Vice Stocks

What do people do regardless if the market is up or down? They drink alcohol, smoke tobacco, and gamble. They are legal and big business (worldwide). Your personal views are not going to change the world. I do not drink or smoke, and I rarely gamble…but that does not mean I will stay away from a good investment. This market cycle is going to keep to its downhill velocity…so if you’re in its way, you will feel the pain. One way to join the bandwagon is to buy stocks or mutual funds that focus on just alcohol, tobacco, and gambling.

This sector has seen a 21.7% five year trailing returns. Drinking and smoking will kill you, and gambling will make you a poor man. But investing in this sector may make you rich (long term). Take gambling for instance. Las Vegas pulled in $7 billion last year…and there is no sign that it will slow down (in this century). Beer consumption is up (globally), and there is no sign that any country (domestic or foreign) is going to stop drinking beer anytime soon. And the tobacco industry makes a pack of cigarettes for just 25 cents, and China is buying cigarettes like its going out of style. People smoke cigarettes in the shower…that’s how addictive cigarettes are. So you will not see a slow down in tobacco sector (globally anytime in the next century). These sectors may go down for the short term…but they will not stay down for any length of time. As with any security…buy low and sell high. Pretty simple. So stick to simplicity.

Call your stock broker or financial planner and investigate stocks or a mutual fund that focuses on these three vices…and you’re bear market will seem like a bull market!

Sincerely,

John Bagwell

The Truth About Financial Products.com

www.thetruthaboutfinancialproducts.com