Payne's Perspective: November 23, 2020: Family Matters
It's been a remarkable earnings season. It’s not only because of the big number of earnings beat and the plurality of positive guidance over negative guidance, but it’s also because most companies are growing earnings, despite the challenges of Covid-19 and related shutdowns.
The carnage has largely come in three areas all intensely impacted by coronavirus obstacles. The intriguing part of this story is these stocks have been among the hottest in the market. The Street calls it the reopening trade. I think it’s more about a return to normalcy, and that’s how investors need to look at these stocks.
Until the wave of positive vaccine news arrives, I feel these names should be trades and not investments. There is no doubt in my mind any investor that buys most of the market players in the airlines, hotel, restaurant, leisure, and oil & gas industries will make money long term.
But would it be worth the risk, and would those gains outpace the overall market?
The trades have been swift, violent, and extremely profitable.
To read the full report, contact your account representative or email Research@wstreet.com
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