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This Sector is Still Lighting it Up | The markets are undergoing a major correction right now, which is why we think it’s a great time to be considering moving in. Yes, hard to believe, but with the doom and gloom of the housing crunch, credit issues, oil going crazy, the dollar declining, and woe’s about a coming recession, the gloomy picture is now approaching fear, which of course means buy. | |
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| This Sector is Still Lighting it Up |
| Tuesday, 19 February 2008 | ||||||
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Of the three best recession-resistant sectors, only tobacco is holding up its end of the bargain. Household goods fell seven percent from the second week of October through the end of January. The alcoholic beverage group did much worse. Distillers and vintners dropped 17 percent. Tobacco, on the other hand, rose more than five percent, much better than the S&P’s 15-percent drop. Over the past three months, the best performing tobacco stocks have been Alliance One International (AOI) and Universal (UVV), with UST (UST) and Reynolds American (RAI) barely higher. The company with the strongest global footprint and the one best positioned to take advantage of global growth didn’t make the top four. It’s Altria (MO), which makes Marlboro among other brands. It’s splitting into a domestic company and an international one. The international part of the company has already made inroads into China and is poised for strong growth. Once the split is completed, it won’t have U.S. litigation to worry about either. Give tobacco a chance if you haven’t already. There’s no stronger sector during a recession, and there are some interesting companies to choose from. P.P.S. To let me know what you thought of today's article, send an e-mail to: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
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