The Becky portfolio

Has anyone else come across this on YouTube or Wall Street Bets?

It’s a portfolio of companies whose products young women in the US would buy:

  1. Apple
  2. Disney
  3. Etsy
  4. Lululemon
  5. Planet Fitness
  6. Starbucks
  7. Target
  8. Ulta Beauty

This portfolio has overperformed the S&P 500

Good video about the topic

Its a solid strategy but one based on high disposable incomes, I’m not sure that will stand the test of time.

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Thanks for the feedback. Do you mean that this portfolio might not be recession proof?

That’s what he was suggesting yep!

I need to believe companies like Starbucks and Apple have a gameplay for a recession! But I do see his point. Basically, it might be a portfolio that got turbo boosted in a bull market, which might not happen when ice inevitably get into proper recession.

I believe they have a plan. Whether that plan will be effective is another matter. I’m holding Apple at the moment and intending to just tough it out. My feeling is they’ll do badly in recession but better on the other side ans that makes them worth having

On a long enough timeline, if you believe economy will do better again, these stocks are probably worth a look. I agree there is a recession danger, but there is always risk when investing in stocks.

Could add Peleton to the mix

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Yes & no actually. Putting aside the fact that I absolutely hate the term ‘recession proof’ for a moment. I simply mean that a lot of these stocks (not all) have benefited immensely from a period of economic fairytale. There have been very few periods in time where we have had lower inflation, low interest rates & high employment rates - that is not likely to persist over the long term & most economists would agree with that. This has essentially created the ‘strong consumer’ that many governments around the world talk about - my general feelings are that this particular group of stocks have benefited immensely from this.

Assuming this doesn’t continue, I think some of these stocks are likely to be hard hit as wage growth slows and possibly even declines in real terms (accounting for inflation).

All of that being said I still think the strategy has merit. Targeting disposable income & secular growth trends are typically strong strategies and from an initial glance most of these companies (Target & Etsy aside) have large margins that they can play with to retain-gain market share.

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