What I Am Buying Today.

[EricL]

(05-18-2022, 09:23 AM)ConnerM Wrote:

(05-18-2022, 09:15 AM)EricL Wrote: Target just missed earnings estimates by 30% ($2.19 vs. $3.06) and said they are struggling with rising input and inflation costs.

Do you see either of those situations improving during the next quarter? With gas prices headed to $5 or $6 and Shanghai just coming out of full lock-down that further disrupted supply chains?

Anything consumer-related is going to struggle over the next several quarters. This isn't a one-off event.

 
Yes Eric we get all those numbers, gas prices ect. Blah, Blah Blah 

But all these companies have come down significantly.

DG will do well in a recession as well TSCO and HD and LOW.  People will always put money into their houses and discount retailers do well. 

Oil has had a huge run. At some point it will come crashing down. Happens all the time. No one should be buying at these highs. It's all momentum. Look what buying at the highs did for tech and consumer investors lol 

But you have to take advantages of the good names that have been beaten down.

I'm not saying TGT, HD, LOW, and TSCO aren't good names to own. I still own them all and have zero intentions of selling any of them. I'm just saying the numbers from WMT and TGT should give one pause about the earnings prospects for any of them in the current economy. 

This isn't a one-off bad quarter, there will be more bad ones coming. We are at the beginning of the recession, not the end.