Your brain makes upwards of 35,000 decisions every single day, according to researchers. And sometimes, it might feel like even more than that:
Do you want to go to the movies on Saturday night or stay in and rent something on Amazon Prime Video?
Do you want to try a new recipe that would require a trip to the grocery store, or do you want to avoid scrubbing pots and pans and order delivery from your favorite restaurant?
When you need a new set of gym clothes, do you want to splurge on brand-new yoga pants from Lululemon (LULU) or search for savings through ThredUp’s (TDUP) online thrift store?
These decisions that seem inconsequential as you’re making them are actually far more important than most folks realize: They determine what kinds of products get made, how many hit the market, and even the number of jobs created in that industry.
In America, consumer spending drives nearly 70% of everything that happens in our economy… And that makes consumers a powerful force when it comes to investing.
At LikeFolio, we understand the singular power of the consumer better than most. And we made it our business to listen to what they’re saying about the products, services, brands, and companies that touch their lives.
With direct access to the firehose of Twitter data being created every minute of every day, we see in real time how consumers “vote” with their wallets: on cool new products, fashion, food, beverages, and more.
That voting separates the winners and the losers, both with products and services and with the companies that sell them.
And because a product that’s a big hit can do wonders for a company’s sales, earnings, and stock price, understanding where consumer interest is hot (and where it’s not) gives you an enormous edge as an investor…
Especially during earnings season, when we’re able to harness the full power of “the force” to spot the hottest opportunities, make winning trades, and deliver some of the biggest gains you’ll see all year.
Earlier, I showed you why the earnings season kicking off just days from now could deliver the most profitable trades we’ve seen in years.
Now, I’m going to share a consumer trends “cheat sheet” that breaks down which sectors our data determined as the most bullish (and bearish) this earnings season so you can start looking for opportunities…
Your Consumer Trends Cheat Sheet for Earnings Season
At a glance, the “cheat sheet” gives you a breakdown of where consumers are voting with their wallets right now – and where they’re not:
The green sectors (on the left) are seeing positive consumer traction – a tailwind for companies in those businesses. This could make corporate execs more optimistic and boost the potential for an all-important “forward-guidance increase” when they talk about their full-year 2023 outlook.
The red sectors (on the right) are just the opposite. Consumers are cooling their spending in these categories, which means companies there could become more conservative for the year.
And since launching Derby City Daily, we’ve covered a whole host of investable companies on either side of the coin:
✔️ Ulta (ULTA) and Sephora in makeup/skincare
✔️ Revolve (RVLV) in luxury goods & fashion
✔️ Coinbase (COIN) in decentralized finance
✔️ Nvidia (NVDA) and Microsoft (MSFT) in artificial intelligence
✔️ Royal Caribbean (RCL), Norwegian Cruise Line (NCLH), and Carnival (CCL) in cruises
❌ McDonald’s (MCD) in restaurants
❌ Walmart (WMT) and Target (TGT) in department stores
And I’ll be bringing you yet another player we’re bullish on in the AI space soon – so keep an eye out for that coverage to hit your inbox.
But with earnings season right around the corner, let me show you how to start putting this “force” power to work starting today…
Using Consumer Trends to Win Big
When you have LikeFolio in your corner, you can set up trades to cash in on consumer trends in publicly traded companies before they report earnings. That’s the beauty of our predictive consumer insights data.
And with the right strategy, the risk/reward calculus can be downright magical.
But it’s not as simple as going all-in with a bullish play on a company that’s benefitting from a positive macro trend. The same goes for the bearish side of the coin.
There’s a lot more to winning earnings season trades that Landon and I need to show you, like:
- How we boil down these macro trends with the rest of our consumer insights data to know if we should be bullish, bearish, or neutral heading into a company’s earnings event…
- The specific investing and trading strategies that allow us to take on an appropriate, clearly defined (and limited) amount of risk…
- And how YOU can get in on the action with us to take advantage of hundreds of quick-hit profit opportunities over the next 10 weeks.
We’ll show you how to get into a trade on Monday, get out on Friday, and get paid – over and over again – all earnings season long.
Click here to let us know you’re coming, and we’ll look forward to seeing you there.
Until next time,
Andy Swan
Co-Founder