If the economy slows down, what works best here? What stocks can you buy or at least buy, like PepsiCo (PEP), if you think the world is really slowing down and the Fed can not change the equation?
I have six of them.
The first is Estee Lauder Companies (EL). Here's a company run by one of the best executives I've ever met, Fabrizio Freda, deceased at Procter & Gamble (PG), who has taken over this prestigious brand and made it the most popular make-up company in the world. Because we're in the selfie generation, where everyone has to look good when they go outside, Estee Lauder sits in the cat seat. I think it's good that Freda has created a reverse mentor system where the young people in the office occasionally look after the vintage cars to make sure they're up to date and the best for the millennia. This is a company with a fantastic Chinese business that just got better during the trading tensions. Is there anyone else who can say that? I do not think so.
Second, Starbucks (SBUX). Did you see that stock has risen from $ 50 to $ 90 since Kevin replaced Johnson Howard Schultz? He did it by taking $ 7.1
Three: Today, several companies have raised the price tag for the Mexican Chipotle Grill (CMG), and I think they are right to do so. Here is the deal with Chipotle. Since becoming CEO in February 2018, Brian Niccol has provided the company with a system of expertise that had been lacking in previous management. Chipotle suffered like Starbucks under an incredibly spotty throughput. Niccol – late from Yum! Ironically, Brands (YUM) Taco Bell has almost solved the problems. Of course, his leadership coincided with the forgetfulness of the country. We've basically stopped thinking about food-borne illnesses and instead think of good-tasting burritos. It did not hurt that CFO Jack Hartung bought back a ton of stock in the bad old days. What a wise decision.
Next comes a strange decision: Nike (NKE). The analysts did not like Nike's last quarter. In fact, they hated it. And all that has happened is that the stock roared higher. How great is that? What does that mean? Quite simply, people think the next quarter will be better, and maybe that's enough. I think it's an amazing comeback that was not done with anything. But if a comeback is done with nothing, that usually means something is going on. I love her Chinese business. I love her European business and I love her American business. What else can I say? This one comes down, you buy it.
Here's one that annoys me every time I look at it: Procter & Gamble. Why? Because it never comes in. I have never had the opportunity to recommend it to you, so I want to post it here because it has become one of the most popular consumer goods companies of all. I think David Taylor has done a fantastic job to drive growth, and I believe he has a lasting partnership with Nelson Peltz, who really helped run the company. I see from chemical companies that raw costs have fallen. I see from the transport companies that the freight costs have dropped. Sharing, raw costs, improving business in China … what can you dislike? Watch this stock. It never comes in. If you do, I think you have to be there.
Finally, I like McDonald's (MCD). There are simple comparisons. It has an incredible impact on technology. Steve Easterbrook is a genius, just a genius. The first thing he did was win over the franchisees. That's the most important thing he can do. Then he worked on technology and costs – and took them down. Now it's all about comfort and the implementation of technology.
I know it would be great to rely on traditional growth. I like Facebook (FB) very much. I like Libra. But I feel like I'm alone when it comes to supporting their virtual currency, and it seems nobody approves of the idea that Facebook was somehow reformed. I do not care. I know, Instagram crushes it and the channel is great. The Libra overhang is certainly negative.
I like Amazon (AMZN), but do you know how much hot money is ready to destroy this thing even on a large number of Amazon Prime holidays? It is ridiculous. The expectations are far too high. I hated Dickens Great Expectations and I hate Great Expectation in stocks. This has far too high expectations. Also, I bought the Firestick last week. Had I waited a week, I could have saved a fortune.
Alphabet (togetL)? I thought we could have a winner, but then Peter Thiel, as rich as Croesus, started talking about China and betrayal today, and whether Google knows if his own company is being compromised by the Chinese Communist Party. Thiel can cause trouble. I think we did not hear the last indictment.
Apple (AAPL)? Damn, the stock is running again. Are you talking about the worst that can happen? When this stock is running, it's almost always bad news, and here I come straight out.
Sure, I like the Cloud Kings. But stocks like Workday (WDAY), Splunk (SPLK) and Salesforce (CRM) have gone so much. Likewise, the up-and-coming Web plays like Okta (OKTA), Zscaler (ZS) and Zendesk (ZEN). I think the risk was so big that I can not be tired anymore. I also need these to cool off. Tech is great; too terrible for the moment.
I wanted to list a few drug companies until the president had set his arms against them. You have all the food supplies you need if you own PepsiCo. So I return to the big six, Estee Lauder, McDonalds, Nike, Starbucks, Chipotle and Procter & Gamble.
No, I would not just go out and buy it now. Not with what I've just said about the earnings season.
But I say that these stocks are anointed with a lot of money. They do not go away. It will be the stocks of the second half, where the big money seems to be, no matter what. And now you have the list. Remember them. They are winners. I believe that they will apply for the rest of the year 2019.
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