The Toll Brothers CEO said Wednesday the constant talk of a recession may in fact put us into a recession. If that’s happening, which stocks are most likely to weather the tough times?
Fewer people are buying big ticket items, right now especially those who are worried that their home or job may be gone tomorrow, says Jeff Macke. So, what are the consumer plays, if you think a recession is at bay?
It could be entertainment! Video games are coming off their best year ever and box office receipts are climbing the most in 5 years, he explains.
On Wednesday, Dreamworks announced blowout earnings on strong "Shrek the Third” sales. And Netflix says their subscribers are soaring.
What's the trade?
I like Dreamworks and Sony replies Jeff Macke. I think people will continue to amuse themselves with the low ticket items.
It might be late for Netflix , he adds, but investors could buy this stock on a pull back. Also check out Nintendo and Disney , he counsels.
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Trader disclosure: On Feb.27, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Najarian Owns (XTO) Calls, (JEF) Calls, (CNET) Calls, (BIIB), (C), (CSCO), (MS), (MSFT), (XLF), (YHOO) Calls; Macke Owns (INTC), (DIS), (ATVI); Seymour Owns (AAPL), (CSCO), (INTC), (MER), (MSFT), (SHLD), (TSO);Seygem Asset Management Owns (INFY), (EWT), (AUO), (UMC), (TSM), Gazprom, Is Short (PBR); Finerman Owns (HD), (GS), (LOW); Finerman’s Firm Owns (FNM), (MSFT), (YHOO), (WMT), Is Short (IYR), (IJR), (IWM), (SPY), (MDY), (LEH), Finerman’s Firm and Finerman Own (FLS)
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