Many investors alike are seeing record decreased in the overall performance of their portfolios. Despite expert advice from financial advisors and the sophisticated asset management techniques exercised by leading asset management firms, mutual funds and hedge funds your average investor is getting mauled by the Bear.
Yes, we are in a recession and trailing close behind or leading the way of the ailing economy is the proverbial Bear Market. Now, if you’re an ex-boy scout such as myself; or, you have been camping at least once or twice you know not leave food around lest you inadvertently lure these creatures into your campsite. Well, when it comes to the financial markets you can throw that malarkey out of the window!
One way to steer the Bear away from eating away at your precious portfolio is load up on some McDonald’s stock. That’s right, I said McDonalds—the fast food joint made famous by Ronald McDonald, Grimace, Hamburglar, The Fry Guys and Chicken McNuggets.
The Wall Street Journal reports that it expects the mega burger joint to increase its earnings per share by 21% when compared to last year. While most stocks have been hit by the receding economy, McDonalds has seen an increase in sales do to penurious behavior exercised by the common consumer as workers opt for an “extra value meal” over the $8 hero found in most gourmet delis. In addition, The Journal reports that increased sales overseas stemmed by a weakening dollar at more power the punch as the higher valued foreign currency is converted to U.S. currency.
These, along with other factors make the purchase of shares of McDonalds look quite appetizing to the Bullish investor.
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