Founded in 1993 through brothers Tom and David Gardner, The Motley Fool is helping millions of people gain monetary freedom through our website, podcasts, books, newspaper columns, radio screens, and premium investment services.
You may have heard of what is called the “October effect. ” The concept is that the inventory market has a tendency to fall during the month of October. Is this something investors want to worry about? Not really.
Certainly, many of the inventory market declines occurred in October.
There’s no way to know if the market position will retreat this month, but you can have a game plan in place should that happen. Here are 3 inventories to buy without any doubt if there is a liquidation in the position of the inventory market in October.
In your opinion, how many consumers have made the decision not to shop at Dollar General (NYSE: DG) due to the collapse of the most recent inventory market?And the previous one? My guess is zero. In fact, Dollar General’s business grew market place in 2020, and consumers stocked up due to expected COVID-19 lockdowns.
Dollar General’s one-word description is resilient. This company behaves well when the economy and stock market are booming. It also works well when it doesn’t.
Dollar General has noticed an expansion of same-store sales for 31 consecutive years. Despite difficult year-over-year comparisons to the burgeoning coronavirus-driven business in 2020, the shrink shop is still looking forward to its expansion streak this year.
The company is set to open 1,050 new outlets this year. It expands to more fitness products and services. Dollar General also had good fortune at first with its new pOpshelf retail outlets. Regardless of what the inventory market does, Dollar General will continue to grow.
I suspect Etsy (NASDAQ: ETSY) would be one of the many stocks that would fall, especially if there is a sell-off in the market this month. Sharp declines when the overall market is down go hand in hand with expansion stocks like Etsy trading at the top. multiples of future profits.
However, buying Etsy in the event of a recall would be a wise decision, in my opinion, as the company’s platform is the ideal choice for niche craft products that consumers simply can’t locate elsewhere, and its long-term expansion customers are huge.
This year, Etsy made a buy bet, obtaining fashion store Depop and Latin American e-commerce company Elo7. The US second-hand clothing market is expected to double in the next five years. be successful at $ 160 billion through 2025, compared to $ 50 billion in 2019.
The company estimates that its global addressable market exceeds $1. 7 trillion. No, Etsy will never capture this entire market. However, you don’t need to be a big winner in the long run.
The maximum likely reasons for an inventory market collapse this month are emerging considerations about COVID-19 or slowing economic growth. None of those points would have a significant effect on Vertex Pharmaceuticals (NASDAQ: VRTX), if anything.
Vertex has a monopoly on treating the underlying cause of cystic fibrosis (CF). The company’s 4 approved drugs are the only smart ones for cystic fibrosis patients. Doctors won’t avoid prescribing those treatments because stocks are falling.
Big biotech also has several tactics to generate strong expansion in the coming years. Vertex still has plenty of room to increase sales of its CF franchise by obtaining reimbursement agreements and expanding its approvals to succeed in more patients.
While Vertex has no non-FC applicants at the late verification stage, its portfolio can still produce big winners in a few years. The company and its partner, CRISPR Therapeutics, hope to register approval for a gene-editing cure by 2023. for rare blood diseases, beta-thalassemia and sickle cell anemia. Vertex also has promising Phase 2 control drugs for the treatment of pain and genetic kidney disease.
Again, there is a smart chance that the market won’t crash in October; however, buying Vertex Stock, such as buying inventory from Dollar General and Etsy, will be successful in the long run, no matter what the inventory market does.
Market knowledge driven through Xignite.