ClaaP Meets CRaP

We’d like to think that great television content is going to be attractive regardless of how its distributed. This makes Discovery Inc. (DISCA) and the Walt Disney Co. (DIS) look attractive to us. The monopolistic tech companies are concentrated in expensive coastal cities and have slowed the homebuilding process around the country. U.S. history would say a migration to less expensive regions of the country by folks seeking affordable homes would be good for a homebuilder like NVR (NVR) or those renovating houses at Home Depot (HD). The emergence of the 86-million-plus millennial group could make financial service companies like American Express (AXP), JPMorgan (JPM) and Bank of America (BAC) look attractive.

If and when the leadership of the U.S. stock market moves away from the e-commerce favorites, you can then own very meritorious companies when they aren’t CIaaP stocks, because they won’t be connected to the downside of the companies selling CRaP!

1Source: The Wall Street Journal
2FAANG stocks include Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX) and Google parent Alphabet (GOOGL).
3Source: UBS annual consumer survey, The Wall Street Journal

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Disclaimer: The information contained in this missive represents SCM’s opinions, and should not be construed as personalized or individualized investment advice. Past performance is no ...

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