You know what always does well in down times? Vice. Since things are looking like they are only going to get worse for the foreseeable future, now might be the time to start buying stock in casinos, cigarette makers and distilleries, no?
When it comes to investing there is no proof that being a “goody two shoes” increases total return. In fact, if you try to inject your conscience into your investing, don’t be surprised if you miss out on some great returns. Just check out the Vice Fund (VICEX), which focuses its investments on companies dealing in alcohol, weapons, gambling and tobacco. ..So-called sin stocks tend to be recession-proof because no matter the economic environment, demand for things like booze, cigarettes and casinos typically holds steady. The following attractively priced sin stocks may not make you feel good about yourself–until you look over to the gain/loss column of your brokerage statement.
I guess I should take some of my money (what is left of it, that is) that is invested in renewable energy/green stocks and pour it into Altria, Seagrams, MGM Grand or Harrah’s!
Hard times won’t stop gamblers from betting, partygoers from drinking and smokers from puffing. In fact, economic turbulence might give them even more reason to indulge. That makes so-called sin stocks, or shares of alcohol, gaming and tobacco companies, a safe bet as the U.S. economy slows.
Nothing like investing in stuff that actually can make people sick and poor, right? Your 401K was wiped out? Why not take any pennies you can find under your mattress and go gamble it away! You could win big!
We all have our vices. Why do you think stocks like McDonald’s and Coca-Cola are always top defensive picks? When the economy turns sour, we need our vices more than ever. That’s why every investor needs to call his broker and buy shares of Altria Group, the company behind Marlboro cigarettes, Copenhagen chewing tobacco, many brands of fine wine, John Middleton cigars, and it even has a 28.6% voting stake in SABMiller, the owner of Miller brand beers.
Fun! Our society as a whole does not want to help take care of people who need it, but enjoys investing and making money off of cigarettes, alcoholics and gambling addicts – who then end up needing the very help we don’t want to provide in the first place. Back. Wards.
Regular readers might have noticed that I am starting to inject a lot more opinion into my posts as of late. I do hope you stick around and can appreciate my honesty & open-ness, but if you don’t and want to bail, it’s cool with me – I understand. After almost two years and over 1,000 posts, I wanted to shake things up a bit and share a little more of my personal opinion rather than just talking generically about saving and getting out of debt each and every day. That stuff will still have a home here, as I truly enjoy offering my advice & writing about the things that affect all of us, but I want to explore opinions a little more on the site.
I think this direction makes the site a little more interesting and can open up more discussion between readers, whether you agree with me or not. Also, I want you to know that I can appreciate any dissenting opinions and/or guest posts – as long as it’s clean and the argument is not insulting in nature, I welcome all of it.
But for now, I am taking the rest of the day off to attend an Obama rally and then have a nice dinner out for my anniversary. Enjoy the ride.