It Ain’t Over Until It’s Over

 

 

Do you smell that?

 

It smells like – *sniff…

 

Volatility.

 

The trade wars are underway, and while we may not all be feeling the effects of these posturing battles yet – Wall Street is surely beginning to feel it – as the uncertainty in the markets is showing itself in increased volatility.

 

Sure, the markets are soaring – some days – but for others, there’s no rhyme or reason to the swift price spikes and/or drops.

 

And with words like “monopoly” and “break up” being thrown around in the tech industry – people are finding very little peace or stability anywhere. Well…

 

Anywhere they’re looking.

 

There is a HOT sector in Wall Street right now and it could help us pad our nest egg a little if we know when and where to strike…

 

And I do.

 

However, before we get moving deeper into this subject, realize there’s a caveat…

 

If any of what you’re about to hear sounds good – do yourself a favor and don’t sleep on this information too long – do your due diligence, but do it fast, because it may not be long till this sector cools off again.

 

One of the markers of an economic downturn tends to be when fast food stocks such as McDonalds (MCD) or Chipotle (CMG) do really well.

 

Why?

 

The theory is, economic downturns mean people don’t eat out as much. When times are good – people tend to eat at casual dining establishments like Outback Steakhouse (BLMN) or Chili’s (EAT)…

 

But when times are bad – people tend to stretch their dollar as much as they can – and fast food gives them the ability to eat out, yet save a little money in the process.

 

Except that’s not the case now…

 

What’s happening now has nothing to do with poor economic conditions – it’s the volatility that is giving fast food companies a boost and why, if you’re going to strike – consider striking soon, as it won’t take long for the winds of volatility to tilt the other way.

 

This sentiment was echoed by a source from one of the top investment and management firms out there – Piper Jaffray.

 

This unnamed source agreed that stocks like McDonald’s, Chipotle and Starbucks (SBUX) have been outperforming the market – and this should come as no surprise as this sector is the “go to” defensive maneuver for the experienced trader.

 

The source was quoted as saying, “This low end becomes something that you hide out in because you know people can afford this stuff. I think if you look at valuations, Chipotle is a stock that has been loved, and its valuation reflects that. It’s [trading at] 75 times trailing earnings. But the expectations continue to be positive. So maybe it can continue to grow into that.

 

And there are a few of these stocks that you might want to consider jumping into… and some that you may want to stay out of.

 

Of the companies we mentioned above, Chipotle may be your best bet…

 

Chipotle has been one of Wall Street’s best performers over the last year or so, now that fast food stocks (believe it or not, Starbucks falls under that umbrella) are back in the limelight.

 

And their chart seems to back this notion up as the stock has been hovering around its 40-week moving average – and some analysts are hoping we can soon see it trading back above $500.

 

Another fast food staple to consider – Coca-Cola Bottling Co. (COKE)…

 

Coke is a perennial moneymaker and yet affordable enough that the Everyday Joe can get in at a reasonable price.

 

Now…

 

What might you want to stay away from?

 

Starbucks.

 

Why?

 

While the stock has been performing well, especially since October, the fact of the mater is, the stock has become over-bought so things may soon be cooling down for the coffee company.

 

Some other companies you could look at would be Jack In The Box (JACK), Sonic (SONC), and Dominos Pizza (DPZ)…

 

These stocks are performing as well – and could be a quick moneymaker for the fast gunslinger.

 

This may be a bit of a “go with your gut” situation…

 

Unlike GorillaTrades’ recommendations – this isn’t just about data. The data is there for these companies to all be potential winners – but it will ultimately come down to a little bit of luck and magic when it comes to picking one of these companies for your portfolio.

 

Again, this isn’t something you have to worry about with GorillaTrades

 

Once a stock hits all of the strict technical requirements of the trading matrix – we send out the alert. If the data is there – we don’t wait.

 

It’s one of the reasons GorillaTrades has becomesuch a successful service – our subscribers like not having to think about the little details. We do all of that for them.

 

It’s what makes us… us.

 

We’d love for you to join us too, but understand if that’s not your thing.

 

Either way, do yourself a favor and check out some of these stocks – they may be able to make you a little bit of cash… fast.

 

When you’re green, your growing. When you’re ripe, you rot.” – Ray Kroc