Talking Stocks 2.0

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Originally Posted by Fleetlord

It looks like (in the minds of some of the public and the market), the whole Covid-19 thingy is over.

‘Stay at home” stocks are old news and getting cold. The money is going after values in travel and other stocks held back by the lockdown.

I think it is transient. When the second quarter earnings come out for these consumer stocks, reality will set in. Q1 only had one month moderately impacted by COVID, whereas April is a total write off, and May/June are not normal months. Meanwhile the “stay at home” stocks and tech docs that are continuing to bring in earnings will continue to climb. We are a tech based society, and the idea of “stay at home” is a bit of a misnomer - it’s really about societal growth and convenience, that just happened to be brought to the spotlight by staying at home during covid (better internet and gadgets, health, global connectivity, online shopping, alternative food and energy sources, transportation, remote work, and the comforts of your own home etc). So these should continue to perform in my opinion. That’s not to say that people will never travel or engage in leisure, that’s crazy - just that the leisure/travel sector is not what will drive the future economy forward, and so for me are not ideal long term investments.