The Great Reopening
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The Great Reopening Story
Breaking Down Cyclicals
March Madness 🏀 Cryptocurrency Style
Quality Weekly Articles 📰
Tweets from the Community
March Partnership with Public.com - Everyone’s an Investor
The Great Reopening
2020 impacted every industry and company on Earth. Several industries skyrocketed while others were shaken to their core or found themselves extinct. However, the industries that did survive; pivoted, restructured, and cut costs wherever possible. Executive teams scrambled to eliminate redundancies in an effort to keep their companies afloat.
Now, entering the second quarter of 2021, we turn our attention to the moment we’ve all been waiting for; The Great Reopening. As an investor, it seems every industry reopening will perform well this year, right? Well, there are numerous things to consider in the reopening trade:
How exposed was the industry during last year’s shutdown?
How much debt did a company accrue if they were partially or fully shut down?
What is the recovery time for that industry?
After being closed down, how did the specific company pivot to cut costs and survive?
How much overhead does the company have in preparation for a quick reopening recovery?
How much has the company’s stock run up or down? Is it oversold or overbought?
It’s equally important to know how we have and have not changed as consumers as well. For instance, business travel and in-person business meetings may not return for years with teleconferencing for office workers being preferred. A significant decrease in business travel could be a lagging effect on the airline industry.
Last year shined a spotlight on many CEOs of publicly traded companies. The great ones were able to meet the moment, find opportunity and look to the future for their company. When investing in the stock of a company, you want to consider the CEO and management team.
Finally, just because a company’s stock is “cheap”, does not necessarily mean it’s a good investment. This is where stock picking becomes key. After you dial in on a sector you expect to perform well, it’s time to take a closer look at the leading companies in that sector and tie it all together.
Cyclical vs. Non-Cyclical stocks
Cyclical stocks are businesses which perform well during economic expansion when consumer confidence is high. Norwegian Cruise Line is an example of a cyclical stock due to economic spending on vacations and leisure. However, when consumer confidence is low due to economic contraction, cyclical stocks tend to perform poorly. On the flip side, non-cyclical stocks are businesses that perform well regardless of what the economy is doing. Costco is an example of a non-cyclical stock due to the essential items it sells to consumers.
The Difference Between Cyclical and Non-Cyclical Stocks - Investopedia
March Madness Crypto
We started with 68 and we’ve reached the sweet 16 of the March Madness Crypto tournament. Join us this week on twitter to vote and find out which cryptocurrencies advance as we continue the quest to determine who the community believes is the top cryptocurrency to invest early in 2021!
Quality Weekly Articles 📰
Financial Articles We Enjoyed
How People Lose All Of Their Money - Seeking Alpha
Bank of America Sees DeFi Potentially More Disruptive Than Bitcoin - Coindesk
Tweets from the Community
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