Motley Fool Money Bellwether Stocks, Managing Your Investment Risk, Alphabet Preview
Feb 1, 2022
Bill Mann, a Senior Analyst at Motley Fool, discusses UPS as a key bellwether stock for the economy, revealing insights into its recent performance and implications for market health. He also highlights ExxonMobil's impressive revenue surge, suggesting further growth potential in energy stocks. Meanwhile, Alison Southwick shares practical strategies for assessing and managing investment risk, reinforcing the importance of understanding personal risk tolerance in decision-making. The conversation touches on Alphabet's upcoming earnings and its strategic shifts in gaming and acquisitions.
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UPS as a Bellwether
- UPS is a good bellwether stock for the U.S. economy, reflecting economic activity.
- However, it's not perfect, as 38% of its revenue isn't domestic.
Consumer Confidence vs. Spending
- In 2021, consumer confidence was low, but spending was high.
- This contrast highlights that actions speak louder than words in economic analysis.
Inflation and Spending Priorities
- Increased inflation shifts spending towards essential needs over discretionary wants.
- UPS's rising per-package costs may indicate this shift, impacting other economic sectors.