Lower interest rates mean more spending. And with more spending comes more profits for retail companies.
Now, most of traditional retail had a rough decade in the 2010s… but not this company.
In the 2010s, this stock rose from just $59 all the way to $295 to end 2019. And in the past 2 years, it has nearly doubled…
That’s because this retailer has figured out how to keep a relentless loyal customer base and manages to always be on the right side of public opinion, recently raising its minimum wage to $17/hour.
And if you’re worried about this wage hike hurting this company’s profitability, I have good news for you.
In their most recently quarterly earnings, revenue is up 17.41% year-over-year…
Net income is up 20.23%…
And Earnings Per Share is up 20.13%…
This is a very strong stock to own. If rates continue to go lower, you will want it in your portfolio before they drop.
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[finviz ticker=COST]
Costco Wholesale (COST) is an American multinational big-box retail chain store that offers everything from organic foods, televisions, and furniture.
It’s also one of the biggest players in the consumer staples sector, coming in as the fifth-largest retailer in the world.
And given its operations, the company typically benefits from lower interest rates. This is because lower interest rates often equate to lower mortgages and credit card debt – freeing up consumers’ expenses and increasing their overall spending power.
As this happens, consumers will spend more on items like fresh foods and alcohol. They’ll also be more inclined to buy items like video game consoles, entertainment systems, and other consumer electronics.
In turn, many will turn to companies like Costco, which offer a variety of items all in one place – both in person and online. This makes it an extremely convenient option for people as well.
Woman gets revenge after 401(k) falls nearly 50%
Chaikin Analytics
In 2008, she lost around 50% of her 401(k).
She was furious, because she’d entrusted that money — the bulk of my life savings working as a director at L’Oréal — to a money manager.
Her husband, Marc, saw how upset she was, and created a new investment system to help me make it all back.
Since then, she’s made 3 times my money overall.
In fact, in about a year, she made 7 times her money on one stock alone, just by logging into the website her husband created to help everyday folks like her get “revenge” against Wall Street. Claim free access to this site right here.
