Why are we looking at discretionary stocks? If the feed is indeed slowing inflation or will, the producers will have built in price increases, but consumers will more than likely keep paying the same price. Consumer discretionary stocks are companies that provide non-essential goods and services that consumers may purchase during good economic times or when they have extra disposable income. Only items that are commodities will start to come down (think eggs, beef, gas etc.). These need to be long term investments but looking at the list it is disposable income products. First to go in recession but should rebound as the economy expands again. One day it will. Here are some examples of consumer discretionary stocks:
- Amazon.com Inc. (AMZN): A leading e-commerce company that offers a wide range of products and services.
- The Walt Disney Company (DIS): A global media and entertainment conglomerate that produces movies, TV shows, and theme park attractions.
- Nike Inc. (NKE): A global sportswear and apparel company that designs and markets athletic footwear, apparel, and accessories.
- Starbucks Corporation (SBUX): A coffeehouse chain that operates globally and sells coffee, tea, and food items.
- Home Depot Inc. (HD): A home improvement retailer that sells construction materials, tools, and services to consumers and contractors.
- Tesla Inc. (TSLA): A leading electric vehicle manufacturer that also produces solar products and energy storage systems.
- Carnival Corporation & plc (CCL): A global cruise line operator that offers vacation packages and entertainment services.
- Hilton Worldwide Holdings Inc. (HLT): A global hospitality company that owns and operates hotels and resorts under various brands.
The list of consumer discretionary stocks provided offer a diverse range of companies and industries, from e-commerce and entertainment to home improvement and hospitality. While these stocks may be more vulnerable during a recession, they also have the potential to rebound as the economy expands again.
Investors should conduct their own research and analysis before investing in any stocks, and consider a range of factors, including company fundamentals, industry trends, and economic conditions, before making any investment decisions. As the author notes, these stocks should be viewed as long-term investments, and investors should be prepared for potential volatility in the short term.