, 2022-12-11 09:15:00,
With the Federal Reserve aggressively raising interest rates, many economists predict that the US economy will slide into a recession at some point in the near future. It’s no wonder S&P 500 It’s down 16% this year.
Still, that provides patient investors with a potentially rewarding opportunity. But you should investigate further to determine if a stock price decline has created a worth chance.
Given that consumer spending is possibly slowing as the central bank tries to reduce inflation, let’s take a look at Tough (BLOW 4.00%) Y Six Flags Entertainment (SIX 1.76%) to see which offers the best investment opportunity.
Chewy, an online seller of pet products, supplies and recipes, garnered a lot of attention during the early days of the pandemic as pet adoption skyrocketed. In 2020, the stock price rose 210%. But stocks have been on a rough patch ever since.
However, the company has a lot going for it. Management, citing statistics from Packaged Facts, notes that 95% of dog and cat owners consider their pets part of the family, and the US pet market is expected to grow by 7.5 % per year between 2020 and 2025.
Also, during recessions, spending on pets tends to continue to grow. For example, it grew 12% between 2008 and 2010, the years that spanned the Great Recession, while overall consumer spending fell. This is consistent with empirical evidence on how people feel about their pets and their willingness to spend money on…
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