Avoid These 2 Stocks In July

COVID-19 has reared its ugly head once again.

The number of cases here in the United States is spiking, and some states are seeing rapid growth in the number of new positive coronavirus tests.

Several states, including Arizona, Texas, and Florida, are closing bars down once again. Arizona has also closed gyms, movie theaters, and water parks for at least 30 days to attempt to slow the spread of the virus.

Beaches in some counties in Florida were closed on the Fourth of July. So were beaches across the country in Los Angeles. Fireworks displays were canceled all across the nation to try and halt the spread of coronavirus.

We may want to be done with the virus, but it is increasingly evident that it is not done with us.

As is the case with everything in the United States today, there is some disagreement about why the virus spread has accelerated. Some say it's simply a function of more tests. Others blame it on the protests in most American cities a few weeks ago.

The opening of bars and churches also gets blamed for the spread. The lack of people wearing facemasks and practicing social distancing also have a place on the blame spectrum.

In truth, it's probably a combination of all of these factors.

Whatever the cause, the virus is spreading again across a considerable part of the United States.

Some experts think we could get to a disastrous 100,000 cases a day before this peak.

We don't know how this plays out, but we do know there are some stocks you should probably avoid until we see signs of a reversal.

The lows in March and April this year served as an incredible buying opportunity since stocks have rallied 40% higher since then. But don't let the low share prices of these firms fool you.

Avoid these stocks…

Avoid Restaurant Stocks Like This One

Restaurants are going to take another hit I'm afraid. When the cost of dining out includes being exposed to a virus that has no cure, and if spread to older relatives could cause death, people are going to think twice before heading out for an expensive dinner.

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Comments

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Adam Reynolds 3 months ago Member's comment

Good read.

Andrew Armstrong 3 months ago Member's comment

They’re making a profit during all of this while most companies are losing money

Angry Old Lady 3 months ago Member's comment

Who is making a profit? Amazon maybe, not so sure about B&M stores.

Andrew Armstrong 3 months ago Member's comment

#Amazon doesn’t even make that much of a profit, look at they’re annual/quarterly revenues. They sell about 76 billion they net about 2-3 billion of that. SPG is making a net profit however through the pandemic, that’s why they are still giving dividends out.

Stock Tigress 3 months ago Member's comment

But isn't now the time to buy? Once once the "clouds have passed," prices will rebound and it will be too late? $SPG $RUTH

Old Time Investor 3 months ago Member's comment

Yes, timing is key.

Dick Kaplan 3 months ago Member's comment

Of course you want to buy low and sell sell, but the author is saying that the stock will continue to go down and possibly even go bankrupt.

Craig Newman 3 months ago Member's comment

To say these malls have no future or that there is no “normal life” after the virus is just wrong. People don’t just go to malls for the products, but for the experience and social interact. The tangible part of mall shopping is also not to be neglected.

This is being held down atm, and waiting too long can just be too late. And who knows when the time is to jump in?

So my opinion is, just jump in at this discounted price and average down if it falls more. That way you wont miss the rebound.

Also it is impossible to go below 60 again in my opinion, unless there is another lockdown, which I just don't see happening. Nobody can afford another lockdown.

It was in the 50’s during lockdown, now all is open so 60’s is the new bottom.

Dick Kaplan 3 months ago Member's comment

Personally, I know of many restaurants and stores that have permanently shuttered due to COVID-19. And even in areas which aren't being locked down, many individuals will be too afraid to patron. So while malls will of course still be around after COVID-19, not all will weather the storm.