As we embark on a season of celebrations, it’s easy to see why so-called sin stocks—alcohol, tobacco, gambling, even firearms—can stay up in down times.
Words like “habits” or “indulgences” hardly do justice to Americans’ steady—in some cases addictive—consumption of these products.
That gives companies like Anheuser-Busch or Altria, which owns Phillip Morris and Marlboro brands as well as Columbia Crest wines, a certain buoyancy.
Does this mean you should run out and buy shares of casino operator MGM Resorts International?
It’s an issue of values—as well as your asset allocation.
It’s important to know what sectors in your portfolio are providing a hedge against volatility, but you might not want to put money into products you consider harmful.
Or maybe the bottom line is what drives your strategy. We’d like to hear more.