Consumer lead recessions are extremely tough on the market, and the current crisis is no exception. In 2008 alone the S&P 500 has lost 38%, so where can investors turn? As consumers spend less one type of retail still thrives, dollar stores.
Dollar stores have been around forever, and in fact dollar stores have become a multi-billion dollar industry. When times get tough these deep discounted retailers have more business than they know what to do with.
Three dollar store chains are publicly traded and over the last few months have been under heavy accumulation by institutions. Every investor should take a close look at Dollar Tree (DLTR), Ninety Nine Cent Stores (NDN), and Family Dollar Stores (FDO).
Both Daily and Weekly Stock Charts are below:
- Dollar Tree (DLTR) - Daily
- Dollar Tree (DLTR) - Weekly
- 99 Cent Stores (NDN) - Daily
- 99 Cent Stores (NDN) - Weekly
- Family Dollar Stores (FDO) - Daily
- Family Dollar Stores (FDO) - Weekly
Numbered Charts Below, Click To View:
Dollar store stocks are not going to be the high fliers of the century, but they are a great alternative to currently volatile and otherwise riskier investments.
Earnings are on the rise for all three of these companies and as long as the economy continues to weaken all three will continue to be on institutional buy lists. Recession proof retail is officially in trend.
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