The Team
August 12, 2021

Limited Edition Investment: Consumer is Back Kit

The world is reopening. Economic opportunities and job openings abound. And as consumers return to stores and restaurants, it’s time for savvy investors to pick up their phones, open their favorite investing app – and let’s artificial intelligence algorithms do the heavy lifting with our Limited Edition Investing Kits. Whether it’s back to school, back to work, or just back to business, has your back.

Here at, we’re fans of dynamic investing that rolls with the punches and meets economic trends head-on. That’s why we’re introducing a line of limited edition investments tailored to the reason for the season. To wit, as shoppers take to the stores, malls, and restaurants, we thought we’d put our own spin on the consumer portfolio.

And while we can’t predict the future, we can give investors a kit that capitalizes on the capital flowing through the hottest consumer discretionary stocks around.

Welcome back, consumers. We’ve missed you.

What are Consumer Discretionary Stocks?

Consumer stocks are issued by the businesses that produce or sell items you buy regularly. You can divide consumer investments into two clusters: consumer staple stocks and consumer discretionary stocks.

When you buy consumer staples, you’re purchasing items you need, such as groceries, personal care items, and medication. On the whole, consumer staples are impervious to business cycles and price elasticity due to their necessity. This makes staple stocks excellent bellwether investments for periods of economic downturn – just look at 2020’s stock chart.  

On the other hand, discretionary goods may seem quasi-essential but aren’t necessary for survival. Computers, fast food, and clothing fall under this umbrella. (There’s some debate about whether computers, clothes, and other modern essentials count as discretionary or staple spending – but we’ll leave that discussion for another day.)

Typically, consumer discretionary stocks follow cyclical patterns, with spending often spearheading broader market declines. For instance, car companies, clothing manufacturers, and entertainment providers may experience slowed or negative growth when the economy tanks. But when the economy reopens, discretionary stocks lead the charge.

Why Invest in Consumer Discretionary Stocks?

It’s precisely that last line that led us to create our “Consumer is Back” kit, which focuses broadly on retail and restaurant investments.

The premise is simple: after a year of lockdowns and economic stifling, the world is ready to reopen. And as bars, restaurants, and retailers enjoy consumers’ splurges, these consumer discretionary stocks are prepared to rebound like never before.

But not all stocks tied to economic reopening will prove successful in the coming months.

Restaurants and Reopening

For instance, take restaurant stocks.

While consumers are clamoring at the door to dine out for the first time in a year, many restaurants face labor shortages due to the low wages and benefits offered compared to other industries. Additionally, many companies still allow their workers to remote in from the comfort of their home offices.

As such, restaurants that rely solely on dine-in customers may suffer compared to those offering express takeout or delivery. At the same time, those restaurants that dove headfirst into DoorDash, Grubhub, and fast-food trends may continue to prosper.

Retailers and Covid-19

On the other hand, you have retailers.

While these stocks often benefit from cyclical trends, covid-19 changed how consumers interact with the retail environment.

For example, many ecommerce companies boomed during the pandemic even as customers avoided in-person spending sprees. And as travel and entertainment spending took a dive, consumers poured their dollars into electronics, home improvement projects, and new hobbies.

But as the economy reopens, those retailers that survived the pandemic are beginning to see shoppers return. This will lead to an inevitable shift in consumer spending patterns – though to which retailers remains to be seen.

The Consumer is Back

Fortunately, our AI is uniquely suited to sniff out the best consumer discretionary stocks for our limited-time kit. The Consumer is Back will focus on those restaurant and retail stocks that stand to profit from the economic reopening while maintaining a medium level of risk.

Since our deep-learning algorithm determines all trade selections, we can’t guarantee which stocks will end up in our kit. But don’t be surprised to see familiar names on the list, such as:

  • Amazon
  • Apple
  • Chipotle
  • DoorDash
  • Home Depot
  • Lowe’s
  • Nike
  • Starbucks
  • Walmart

To start taking advantage of this boom in consumer surplus spending, just log into your Invest account, click “Invest Now” in your strategy selection screen, and set your preferred investment allocation.

Then, sit back, relax, and let our artificial intelligence algorithms handle the rest.

Disclosures offers advisory services through Quantalytics Investment Advisors, LLC ("QIA"), a Registered Investment Adviser. This is solely for informational purposes. Advisory services are only offered to clients or prospective clients of QIA . Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Comments by viewers or third-party rankings and recognitions are no guarantee of future investment outcomes and do not ensure that a client or prospective client will experience a higher level of performance or results. Adviser has reasonable belief that the content posted by a Third Party does not contain untrue statements of material fact or misleading information regarding its advisory services.

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