MGM

MGM Pick #9 for my new Millennial Portfolio (for investors who have more time than money)

MGM Pick #9 for my new Millennial Portfolio (for investors who have more time than money)

I’m taking advantage of today’s drop in shares of MGM Resorts International (MGM) after yesterday’s earnings report to add these shares to my new Millennial Portfolio. The stock dropped on bad pandemic performance from the company’s Las Vegas casinos and resorts and a slide in revenue from its Macao operations. But revenue from online betting soared. And that business is the future of MGM–and the reason that investors with long-time horizons would want to own this stock. (And it won’t hurt at all, when revenue picks up from Las Vegas operations once the pandemic is in the rear-view mirror.

Market sees fourth quarter GDP slowdown as good news

Market sees fourth quarter GDP slowdown as good news

U.S. GDP growth slowed in the fourth quarter, gaining just 1% from the third quarter. For the full year the U.S. economy contracted by 3.5%. That makes 2020 the first time that the economy has contracted for a full year since 2009 and the Great Recession. At the bottom of that recession that economy contracted by 2.5%. 2020 is also the worst year for economic growth since 1946 when the economy shrank by 11.6% as the country demobilized after World War II. Consumer spending slowed in all 15 categories tracked by the Bureau of Economic Analysis. The sectors that had powered the recovery in the third quarter–restaurants and hotels, for instance–reversed. The growth in spending on cars and health car also slowed from the acceleration in the third quarter. So why is this good news as far as the stock market is concerned?