The Capitalist Investor - Episode 69

The latest $1.9 trillion stimulus package—that included $1,400 per person—started hitting bank accounts recently. A recent report from Deutsche Bank looking at people between 32–54 years old, found they were planning to spend 37% of their checks on stocks. Half of those ages 25–34 planned to invest 50% of their stimulus money on stocks. With an upswing in spending in the stock market, which companies could benefit the most? Which do we think could be good picks? Listen to this episode to find out!

Outline of This Episode

  • [2:00] The latest stimulus package passed
  • [5:32] Two different ways to look at this
  • [12:10] Expedia
  • [13:43] Bank of America
  • [14:53] Anheuser-Busch InBev
  • [15:52] Coca-Cola
  • [17:04] Southwest + Alaska Airlines
  • [18:34] Disney
  • [20:38] MGM & Caesars
  • [22:02] Wyndham Hotels
  • [23:38] VICI properties

The plus side of the stimulus checks

Some people see the stimulus money as a waste of government spending. Given that a good chunk of people are investing the money, it seems that many don’t need it.

But there’s another way to look at this money: a nice gift to younger generations that we never had. It is giving them an opportunity to experience investing in the stock market and getting some wins. This is training two young generations the value of paying yourself first and taking an interest in the stock market.

So what stocks did this Kiplinger article think might benefit from this influx of stimulus money? Which ones do we think are worth mentioning?

Expedia + Southwest + Alaska Airlines

As vaccines get out, travel is #1 on just about everyone’s list. Expedia allows you to book flights, hotel rooms, and rental cars and shops around for the best deal. It’ll help you craft travel packages that work for you. Expedia is a good name to keep in mind.

Southwest and Alaska Airlines are another great travel play. They are more domestically and regionally focused airlines that are mostly consumer travel. Delta, American, United, etc. are more focused on business travel—which may continue to die down.

Disney

Disney’s theme parks in Orlando have been sold out. It sounds like they’re at the point where they’re taking reservations (Disney didn’t want more than 50% of the maximum capacity in the park). It’s now up close to 50% from pre-COVID levels. But Disney will likely see a bump from the parks continuing to open. It makes sense that Disney is on this list.

Wyndham Hotels

Marriott is my preferred rewards program with my hotel of choice being Westin. Traveling 10+ nights a month you want to feel comfortable, right? The Westin has identical fitness centers, so I was able to continue my routine. I would expect that Wyndham is probably lagging Marriott’s performance. Marriott is more of a high-end hotel. Wyndham brands include La Quinta, Ramada, Super 8, Travelodge, etc. However, you’ll likely see more business travelers in these more economic hotels.

MGM & Caesars + VICI Properties

We both love going to Vegas. Penn National has allure because of the shift toward online gambling. Penn National Gaming owns Tropicana on the strip. But if it came down to MGM, Caesars Palace, or Tropicana—where would you rather stay? Not Tropicana.

VICI Propertiesjust bought the Venetian from Las Vegas Sands (LVS). LVS sold the rest of their strip properties and have more of a Macaw play. LVS is for the growing middle class, so we’ve pivoted away from VICI.

Who else falls on the list? Who didn’t make the cut? Listen to the whole episode to hear our take!

Resources & People Mentioned

Connect with Derek Gabrielsen

Connect With Mark Tepper

Send your questions and comments to us at info@SWPConnect.com

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Keep Listening to The Capitalist Investor:
Episode 12:
Fiscal Stimulus Bazooka, Ep #12
Episode 28:
First Investing Experience: Baseball Cards, Ep #28
Episode 44:
Presidential Debates and the Possibility of a Contested Election, Ep #44
Episode 60:
GameStop, Reddit, and the Power of the Retail Investor, Ep #60
Episode 13:
Fireside Chat with a Firefighter, Ep #13
Episode 29:
Is a Vacation Home an Investment? Ep #29
Episode 45:
Spooky Stocks: Proceed with Caution, Ep #45
Episode 61:
Special Episode: The Super Bowl Indicator, Ep #61