some fun.
Consumers are having plenty of it already…
And today, I’ll show you how to profit from it.
For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.
Forget the FAANGs — Here’s What You Need in Your Portfolio Now
Welcome to Moneyball Economics… “The place to come for your investment fun!”
OK, my rhyming skills aren’t so great. But hey, I think it’s fun to try…
And fun is the theme of today’s video.
You see, consumers are having more fun nowadays…
And today, I want to show you how to profit from it.
Go Out and Play!
To set the stage here, let me explain the shift that’s happening.
In the height of the pandemic, everything from healthcare to entertainment went remote.
But today, people aren’t staying inside. They’re heading out to spend, spend, spend.
And this shift is creating winners and losers…
The losers are the companies that thrived during the work-from-home era.
For example, Teladoc (NYSE: TDOC), the telemedicine business, and Netflix (Nasdaq: NFLX), the streaming platform, grew tremendously when we were sheltered in place.
But now, their futures look anything but promising. Here’s Teladoc’s stock:
It’s down 81% in the past year.
As for Netflix…
It's down 75% in just four months! Netflix lost 200,000 subscribers last quarter, and another 2.2 million are expected to disappear next quarter.
People aren’t sitting around “Netflix and chilling” anymore — they’re going out.
And a few key sectors are booming as a result…
First, there’s travel. Recently, United Airlines (Nasdaq: UAL) CEO Scott Kirby said his company is experiencing unprecedented growth.
Said Kirby, “I’ve never seen in my career, and I’ve been in this industry a long time, such a ‘hockey stick’ increase in demand.”
Last quarter, United’s travel activity reached about 50% of its pre-Covid level...
But in the most recent quarter, that number soared to 87%!
Looking the Part
Next, there’s the health and beauty sector.
Consider Ulta Beauty (Nasdaq: ULTA), a cosmetics retailer. Revenues are up 21%. And earnings are up 79%. In fact, for the year, company earnings are up almost 500%!
Makes sense. After all, when people go out, they want to look good. And after two years of enduring cabin fever, they’re ready to hit the town…
Which brings us to the third booming sector.
Get Your Tickets Here
I’m referring to the market for experiences. You see, as people re-enter the real world, they’re not spending money on stuff. They’re spending it on things to see and do.
That’s why Live Nation Entertainment (NYSE: LYV), which sells tickets to concerts and events, is dominating the market right now.
Currently, attendance at events is 25% higher than it was compared to 2019!
Forget About “FAANG”
Are you getting the picture here?
People are going out. They’re forgetting about inflation concerns and they’re shrugging off anything holding them back from having a good time.
That’s why I’m telling you to forget the FAANG stocks like Netflix, Google, and Amazon. Those are so 2021.
2022 is all about having fun.
And if you’re a “Pro” subscriber, I’ll share my pick for profiting from all this jubilee!
In the meantime, go have some fun. Zatlin out.
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